What is the Property Practitioners Act and How Will it Change Inspections in South Africa ?
The Property Practitioners Act ( PPA ) will come into effect from 1st February 2022 , President Cyril Ramaphosa has announced .
The Act , which will repeal the Estate Agency Affairs ( EAA ) Act , was originally tabled in March 2020 for public comment . At the time , no definitive date was given as to when the Act would come into force .
Industry commentators have said that the Act will bring a raft of significant changes to the property sector in South Africa , both for consumers and industry practitioners .
While it has been designed to protect consumers first and foremost , property practitioners have been urged to learn of the new changes if they haven ’ t already , lest they fall foul of the new regulations .
Commission and Brokering Requires Certification The new Act will introduce the necessity for a valid Fidelity Fund Certificate for practitioners who broker or earn commission from sales and leases . Sellers and landlords can request this from their property professional at any time .
While already a part of the previous act , the new legislation will expand to include the need for tax clearance and BEE certification , with compliance a must for both individuals and businesses .
Defect Disclosures are Mandatory The Property Practitioners Act will now make property defect disclosure documents a mandatory requirement for sales and leases , whereas before it was optional , although always considered best practice .
Like other nations , the document will become a vital part of the sale or lease agreement , though buyers may still wish to solicit a professional to conduct a property inspection separate to the legislative requirements .
What ’ s a Property Practitioner ? The Act defines a property practitioner as someone involved in letting , purchasing , marketing , selling , financing or renting . In a move welcomed by many consumers , the Property Practitioners Act seeks to cover a diverse range of practitioners in the industry . Going beyond the former EEA act , which saw its definition of a practitioner fall squarely on the more traditional estate agent , the PPA includes legislation pertaining to the roles of home inspectors , homeowners ’ associations , property developers and brokers , among others .
What Does This Mean for Inspections ? Heavily featured in the new Act , property