Property Practitioners, Sellers and Buyers, Take Note!

Property Practitioners, Sellers and Buyers, Take Note!

The Property Practitioners Act 2019, which repeals the Estate Agency Affairs Act, came into operation on 1 February 2022. Estate Agents, who is now called “Property Practitioners” have new administrative requirements, a list of sanctionable conduct and a new Code of Conduct.

There are two scenarios where Property Practitioners are not allowed to receive remuneration (commission):

In terms of section 56, if the Property Practitioner is not in possession of a Fidelity Fund certificate. If the Property Practitioner is a company, every Director of the Company and if the Property Practitioner is a close corporation, every member of the close corporation must be in possession of a Fidelity Fund certificate.

In terms of section 58, if the Property Practitioner enters into an arrangement with any service provider, including an attorney, whereby the consumer is obliged or encouraged to use the specific attorney to render services (including the registration of the transfer in the Deeds Office).

Section 58 seems to be an attempt to stop Property Practitioners (previously Estate Agents) to recommend a specific transfer attorney, bond originator and/or compliance certificate service provider from whom they receive a referral fee. It is in your best interest to insist on using your own transferring attorney. It is your asset and your choice!

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your adviser for specific and detailed advice. Errors and omissions excepted (E&OE).