FEATURE ARTICLE
FEATURE ARTICLE
Sweeping Changes for the
Real Estate Industry
A Look At the Property Practitioners’ Bill
BY KEVIN MULLINS
The long-awaited Property Practitioners’ Bill was gazetted for comment on 31 March 2017. This proposed new piece of legislation is intended to repeal the aging Estate Agency Affairs Act 112 of 1976 in its entirety. If the Bill passes into law in its current form, it will introduce sweeping changes to the real estate industry.
Crucially, the requirement that the person earns some sort of gain for their services has been omitted from the definition. This means that even persons performing the above functions without reward may be deemed to be property practitioners and therefore subject to the regulatory requirements.
Some of the proposed changes are positive and others will, inevitably, be contentious. This article will explore some of the most dramatic changes to the regulatory framework currently in existence.
Who or What is a“ Property Practitioner”? The definition of“ estate agent” in the current Act is open to some interpretation but, in the main, refers to a person or entity that markets, sells or lets immovable property on behalf of another person for some form of gain. The new Bill expands this definition extensively. In terms of section 1, a“ property practitioner” will now include a bond broker, a home inspector, a facilitator of an agreement of sale or lease( including a Home
14 JULY 2017 SA Real Estate Investor www. reimag. co. za