The Property Practitioners Regulatory Authority (PPRA) has received several complaints from property practitioners alleging that they are required to pay ‘accreditation’ fees to trade in certain estates.
Following the enactment of the Property Practitioners Act, 22 of 2019, and the promulgation of its regulations in early 2022, these arrangements were declared illegal and prohibited.
Section 63(1) of the Property Practitioners Act, 22 of 2019 read with Regulation 35.1 provide that, the Minister of Human Settlements declared the following business practices undesirable and therefore prohibited:
35.1.1.2 “any arrangement in terms of which any party or person that directly or indirectly controls or manages any residential property development, including anybody corporate or homeowners’ association (the managing organisation).
35.1.1.3 receives money or any other reward in exchange for a benefit, advantage, or other form of preferential treatment in respect of the marketing of properties in such property development.
35.1.1.6 effectively provides an advantage to any one property practitioner or group of property practitioners over and above any other property practitioners, in providing services in relation to properties in such property development or,
35.1.1.7 effectively excludes or disadvantages any property practitioner or group of property practitioners from being able to provide services in relation to properties in such property development”.
Property practitioners are reminded that, one of the PPRA’s strategic focus is transformation and inclusivity in the property sector and views these illegal practices as regressive and anti-transformative. To this end, PPRA hereby implores property practitioners to conduct their business within the ambit of the PPA, 22 of 2019 and its regulations.
To assist the PPRA to enforce compliance with the PPA, 22 of 2019, property practitioners are encouraged to report transgressors to the PPRA for investigation and prosecution.
Property practitioners should complete the attached prescribed form to lodge a complaint and furnish supporting evidence of the illegal practices and email same to up@theppra.org.za.
