In the past few months, 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.
Thato Ramaili, acting chief executive of the PPRA, says that following the enactment of the Property Practitioners Act - 22 of 2019 - and the promulgation of its regulations in early 2022, these arrangements are illegal and prohibited.
The law
Section 63(1) of the PPA, read with Regulation 35.1, stipulates 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 any body 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 forms 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.
Inclusivity
Ramaili reminds property practitioners that one of the strategic focuses of the PPRA is transformation and inclusivity in the property sector.
“These illegal practices are viewed as regressive and anti-transformative. In the interests of promoting transformation and inclusivity, the PPRA implores property practitioners to conduct their business within the ambit of the PPA and its regulations,” says Ramaili.
“To assist the PPRA in its efforts to enforce compliance with the PPA, property practitioners are encouraged to report transgressors to the authority for investigation and prosecution.”
To lodge a complaint, visit www.theppra.org.za and complete the prescribed form. Then, send the form together with supporting evidence of the illegal practices to up@theppra.org.za.
Writer: Sarah-Jane Meyer
