The new Property Practitioners Act and Community Scheme

The new Property Practitioners Act (PPA) replaced the Estate Agency Affairs Act and its regulations on 1 February 2022 and the Estate Agency Affairs Board (EAAB) replaced by the Property Practitioners Regulatory Authority (PPRA). 

So what does this mean for Managing Agents? WatchProp explains

Key points emanating from the new PPRA concerning Managing Agents:

• Estate Agents are now referred to as Property Practitioners (PP) and the same applies to managing agents. 
• Property practitioners (managing agents) who manage property must hold a Fidelity Funds Certificate (FFC), as must the directors of the managing agency.
• The Managing Agency will need to have a valid B-BBEE certificate (any level) to obtain an FFC.
• The FFC must be displayed and mandatory sentences included on letterheads, agreements and all formal documents.

Further points of interest from the new PPA include:

• Fidelity Funds Certificates must be renewed every 3 years. Any current certificate issued by the EAAB will remain in force for the 2022 calendar year.
• All property practitioners must register with the PPRA by 31 October 2022 for 2023 fidelity funds certificates to be issued.
• Managing agents may apply to be exempted from compliance with any specific provision of the PPA.
• The PPRA may regulate the management of property and managing agents.
• Inspectors may arrive at managing agents' offices and request FFCs. 
• Consumers may lodge complaints against managing agents at the PPRA.
• A managing agent may not act as a PP without an FFC.
• To obtain an FFC, managing agents would need to comply with the prescribed standard of training and practical experience to obtain an FFC.
• The Managing Agency will need to open and keep at least 1 Trust account. 
• A Managing Agency may not enter into an agreement with any service provider where the consumer is obliged or encouraged to use that service provider to provide his services in respect of the transaction, where the property practitioner was the effective cause.

For community schemes, this means that property practitioners will now be regulated by the PPA and not the Estate Agency Affairs Act and it is advisable the schemes consult the new Act.

WatchProp can be contacted on 021 914 6660 or email info@watchprop.co.za.