THE ACT
The Property Practitioners Act is new legislation which will have an impact on all estate agents. The Act was signed by the President and published in the Government Gazette on 3 October 2019. Proclamation 47 of 2022 published in the Government Gazette on 14 January 2022 determined that 1 February 2022 is the date on which the Act becomes operational.
The regulations to the Act have been finalized and also published in the Government Gazette on 14 January 2022 and become operational with the Act on 1 February 2022.
OBJECTS OF THE ACT
The stated objects of the legislation are to inter alia:
- Provide for the establishment of the Property Practitioners Regulatory Authority;
- Provide for the definition, regulation and licensing of Property Practitioners, as defined;
- To provide for the continuation of the Fidelity Fund;
- Provide for the protection and promotion of interests of consumers;
- Provide for dispute resolution in the property market;
- Promote the meaningful participation of historically disadvantaged individuals in the property market;
- Provide for the repeal of the Estate Agency Affairs Act.
- CONTENT OF THE ACT
- The Act has various chapters. What follows is a brief indication as to the content of the most important chapters as they apply to estate agents (now known as Property Practitioners).
- Section 1 of the Act contains various definitions, one of which is the definition of a Property Practitioner. This definition is very broad and needs to be read to be understood. It extends to estate agents (sales, auction and letting), property leasing / managers, time share and fractional ownership sales, mortgage originators, bridging agents and managers of a Property Practitioner business.
- Property valuers and inspectors appear to have been excluded from the Act.
- The Act applies to the marketing, promotion, managing, sale, letting, financing and purchase of immovable property (Section 2).