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Understanding the Property Practitioners Act: A Complete Guide

February 20, 20268 min read

The Property Practitioners Act replaced the Estate Agency Affairs Act. Here's everything you need to know about compliance under the new legislation.

The Property Practitioners Act Explained

The Property Practitioners Act 22 of 2019 brought significant changes to the real estate industry in South Africa. Here's your complete guide:

Key Changes from the Old Act

1. Expanded Definition of Property Practitioners

The new Act covers more activities including:
  • Traditional estate agents
  • Property managers
  • Bond originators
  • Home inspectors
  • 2. New Registration Requirements

  • All property practitioners must register with the PPRA
  • Annual Fidelity Fund Certificates required
  • Stricter qualification requirements
  • 3. Enhanced Consumer Protection

  • Mandatory disclosure requirements
  • Cooling-off periods for certain transactions
  • Better dispute resolution mechanisms
  • Compliance Requirements

  • Registration - All practitioners must be registered
  • Fidelity Fund - Valid certificates for all activities
  • Trust Accounts - Proper management and reporting
  • Records - Comprehensive documentation of all transactions
  • Training - Ongoing professional development
  • Penalties for Non-Compliance

  • Fines up to R1 million
  • Imprisonment up to 10 years for serious offences
  • Loss of registration
  • Personal liability for directors
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