By bringing together all participants in the real estate industry under one Act, the Act has expanded the scope of its applicability to begin with. The term “Property Practitioner” was recently introduced, and it no longer just refers to estate agents but also to other key stakeholders including bridging financiers, real estate developers, and property managers, to name a few.

By requiring property practitioners to ask sellers or lessors to submit a properly filled out and signed mandatory disclosure form, the Act provides consumers with much-needed protection. This form lists every flaw in the property that the seller or lessor is aware of. A Property Practitioner is not permitted to accept a mandate if this paperwork is not presented, according to Section 67 of the Act.

The Act states that if this form is not produced, it will be assumed that any flaws or deficiencies in the property were not disclosed to a prospective buyer or lessee. It also states that a property practitioner who accepted a mandate without attaching this form to the agreement of sale or lease may be held accountable by the affected consumer.

The addition of Section 58, which restricts the interactions between Property Practitioners and other service providers in the real estate market, is another measure taken to ensure consumer safety. According to Section 58, a property practitioner is not allowed to enter into an agreement that compels or encourages a client to hire a certain service provider, such as an attorney, to perform any service for which the property practitioner was the direct cause. A person who provides services in violation of Section 58 is not entitled to payment, compensation, or other benefits in exchange for those services.

According to the Act, a property practitioner must also have a tax clearance certificate and a BEE certificate in addition to a fidelity fund certificate. According to Section 56 of the Act, a Property Practitioner is not eligible for compensation or payment unless they were in possession of a valid Fidelity Fund Certificate at the time they performed their duties. Each director, member, trustee, or partner must possess a Fidelity Fund Certificate if the Property Practitioner is a legal entity (such as a company, close corporation, trust, or partnership). The stated Certificate has a three-year expiration date. The Act requires that before making any payments to a property practitioner, conveyancers obtain a copy of the Fidelity Fund Certificate from the property practitioner.

The Act calls for the creation of a Property Practitioner Regulatory Authority (the “Authority”) to redress disparities and bring about change within the real estate industry. The Authority is required to periodically implement and evaluate steps to gradually promote an inclusive and integrated real estate sector, execute suitable measures, and evaluate the sector’s stage of transformation. According to Section 20 of the Act, all organs of state must use the services of Property Practitioners who adhere to the broad-based black economic empowerment and employment equity legislation and policies when acquiring goods and services relating to real estate.

In accordance with the Act, the Authority must also launch a Property Sector Transformation Fund within six months of its creation. The Authority must use the Property Sector Transformation Fund in a way that will support black-owned businesses and owners, encourage historically underrepresented groups to work in the real estate industry, and raise public awareness of real estate deals and other commercial ventures.

We have yet to observe the practical application of this Act within the industry because it has just recently been put into effect. It is advised that anybody who satisfies the criteria of “Property Practitioner” familiarize themselves with this Act’s contents or obtain legal counsel in order to comprehend the implications and ways in which this Act may apply to their line of work.