Property Practitioners Act - What you need to know.
Category Property Advice
The Property Practitioners Act of 2019 that was signed into law by President Cyril Ramaphosa in early October 2019 replaces the 43-year-old Estate Agency Affairs Act of 1976. The Act aims at improving the functioning of the property industry, along with regulating the buying, selling and renting processes.
Who are property practitioners?
The new Property Practitioners Act defines the term of a 'property practitioner' to include estate agents, rental agents, mortgage originators, property inspectors, and property managers as well as a number of other property-related persons. However, it is vital to note that this definition excludes sheriffs of the court, a person offering the services of a property practitioner, private individuals selling their property, as well as attorneys or candidate attorneys.
Other title changes to note:
- Intern Estate Agent - Candidate Property Practitioner
- Full Status Estate Agent - Property Practitioner
- Principal Estate Agent - Principal Property Practitioner
The Property Practitioners Regulatory Authority
According to the Property Practitioners Act of 2019, the Estate Agency Affairs Board is to be replaced with the Board of Authority. The goal of the authority is to regulate and maintain the conduct of property practitioners when it comes to dealing with clients. Further regulations are placed about the procedures regarding the marketing, letting, selling, and financing of property - all correspondence, legal agreements, copies of advertising and marketing materials are now required to be kept for 5 years. Also, if a purchaser, tenant, lessor or a seller requests that the agreement to be in any one of South Africa's official languages the seller must be able to supply this.
The Property Practitioners Ombuds
The Property Practitioners Act of 2019 is set to make provision for a Property Practitioners Ombud Office to be established. Follow the necessary procedures, this regulatory body will be tasked with handling and resolving the complaints lodged with regards to the financing, marketing, managing, letting, hiring, sale and purchase of the property.
The Property Practitioners Act 22 of 2019
According to www.gov.za, the Property Practitioners Act 22 of 2019 aims:
- to provide for the regulation of property practitioners;
- to provide for the continuation of the Estate Agency Affairs Board as the Property Practitioners Regulatory Authority;
- to provide for the appointment of the members of the Board and matters incidental thereto;
- to provide for the appointment of the Chief Executive Officer and other staff members of the Authority;
- to provide for the transformation of the property practitioners sector;
- to provide for the establishment of the transformation fund and establishment of the research centre on transformation;
- to provide for compliance with and enforcement of the provisions of the Act;
- to provide for the continuation of the Estate Agents Fidelity Fund as the Property Practitioners Fidelity Fund;
- to provide for consumer protection;
- to provide for the repeal of the Estate Agency Affairs Act, 1976; and
- to provide for matters connected therewith.
Along with The Property Practitioners Act, both agencies and clients need to be aware of the new Protection of Personal Information Act (POPIA) - South Africa's data protection law. Simply put, this law protects people from harm by protecting their personal information and their privacy. In other words, clients can easily sign up for newsletters from their property practitioner's agency without the concerns of having their information supplied to third parties without their consent.
If you have further questions relating to the new Property Practitioner's Act contact Knight Frank Properties today for more information.
Author: Knight Frank