Property Practitioners Act (22 of 2019)
Purpose of the Act ➢ Regulation of Property Practitioners ➢ Property Practitioners Regulatory Authority ➢ Transformation of the sector ➢ Compliance and enforcement of Act ➢ Fidelity Fund ➢ Consumer Protection
Chapter 1: Definitions, Application, Objects and Establishment of Authority Section 1 – Definitions Candidate Property Practitioner • Not yet met all the qualifications/experience as required • Undergoing training under supervision or a program created by the Authority
Chapter 1: Definitions, Application, Objects and Establishment of Authority Section 1 – Definitions Principal • Director / Member / Partner • Trustee • Owner of Sole Proprietorship
Chapter 1: Definitions, Application, Objects and Establishment of Authority Section 1 – Definitions Property Practitioner (1) • Natural or juristic person • Acquisition of gain on their own account • Directly or indirectly acts for or on behalf of any other person
Chapter 1: Definitions, Application, Objects and Establishment of Authority Section 1 – Definitions Property Practitioner (2) • By auction • Sells • Purchaser • Manages • Publicly exhibits • Canvases • Negotiates
Chapter 1: Definitions, Application, Objects and Establishment of Authority Section 1 – Definitions Property Practitioner (3) • Lets or hires or publicly exhibits • Collects or receives money payable – lease • Financing – bridging finance / bond broker • Provides services as an intermediary / facilitator to effect conclusion of OTP / lease
Chapter 1: Definitions, Application, Objects and Establishment of Authority Section 2 – Application of the Act ➢ Marketing / Promotion ➢ Managing ➢ Sale ➢ Letting ➢ Financing ➢ Purchase ➢ Rights, obligations, interests ➢ Duties or powers associated to property
Chapter 1: Definitions, Application, Objects and Establishment of Authority Section 5 – Establishment of Property Practitioners Regulatory Authority Juristic Person – PPRA (EAAB) Governed = Board of Authority Regulatory mechanisms – objects of Act
Chapter 1: Definitions, Application, Objects and Establishment of Authority Section 6 – Functions of Authority 1. Regulate Conduct of PP • Dealing with consumers • Marketing, managing, finance, sale and purchase 2. Compliance with Act 3. Consumer Protection 4. Education, training and development 5. Transformation
Chapter 4: Transformation of Property Sector Section 21 – Property Sector Transformation Fund ➢ Black owned firms & principals ➢ Participation of historically disadvantaged ➢ Consumer awareness programme ➢ Work readiness programme
Chapter 4: Transformation of Property Sector Section 23 – Exemptions in respect of accounting records and trust accounts 1. Turnover below R2.5 million = independent review by registered accountant 2. Minister may by notice • Exemptions • Method for review of accounting records
Chapter 5: Compliance and Enforcement Section 25 – Powers of inspectors to enter, inspect, search and seize ➢ Conduct inspection = compliance with Act ➢ Private residence = written notice in advance ➢ Produce FFC, books / records or other documents ➢ Furnish information ➢ Examine
Chapter 5: Compliance and Enforcement Section 26 – Compliance Notices 1. Minister to determine: • Minor contraventions • Substantial contraventions 2. Prescribe fines / Compliance notices
Chapter 5: Compliance and Enforcement Section 28 – Lodging of Complaints 1. Any person can lodge a complaint against PP 2. Authority = 7 days to acknowledge & issue case number 3. Request further information 4. Mediation 5. Adjudication
Chapter 7: Property Practitioners Fidelity Fund Section 41 – Fees payable by property practitioner Annual Fee: 1. Fidelity Fund Certificate 2. Any amount prescribed by the Minister
Chapter 8: Property Practitioners Section 48 – Prohibition on rendering services without FFC 1. No person or entity may act as PP without a valid FFC 2. Entity – every person must be issued with a FFC • Directors • Members • Partners • Trustees 3. Act without FFC – guilty of an offence
Chapter 8: Property Practitioners Section 50 – Disqualification from issue of FFC 1. Not an SA citizen & unlawfully in SA 2. Guilty of contravention of EAAA 3. Unsound mind 4. Dismissed from a position of trust 5. Guilty of a civil/criminal offence relating to fraud/dishonestly
Chapter 8: Property Practitioners Section 53 – Mandatory display of FFC 1. Prominently displayed in every place of business 2. Letter head / marketing material – prescribed sentence 3. Agreements – prescribed clause
Chapter 8: Property Practitioners Section 54 – Trust Account (1) ➢ Every PP must: ➢ Open and keep one or more trust accounts ➢ Appoint an auditor as prescribed ➢ Provide the Authority with auditors information ➢ Immediately deposit all trust money
Chapter 8: Property Practitioners Section 54 – Trust Account (2) ➢ Every PP must: ➢ Retain all trust money ➢ Bank = issue certificate to Authority ➢ Keep account record of deposits & investments ➢ Balance books monthly ➢ Audit report = submitted within 6 months to Authority ➢ Annually confirm/update details of auditor
Chapter 8: Property Practitioners Section 56 – Property Practitioner not entitled to remuneration in certain circumstances 1. No valid FFC 2. Conveyancer paying remuneration • certified copy of valid FFC • period transaction took place
Chapter 8: Property Practitioners Section 58 – Limitation on relationships with other property market service providers ➢ PP may not practice in association with any prohibited person by law, code of conduct, ethics or protocol ➢ Enter into an agreement whereby consumer is obliged or encouraged to use a particular service provider including an attorney
Chapter 8: Property Practitioners Section 58 – Limitation on relationships with other property market service providers ➢ Renders any service in contravention of this section = not entitled to remuneration ➢ Required to repay any remuneration received plus interest
Chapter 9: Conduct of Property Practitioners Section 62 – Sanctionable Conduct ➢ Cannot act for two or more and receive remuneration from both ➢ Fail to pay money due to authority ➢ Contravenes provisions of Code of Conduct ➢ Carries on an undesirable practice ➢ Commits an offence of dishonestly ➢ Discriminates ➢ Contravenes provisions of Act
Chapter 9: Conduct of Property Practitioners Section 63 – Undesirable Conduct ➢ Minister – declare particular business practice undesirable = prohibited
Chapter 9: Conduct of Property Practitioners Section 64 – Supervision of Candidate Practitioners Candidate Practitioners may not: Draft or complete any documents conferring any mandate or relating to the sale or lease of property
Chapter 9: Conduct of Property Practitioners Section 64 – Supervision of Candidate Practitioners Contravention • Not entitled to remuneration • No defence = not aware
Chapter 9: Conduct of Property Practitioners Section 65 – Franchising ➢ Franchisee must hold valid FFC ➢ Disclose that you operate in terms of a franchise agreement & name of franchisor ➢ Contravention = Authority may withdraw FFC
Chapter 9: Conduct of Property Practitioners Section 66 – Prohibition on conduct to influence issue of certain certificates ➢ May not receive financial benefit / influence a person requested to provide COC’s ➢ Electrical ➢ Entomology ➢ Water/damp ➢ Contravention = guilty of an offence
Chapter 10: Consumer Protection Section 67 – Mandatory Disclosure Form A Property Practitioner must not – ▪ Accept a mandate – completed and signed disclosure form ▪ Provide a copy of form to purchaser / lessee ▪ Signed by all parties & attached to OTP ▪ Can include a clause in agreement – defects & deficiencies ▪ Consumer may still inspect property before finalisation
Chapter 11: General Section 77 – Commencement Comes into operation on a date fixed by the President
Electronic Deeds Registration System Act (19 of 2019)
Electronic Deeds Registration System Act Development, establishment and maintenance of electronic deeds registration system 1. Chief Registrar of Deeds • Establish • Maintain 2. Issue directives • Functional & technical requirements • Specifications for interface • Standards & operation of system • Process & secure retention
Electronic Deeds Registration System Act Transitional Provisions 1. Continue with registration, execution and filing until regulations / provisions are in place 2. Conveyancers continue to manually lodge until discontinued and directive is received from Chief Registrar
Why understanding the Constitution is Important Section 25 Compensation must be just and equitable 1. Public Interest 2. Interest of those affected 3. Relevant circumstances
Electronic Deeds Registration System Act Commencement Comes into operation on a date fixed by the President
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