What are key changes in the new Property Practitioners Act 2019?

 

The Act basically covers the following general topics:

• definition of who the act regulates – all property practitioners (which covers estate agents, property portfolio managers, estate managers, “bond brokers”, and providers of bridging finance among others);

• continuation of the Estate Agency Affairs Board (EAAB) as the Property Practitioners Regulatory Authority (PPRA);

• continuation of the Estate Agents Fidelity Fund as the Property Practitioners Fidelity Fund;

• rules for appointment of board members, the CEO and other staff members of the PPRA;

• transformation of the property practitioners sector (which focuses on increasing B-BBEE candidates in the sector and removing previous barriers to entry, such as rigid training requirements);

• establishment of the transformation fund and research centre (aiming to promote Black owned firms and Principals, assist B-BBEE candidates with training and create awareness of the profession);

• focus on consumer protection (mandatory disclosure, agreements, education/public awareness of consumer rights and a property practitioner’s duty of care to both buyers and sellers); and

• repeal of the Estate Agency Affairs Act, 1976.

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When do training requirements under the Property Practitioners Act 2019 and subsequent Regulations 2022 come into effect?

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There’s a lot of speculation around the new Property Practitioners Act and subsequent Regulations from everyone in the industry. The most common questions we get are about training of agents and how this will change under the new regulations. At this stage, the new requirements are very much “up in the air” with additional instructions expected from the PPRA over the course of the year. Note that both LOGBOOK and the NQF4 REAL ESTATE COURSE (as we know it) will be discontinued under the new regulations.

These new regulations will not apply to current full status agents or current intern estate agents who had a valid FFC prior to 1 Feb 2022. However, it will take time for the relevant professional bodies to create and implement the new courses. As such, the PPRA may bring in transitional provisions for the phasing in of some or all of the new training requirements under the new Act.

In other words, business as usual until further notice!

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What are the new status levels for property practitioners under the Regulations brought out in 2022?

 

The new registration status levels under the Property Practitioners Regulations - 2022 are as follows:

• Candidate Property Practitioner; registered with the PPRA, but can only act with certain restrictions applied;

• Non Principal Property Practitioner or Property Practitioner;

• Principal Property Practitioner; business owner and/or manager of a property practitioner business.

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What are the new training requirements for property practitioners under the Regulations brought out in 2022?

 

The PPRA will require the following for agents to become fully qualified:

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Professional Designation Exam (PDE)

• The PDE can be sat by anyone at any time (technically a prospective agent can now sit the PDE4 prior to registering with the PPRA or an agency)

• It will be scheduled at least 4 times per year

• As soon as an agent is registered with the PPRA and acting as a candidate property practitioner, they will have 180 days to sit and pass the PDE4 (where there will be at least two exams during that time)

• If a candidate property practitioner fails to pass the PDE within the 180-day period they may apply to the PPRA for an additional 180 days on good cause shown

• Candidates can request for the exam to be written in all official South African languages or taken orally

 

6-Module Industry-Specific Practical Course

• Maximum time of 6 months to complete

• Course content yet to be developed by leading industry bodies

• Will need to be reviewed and approved by the PPRA

 

6-month Probation period

Once a candidate property practitioner passes the PDE4, they have a further 6-month “probation period” where they must still act under supervision of a qualified property practitioner

 

Continued Professional Development

All property practitioners must undergo and meet requirements of continued professional development (CPD) training to maintain their registration;

• CPD is to be completed on a 3-year rolling cycle with 4 training modules per year

• PPRA will approve any business or independent training organization providing CPD (each module must be pre-approved by the PPRA)

• PPRA will charge PPs R1,500 per annum for CPD, unless they enlist the help of an independent training provider, of which they’ll be charged R500 per annum

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What are the upcoming exam dates?

 

The PDE4 exam can be sat typically four (4) times per calendar year. The EAAB releases the PDE4 exam dates annually.​