Dear Colleagues
The Property Practitioners Act came into operation on 1 February 2022 resulting in a lot of uncertainty in the industry. Coupled with this the PPRA CEO was suspended and as the days progressed it became clear that the Authority was completely unprepared for the implementation of the new Act and Regulations.
We are doing our utmost to iron out many of these issues and have regular meetings with the Department, Board, Acting CEO and officials in various departments.
Rebosa acts for its members and we can assure you that we are engaging vigorously with the Authority to bring to conclusion many of these uncertainties. Rebosa also actively participates in the endeavours of the National Property Practitioners Council (NPPC) whose mandate is to represent the industry.
In this report I’ve outlined a few issues that have caused concern and frustration and I hope it provides some clarity. I would also suggest that you visit rebosa.co.za regularly. Our site is constantly updated and if you access the PPRA notifications tab you can stay abreast of all the Authority’s announcements/practice notes.
My team is on hand to assist you with processes as we navigate the new regulations and I am also available to address problematic issues.
As you can well imagine, we are currently inundated with queries and we may not always be in a position to respond immediately as we await guidelines and practice notes from the PPRA. The question often arises: Why should I be a member of Rebosa and what is Rebosa doing for me? Your membership of Rebosa is more important now than ever. We will highlight our milestones in our upcoming AGM but right now it is only the collective voice that is and will be heard as we navigate the implementation of the Act and get the preferred outcomes for industry.
Kind regards
Jan
Undesirable Business Practices
Pursuant to the provisions of Section 63 (1) of the Act, the Minister of Human Settlements determined in Regulation 35 that certain business practices are undesirable and therefore prohibited. It has come to our attention that some property practitioners are still party to restrictive agreements with Home Owners Associations (HOAs) and are therefore acting in contravention of the Regulations.
In the event that you believe this practice is occurring we have drafted a communique (below) which can be sent to the HOA’s in the event that they are not familiar with the new provisions of the Act.
hoa_act_undesirable-business-practices-5
complaint-form-act-22-of-2019-section-28
FIC Notice: Request to Estate Agents (Property Practitioners) to Update RMCPs
Many property practitioners are concerned by the recent communique sent by the PPRA in respect of the FIC notice.
The PPRA seem to be requesting that all estate agents immediately undertake a re-assessment of their risks and record this risk re-assessment in a revised RMCP by 15 July 2022. Estate agents must be ready to make the revised RMCP available to the PPRA and the FIC, upon request.
Please see communique from PPRA on our website and take note of subsection b) to e) on page 3
https://www.rebosa.co.za/wp-content/uploads/2022/06/fic_notification_update_rmcps-1.pdf.pdf
The RMCP template and checklist that Rebosa’s attorneys drafted remains unchanged iro the Financial Intelligence Centre Amendment Act, 2017, which came into effect on 2 October, 2017. The transitional period ended on 1 April 2019. Therefore, effective 1 April 2019 all estate agency enterprises had to ensure full compliance with the provisions of the FIC Act.
In addition the previous EAAB, now PPRA created comprehensive study material specifically designed to assist estate agency enterprises to meet their FIC Act compliance obligations. Please find the study material which can be downloaded from our website below: –
https://www.rebosa.co.za/wp-content/uploads/2019/02/study_material_on_the_fic_act.pdf
Attached below for your ease of reference the template that must be completed (or if you have already done it – please revise it) together with a checklist. You will keep this documentation on file in the event the PPRA or FIC request same from you.
template-rmcp-compliance-checklist-002
2022 Audit Reports on Trust Accounts
The PPRA have issued a comprehensive communique in this regard which can be found on our website
B-BBEE Certificates
It is a requirement of the Act and Regulations that a BEE certificate be submitted when applying for / or renewing an FFC. Rebosa has negotiated a preferential rate for members with a turnover of more than R2,5m who have to obtain their BEE certificates from a registered SANAS verification agency.
All details are available on our website: –
https://www.rebosa.co.za/b-bbee-and-tax-clearance-certificates/
Firms with a turnover of less than R2,5m need to download an affidavit from Rebosa’s website which serves as a BEE certificate.
https://www.rebosa.co.za/the-property-sector-charter-exempted-micro-enterprises-emes/
Tax Clearance Certificates
All natural persons are automatically exempt from submitting tax clearance certificates. Only firms/property practitioner businesses/sole proprietors must have valid tax clearance certificates and submit it when applying for or renewing their firm’s FFCs.
NQF 4 Qualification in Terms of the PP Act
Rebosa’s position is that NQF 4 is no longer a requirement in terms of the current regulations. In line with the regulations, the PPRA has to determine a new standard which must be done in consultation with industry bodies. This process has barely started and will take some time to conclude. Only once this has been finalised will the PPRA be in a position to announce a new standard by means of a Practice Note.
There is nothing in the Act or regulations that empowers the PPRA to maintain the old requirements after 1 February 2022. Rebosa has never advised anyone to stop or not proceed with NQF 4 should they so choose but instead advised that it would be in their best interest to wait for a final determination in this regard.
We believe the final determination cannot include the NQF4 as it requires 1500 hours to complete (not including the verification process and becoming certified), yet the regulations determine that candidates must qualify within 180 days. The regulations also determine that the PDE exam can be written before entering the industry, clearly indicating that NQF4 is not a prerequisite.
It is advised that a final determination be awaited.
PPRA CEO Suspension
The Property Practitioners’ Regulatory Authority (PPRA) board placed its CEO, Mamodupi Mohlala on precautionary suspension in March this year. Ms Mohlala took the Board and the Minister to the Johannesburg High Court to challenge her suspension and lost with costs. Ms Mohlala then approached the Court for permission to appeal the decision. Judge Siwendu dismissed the application for leave to appeal with costs. Hence the suspension will remain in full force and effect and Ms Deli Nkambule remains the Acting CEO of the PPRA.
See the full judgement below:-
Rebosa Business Leader (RBL)
Rebosa will soon be launching the Rebosa Business Leader (“RBL”). The RBL aims to equip current and prospective business owners with the necessary skills to become operationally successful in the real estate industry whether starting from scratch, buying a franchise or growing an existing business.
The RBL is just one of Rebosa’s programmes aimed at driving transformation and advancing diversity and inclusion in the sector. The RBL is intended to encourage Property Practitioners from underrepresented groups to become owners of their own real estate firms. The RBL is an 8-month blended programme. We have developed a mentorship programme which underpins the RBL and seeks to actively support these property practitioner entrepreneurs during all phases of their career.
We will be approaching all our members shortly to assist with candidate nominations and mentor recommendations.
Fidelity Fund Certificates (FFCs)
See link for renewals and fees for 2023 to 2025 FFCs: –
https://www.rebosa.co.za/wp-content/uploads/2022/06/2023_25_ffc_renewal_-002.pdf
Property Practitioners must renew before 31 October 2022. Business Property Practitioners (BPPs), inclusive of sole proprietors, must ensure that they have their BEE and tax clearance certificates ready when they renew. There is no separate fee for the Firm. BPPs must renew before their property practitioners can be issued with FFCs.
Some property practitioners are unhappy about paying for 3 years. Regulation 41.14 allows for an accommodation which a property practitioner can apply for if they can show severe hardship and provide bank statements etc. This is not likely to be approved lightly.
There is a huge upside to paying and being issued with a 3-year FFC. As in the past many practitioners have struggled to get their FFCs from the PPRA timeously. Now you only need to apply once and not have the burden of dealing with the Authority for another 3 years. In addition, BPPs will not have to renew their BEE certificates annually at enormous cost and will not have to submit tax clearance for the 3-year period.
No refunds will apply should one stop trading at any time.
