Property Practitioners Bill Q&A

Following is Rebosa’s commentary submitted to the Department of Human Settlements on the Property Practitioners Bill.

Questions & Answers

Question:

Are managing agents excluded from the definition from property practitioner and therefore not required to adhere to the provisions of the Bill?

Answer:

Managing agents are definitely included, in fact it is hard to find anyone in South Africa that is not included!

Question:

With reference to the requirement of a BEE certificate.  Would small agencies not be affected adversely?

Answer:

The Property Charter excludes all estate agencies with an annual turnover of R2,500,000 or less.  According to available information more than 80% of estate agencies have a turnover of less than R2,500,000 - most will not have to comply.

Question: Ombudsman

Will the Ombudsman address complaints from consumers and agents alike or is this just a protection measure in favour of consumers?

Answer:

The Ombudsman will only address complaints from consumers.

Question: Facilitator

Will the term “facilitator” extend to portals such as Prop24 and Private Property, meaning that they will need to hold a valid FFC or at least enforce advertisers on their portal to hold a valid FFC?

Answer:

The definition of a property practitioner is extremely wide and may well in its current formulation include property portals. This definition is unlikely to remain unchanged.

Question: Property Practitioner

Does this definition include a private individual who enters into a lease with another private individual or a property owning company that leases a commercial unit to a tenant?

Answer:

No it does not. A property practitioner acts “on behalf of another” person/entity.

Question: Indemnity Insurance

Will indemnity insurance be affordable?

Answer:

The indemnity insurance referred to in Section 39 will be paid for by the Authority – as is currently the case with the EAAB. As to the insurance in terms of Section 56 – it depends on what the minister prescribes.

Rebosa will object to Section 56

Question: Continuous Professional Development

Why is there no mention in the bill of CPD?

Answer:

CPD is addressed by way of regulation, currently the Regulation 2008. The content, etc. will in future also be determined by regulation. Regulations are also published for comment before being enacted.

Question: BEE Certificate

A BEE certificate seems to be required, yet little is known of BEE requirements?

Answer:

The Property Charter was published years ago and can be found on this portal. Compliance depends on turnover.

Question: Preferred Language

How will this work?

Answer:

It will be expensive/impractical, if not impossible to make documentation available in all South Africa’s official languages. This is problematic and Rebosa will object.

Question: BEE Certificate

Are managing agents excluded from the definition from property practitioner and therefore not required to adhere to the provisions of the Bill?

Answer:

Managing agents are definitely included, in fact it is hard to find anyone in South Africa that is not included!

Question:

With reference to the requirement of a BEE certificate. Would small agencies not be affected adversely?

Answer:

The Property Charter excludes all estate agencies with an annual turnover of R2,500,000 or less. According to available information more than 80% of estate agencies have a turnover of less than R2,500,000 - most will not have to comply.

If you have any questions on the bill you would like answered, please email us at info@rebosa.co.za

Please remember to submit your commentary to us on the email above for inclusion in our final submission to the Department of Human Settlements.

Share This