5 Steps to Agency Compliance with the PPRA

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The Crackdown Starts Now: Property Developers Under the Scrutiny of the PPRA

“In the real estate world, property developers are innovators—giants of the industry who shape property trends and take risks where others dare not tread. These developers are the elite in a billion-rand industry in South Africa. However, when they step into the roles of estate agents by marketing, selling, renting, or managing their developments, they must adhere to the Property Practitioners Act No. 22 of 2019 and its accompanying regulations.” – says Janet Alexander from Principal Property Services.

Compliance with the PPRA (Property Practitioners Regulatory Authority) is mandatory for developers who take on these roles. While some developers have resisted these regulations, seeking legal opinions to bypass them, all paths eventually lead back to the same conclusion: Developers selling and renting their own properties are considered property practitioners and must register with the PPRA.

As of July 1st, 2024, all specialised property fields, including developers, must be registered with the PPRA. Compliance is crucial, and here are five steps to guide you:

  1. Register and Reserve Your Agency Name: Your chosen name needs to be available at both the PPRA and CIPC.
  2. Appoint Principal and Property Practitioners: Register these practitioners with the PPRA under your firm.
  3. Ensure Compliance with related authorities, including BEE and POPI.
  4. Maintain Agency Compliance: Adhere to ongoing PPRA regulations.
  5. Ensure Practitioner Compliance: All employed property practitioners must be registered and compliant with PPRA rules.

Property developers are not being singled out. This compliance is a sector-wide requirement, extending to estate agents, auctioneers, mortgage originators, and others within the property industry.

As of 1st July 2024, all specialised property fields must register with The Authority:

  • Estate Agents
  • Attorneys Employees
  • Auctioneers
  • Bridging Finance
  • Business Brokers
  • Developers
  • Electronic Property Platforms
  • Homeowners Associations
  • Managing Agents
  • Mortgage Originators
  • Property Facilitators
  • Timeshare and Fractional Ownership

The definition of a Property Practitioner as defined in the Act

(a) means any natural or juristic person who or which for the acquisition of gain on his, her or its own account or in partnership, in any manner holds himself, herself or itself out as a person who or which, directly or indirectly, on the instructions of or on behalf of any other person—

(i) by auction or otherwise sells, purchases, manages or publicly exhibits for sale property or any business undertaking or negotiates in connection therewith or canvasses or undertakes or offers to canvas a seller or purchaser in respect thereof;

(ii) lets or hires or publicly exhibits for hire property or any business undertaking by electronic or any other means or negotiates in connection therewith or canvasses or undertakes or offers to canvass a lessee or lessor in respect thereof;

(iii) collects or receives any monies payable on account of a lease of a property or a business undertaking;

(iv) provides, procures, facilitates, secures or otherwise obtains or markets financing for or in connection with the management, sale or lease of a property or a business undertaking, including a provider of bridging finance and a bond broker, but excluding any person contemplated in the definition of ‘‘financial institution’’ in section 1 of the Financial Services Board Act, 1990 (Act No. 97 of 1990);

(v) in any other way acts or provides services as intermediary or facilitator with the primary purpose to, or to attempt to effect the conclusion of an agreement to sell and purchase, or hire or let, as the case may be, a property or business undertaking, including, if performing the acts mentioned in this subparagraph, a home ownership association

Disclaimer: The information provided in this article is for general informational purposes only. While we strive to keep updates accurate, the Property Practitioners Regulatory Authority (PPRA) regulations are subject to change. PropAcademy is not responsible for any inaccuracies or decisions made based on this information. For the most current regulations, please consult the PPRA directly or visit their official website.

Required Logbook Confirmation Letter for Candidates

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The Property Practitioners Regulatory Authority (PPRA) has ceased accepting logbook submissions, both online and in-person at their offices.

Candidates are now required to provide a co-signed letter from their Principal or Mentor to the (PPRA).

This letter must confirm that they have completed one of the following:

  • The Logbook
  • The compulsory practical training modules
  • The work experience modules of the OC: Real Estate Agent SAQA 118714

The necessary letter can be downloaded from this link.

Navigating the 2024 FFC & RC Renewal Process: Essential Insights from PPRA

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PPRA S47, S78 and S49: issuing of FFCs and RCs:

PropAcademy is committed to keeping our community of property practitioners well-informed about the latest regulatory requirements and processes. A recent webinar hosted by the Property Practitioners Regulatory Authority (PPRA) shed light on the essential steps and documentation required for the renewal of Fidelity Fund Certificates (FFCs) and Registration Certificates (RCs) for 2024. Here’s everything you need to know to ensure a smooth renewal process.

Key Updates and Requirements:

  1. Renewal Notifications and Timeline:
  • The PPRA has identified all property practitioners due for FFC renewal in 2024. Notifications will be sent via bulk email, and it is crucial to ensure your contact details, especially your email address, are current in the PPRA records.
  • Invoices for renewal will be dispatched starting July 2024, marking the commencement of the renewal season which will run until October 31, 2024.
  1. Required Documentation for Firms:
  • For Juristic Persons (CC’s or Private Companies): You will need to submit an Application Form, a Tax Clearance Certificate, and a BBBEE Certificate or Sworn Affidavit.
  • For Sole Proprietors: An Application Form and a Tax Clearance showing compliant status are required.
  1. Understanding BEE Compliance:
  • The BEE compliance level accepted is 40 points or more (BEE Level 8). Entities not meeting these standards have the option to apply for an exemption as per Section 4.
  1. Payment and Processing Details:
  • Payments should be made using the specific seven-digit reference number as the payment reference.
  • Once payments are reconciled, compliant property practitioners will receive their FFC or RC valid for three years.
  1. Non-Compliance and Penalties:
  • Practitioners with non-compliance issues will be contacted, and any penalties must be cleared before a certificate can be issued.
  • Non-compliance might include criminal convictions, lack of tax and BEE certifications, or previous claims against the Fidelity Fund.
  1. Ensuring Accurate Contact Information:
  • Verify your contact details with the PPRA to prevent any issues with the issuance of certificates and to ensure you receive all pertinent communications from the PPRA.

How PropAcademy Can Assist:

PropAcademy offers guidance and support to ensure our practitioners navigate these processes seamlessly. Our team can help you understand the documentation requirements, assist in ensuring your compliance with BEE and tax regulations, and provide resources for any queries you might have during the renewal process.

Conclusion:

Staying informed and prepared is key to ensuring that your practice continues without interruption. We encourage all property practitioners to begin preparing for the renewal process early to avoid last-minute hassles and ensure compliance with all regulatory requirements.

Disclaimer: This article is based on information provided by the PPRA during their latest webinar. While we strive to provide accurate and up-to-date information, practitioners are encouraged to verify details with the PPRA directly as policies and regulations may change.

Important Update on Fidelity Fund Certificate Renewal for Property Practitioners

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The Property Practitioners Regulatory Authority (PPRA) has announced a significant update regarding the renewal of Fidelity Fund Certificates (FFCs) and the handling of historical penalties: As stipulated in Regulation 15.4 of the Property Practitioners Act, it remains mandatory for all property practitioners to formally notify the PPRA in writing if they decide not to renew their FFCs.

Historically, failing to notify the PPRA and discontinuing practice without formal communication resulted in penalties for those returning to the industry. However, effective from June 20, 2024, the PPRA will no longer impose penalties on practitioners who did not engage in property dealings during their period of non-renewal.

Practitioners wishing to return to the industry will need to submit an affidavit, available through this link, confirming their absence from the sector along with supporting documentation.

This policy revision is designed to alleviate undue burdens on professionals re-entering the market, ensuring a smoother transition and compliance with regulatory standards. Property practitioners still operating without renewed FFCs by the annual deadline of 31 October will continue to face penalties, maintaining the integrity and professional standards of the industry.

For more details on the process and to access the necessary forms, please refer to the PPRA’s official guidelines. This change reflects the PPRA’s commitment to fair regulatory practices and supports property practitioners in maintaining compliance with ease.

This article is provided for informative purposes only and does not constitute legal advice. Property practitioners are advised to consult the PPRA directly or seek legal counsel to understand how these changes may specifically affect their business operations. PropAcademy is not responsible for any errors or omissions, or for the results obtained from the use of this information.

New Standards and Pathways of Education and Training for the Real Estate Sub-sector

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In terms of Regulation 33 of the Property Practitioners Act

The PPA (Property Practitioners Act) in South Africa introduces significant changes to the regulation of the real estate industry. While the PPA aims to enhance professionalism and consumer protection in South Africa’s real estate industry, its implementation may bring about both opportunities and challenges for practitioners and stakeholders alike. Adapting to these changes will be crucial for navigating the evolving regulatory landscape effectively.

NQF4 Real Estate

Further education and training: NQF Level 4: Real Estate: SAQA ID 59097 is replaced by

Occupational Certificate: NQF Level 4: Real Estate: SAQA ID 118714.

NQF5 Real Estate

Occupational Certificate: NQF Level 5: Real Estate: SAQA ID 20188 is replaced by

Occupational Certificate: NQF Level 5: Real Estate: SAQA ID 121691.

If you currently have an FFC [before the end of June 2024]:

  • If you hold candidate status you must comply with the 2008 regulations.

The PPRA will no longer accept logbooks after 30 June 2024.

If your logbook is due after 30 June 2024, then your principal will need to co-sign a letter to submit to the PPRA. This letter will be released by the PPRA shortly.

  • If you hold principal, non-principal or candidate status without having your qualifications, then you are urged by the PPRA to register for the NQF4, RPL4, NQF5 or RPL5 (whichever course is applicable) before the end of June 2024. If you do not do this by the end of June 2024, you will need to register for the new qualifications, which means that in the case of NQF4 and RPL4, you will not be able to earn commission during the Knowledge and Practical components of your course.

How the PPRA will be implementing the new standards of education and training for the real estate sub-sector with effect from 1 July 2024 for:

  • Existing Principals property practitioners;
  • Principal property practitioners wishing to downgrade to non-principal property practitioner status;
  • Aspirant principal property practitioners;
  • Existing candidate property practitioners; and
  • Aspirants or new entrants wishing to joining the real estate sub-sector as candidate property practitioners for the first time.

Who is affected and how should this be handled?

Practical application to the various categories of property practitioners affected:

The table below will indicate the requirements to be met by 30 June 2024 and from 1 July 2024. The consequences for non-compliance are listed.

1.     Existing Principal, who has no formal qualifications, NQF5 and PDE5 have not been acquired:
Requirements to be met:Enrol in the NQF5 SAQA ID 20188 no later than 30 June 2024.
Then write and pass the PDE5.
Consequences:Enrol in the OC: Principal Real Estate Agent SAQA ID 121691.
You will not be allowed to renew your FFC when it expires.
 
2.     Existing Principal, already acquired the NQF5 SAQA 20188, or has been exempted against this, but has failed to write and pass the PDE5:
Requirements to be met:Write and pass the PDE5.
Consequences:You will not be allowed to renew your FFC when it expires.
 
3.     Principal, who wants to downgrade to non-principal, but has no formal qualifications:
Requirements to be met:Enrol in the NQF4 SAQA ID 59097 by no later than 30 June 2024.
Upon qualifying, write and pass the PDE4.
Consequences:You will not be allowed to renew your FFC when it expires.
 
4.     Principal, who wants to downgrade to non-principal, and has the NQF4 SAQA ID 59097 and NQF5 SAQA ID 20188, or has been exempted against this.
Requirements to be met:Write and pass the PDE4, unless completed before.
Consequences:You will not be allowed to renew your FFC when it expires.
 
5.     Existing non-principal, who has no formal qualifications, NQF4 and PDE4 have not been acquired:
Requirements to be met:Enrol in the NQF4 SAQA ID 59097 by 30 June 2024.
Upon qualifying, write and pass the PDE4.
Consequences:Enrol and complete the OC: NQF4 SAQA ID 118714.
You will not be allowed to renew your FFC when it expires.
 
6.     Existing non-principal, already required the NQF4 SAQA 59097 or has been exempted against this but has failed to write and pass the PDE4:
Requirements to be met:Write and pass the PDE4.
Consequences:You will not be allowed to renew your FFC when it expires.
 
7.     Non-principal, aspiring to become principal, from 1 July 2024, in possession of NQF4, PDE4, and NQF5 or exemption thereof.
Requirements to be met:Write and complete the PDE5, then you may become a Principal.
 
8.     Existing candidates, who failed to comply with 2008 regulations, did not complete the intern logbook, NQF4, and PDE4
Requirements to be met:Enrol in the NQF4 SAQA ID 59097 by 30 June 2024.
Submit a compliant intern logbook by no later than June 2024.
Failing which, to submit a letter co-signed by their principals and/or mentor confirming completion of the logbook and 12-month internship.
Upon qualifying for NQF4, write and pass the PDE4.
Consequences:You will not be allowed to renew your FFC when it expires.
 
9.     Existing candidates, who already acquired NQF4, or exempted against this, but failed to complete PDE4
Requirements to be met:Write and complete the PDE4.
Consequences:You will not be allowed to renew your FFC when it expires.
 
10. Aspirant candidate property practitioner with no formal qualifications and with no FFC from 1 July 2024.
Requirements to be met:
  • You can apply for an FFC and enroll in the new OC: NQF4 SAQA ID 118714 at the same time. This requirement also applies to candidates who applied for their FFCs before June 30, 2024, but are issued from July 1, 2024.
  • Enrol and complete the OC: NQF4 SAQA ID 118714.
  • Once you have completed the Knowledge and Practical modules, submit valid and certified proof of completion and/or statement of results to the PPRA.
  • Then register and receive your FFC as a candidate and immediately commence with the Workplace module. Which must be completed within 180 days of being issued an FFC.
  • Upon completion, submit a valid and certified proof of completion and statement of results.
  • Once the EISA is completed and the qualification awarded, a candidate becomes eligible to write PDE4.
  • Upon passing PDE4, they become non-principal property practitioners.
 

Information extracted from the Property Practitioners Regulatory Authority communique dated 14 June 2024 found here.

Disclaimer:

The information provided in this article is intended for general informational purposes only. While we strive to keep all updates accurate and up-to-date, the Property Practitioners Regulatory Authority (PPRA) regulations are subject to change, and may do so without prior notice. PropAcademy is not responsible for any inaccuracies that may occur, nor for any decisions made based on this information. We encourage readers to consult the PPRA directly or visit their official website for the most current information regarding educational regulations and compliance requirements.

FIC Compliance Notice for Estate Agency Firms

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Recently, the Financial Intelligence Centre (FIC) issued a notice to all estate agency firms, instructing them to complete and submit their Risk & Compliance returns by the 31st of May 2023.

All firms, branches, and franchises that have been issued a goAML Org ID number by the FIC, which serves as your FIC registration number, are required to submit these returns. This FIC registration number is essential for estate agency firms, branches, and franchises to register with the PPRA and obtain a Fidelity Fund Certificate (FFC).

The required document is known as Directive 6 of 2023. Firms registered from the 1st of April 2022 to the 31st of March 2023 are obligated to complete this directive. The link to this document was emailed to all estate agency firms last year and can be accessed through the provided link.

The urgency of submitting this form stems from the South African government’s efforts to remove the country from the Financial Action Task Force (FATF) grey list. South Africa was grey-listed in February 2023.

For South Africa to exit the FATF grey list, the FIC must ensure that its administration is current.

It is important to note that the majority of estate agency firms have neglected the request to complete this document.

Firms that continue to disregard this directive will be marked as non-compliant. It is highly likely that the FIC will share this information with the PPRA, which will then be compelled to prevent your agency from operating until Directive 6 has been submitted.

Directive 6 must be completed online using the following link.

For any queries, please contact the FIC’s compliance centre on 012 641 6000 or email [email protected]. For further information, visit www.fic.gov.za.

CPD: The Way Forward

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Revamping CPD: A New Direction for Estate Agents’ Professional Development

In December 2023, the Property Principal Practitioners Regulatory Authority (PPRA) issued a notice to all estate agents obligated to accrue Continual Professional Development (CPD) points as part of their ongoing education.

The key points of this notice include:

  • All payments, up to and including for 2023, must be current.
  • CPD points outstanding from before 2023 are no longer required.
  • Your CPD Personal Development Plan (PDP) for 2024 must be completed.
  • The previous categorisation of CPD points into Verifiable and Non-Verifiable is now discontinued.
  • Going forward, four modules per annum must be completed. These can be found on your MyCPD PPRA Portal once released.
  • These modules may be completed via your PPRA MyCPD Portal or with a provider accredited by the PPRA.

Who is eligible to complete CPD annual modules?

  • Full Status agents, known as non-principal property practitioners, are eligible.
  • All non-principal practitioners qualify for CPD the year following the achievement of their new non-principal status, as recorded on their PPRA MyPortal.
  • All principal property practitioners are eligible for CPD.

This notice marks a significant shift in the approach to CPD, simplifying the process while ensuring that all practitioners continue to develop their professional skills. It’s essential for all estate agents to stay informed of these changes and ensure they comply with the new requirements to maintain their professional standing and continue providing high-quality service in the real estate industry.

Get Qualified to Uphold Your Status & Avoid Disqualification

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As per revised clarity notice on 30 June 2023 deadline on compliance with education regulations published by the PPRA.

Given the ongoing hurdles, we feel the pressure placed on you as a Practitioner, so let’s clear things up.

WHAT MAKES ME COMPLIANT?

If you hold Intern/Full Status, then to be compliant within the 24 month period, the following must be marked as competent:

  1. Internship Logbook
  2. NQF4
  3. PDE4

If you hold Principal Status, then to be compliant the following must be marked as competent:

  1. Internship Logbook
  2. NQF4
  3. PDE4
  4. NQF5
  5. PDE5 (within 24 months of holding Principal Status)

WHO IS THE COMPLIANCE DEADLINE FOR?

Candidate/Intern’s who have not complied within 24 months from their first FFC issue date.

Full status agents who have not been found competent in the NQF4 or PDE4.

Principal’s who have not been found competent in the NQF5 or PDE5.

Unless they have proof of exemption.

WHAT HAPPENS IF I AM NON-COMPLIANT?

If you were non-compliant on the 30th June 2023, then you will be disqualified and automatically blocked on the PPRA portal effective 03 July 2023. This means that you will not be issued with a further FFC when you wish to renew.

Your current FFC remains valid and you can continue to trade until it expires.

SO, HOW DO WE FIX THIS?

This is how you lift your disqualification block.

Submit your application within 60 days of disqualification, requesting an extension of 6 months within which you must become fully compliant. If you do this within 60 days there will be no penalty fee.

The application needs to be made by use of the affidavit which you can download here.

The affidavit must be accompanied with a letter signed by the applicant, together with supporting documents on how the applicant will ensure they will comply within the extended 6 month period.

The application must be submitted to [email protected]

When the PPRA receive the application, they will consider it, approve or reject it, and advise the applicant of the outcome within 30 days.

If the application is approved, the disqualification will be removed and a letter issued granting the extension of 6 months.

The applicant has this time period to become fully compliant.

If the application is declined, or if an application was never made, then the practitioner will remain blocked until they are compliant and have notified the PPRA of their compliance.

In such instance, and if the practitioners FFC has expired, the practitioner may apply to register as a candidate property practitioner for the respective sub-sector in terms of Regulation 33 of the PPA.

If the practitioner complied fully before their FFC expires, and within the 6 month period (from the date of disqualification letter) the block will be removed.

If you fail to apply within 60 days of being notified of your disqualification, and are still disqualified at your FFC expiry date, you will not be issued with a FFC at your current practicing status until you have fully complied and you will have to pay a penalty.

Practitioners who cannot comply with the extension process, or meet the education requirements, may, when their current FFC expires, apply for an FFC as a candidate practitioner and must then comply with the candidates education regulations.

Old and new terminology:

Intern Status – Candidate Property Practitioner

Full Status – Property Practitioner

Principal Status – Principal Property Practitioner

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Disclaimer: PropAcademy has prepared these notes to the best of their knowledge and have taken advice from various experts.  PropAcademy are indemnified against any misrepresentation or error that may occur herein.

Recognition of Prior Learning & ServiceSETA Rules & Regulations

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How do I know that an ethical Accreditation Centre is representing me?

It is difficult to turn down a “cheap” course – how are you to know that there are providers in the industry selling cheap RPL courses to agents who do not qualify and cannot complete them?

Certain costs must be carried out when delivering a qualification.  Your course must be current with the legislation of that industry, and it must be assessed by an ETDP/SSETA accredited Assessor who must be paid to mark your assignments and liaise with you directly to ensure you understand how to present any remedial work.  Then the assessor hands over your competent portfolio to an accredited Moderator.  The moderator, in turn, must take a sample of learners from a group and then check that the assessor has assessed correctly and that the candidates’ answers are authentic, sufficient, valid and current.  Only then will SSETA confirm a visit to verify the group and pass certification.  This process costs money to be carried out efficiently and effectively.  Don’t be caught out!

Are there unethical Accreditation Centres and Providers in the marketplace that I must avoid?

In any industry, you will find stakeholders who want to cut corners to the detriment of the consumer.  Just ask the correct questions and ensure that the provider is an approved Accreditation Centre and has the backup to ensure your speedy certification.

What could be the repercussion if I use an unethical provider of an RPL qualification?

The most important repercussion is how it will affect your pocket in the long term and your compliance with the PPRA.  Often, candidates dump the course they have purchased and re-purchase through another provider to achieve compliance.  Be aware and ask questions.

What determines that I am eligible for RPL?

Recognition of Prior Learning is just that.  It can be recognised through experience, or it can be recognised through past qualifications, and the regulatory bodies determine these parameters.

You will comply if you have been a property practitioner for at least a year and have knowledge of the industry, proof of training and experience in various property market sectors. At our PropAcademy Assessment Centre, we supply you with an online quiz to give you a quick indication of what is required and then ask for evidence which we examine.

We ensure that you understand that RPL is a course where you will have to prove to the SSETA that you have been in the industry and understand the processes and requirements of a full-status property practitioner.  You will be asked to provide proof of contracts that you have completed and complete quizzes and assignments.  Because you are an RPL candidate, you don’t receive learner guides, but at PropAcademy, we throw those in case your memory needs reminding of a certain industry specialisation.  For example, you may be a rental agent and need to know more about sales.

How does RPL help me complete my course faster?

RPL does speed up the process. Because you are not “learning” the industry but only providing evidence that you understand the industry, the course can be done half the time.  Remembering, though, the assessment and certification process takes at least three to four months after you have been found compliant.

It must be noted that even though you may be eligible for RPL, you must follow the SAQA pre-requisite to complete RPL in that qualification.  If you are applying for NQF4, 59097 Real Estate, you must have mathematics and a second South African language at the matric level.  PropAcademy supplies easy bridging courses for both subjects.  If you apply for NQF5, 20188 Real Estate, the pre-requisite has an NQF4 59097 or exemption.

PPRA/EAAB Extension of the Education Requirements Compliance Deadline

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New Deadline

The PPRA/EAAB has extended the deadline from 31 January 2023 to 30 June 2023. All candidates must meet this deadline as it will not be extended again.

Who is the deadline for?

When you receive your first FFC you must submit your Logbook within the first 12 months, and within a total of 24 months [from FFC issue date] you must be found competent in your NQF4 and your PDE4.

You will then need to comply with CPD the year following the year you received your PDE4 results.

If you then complete your NQF5 and registered as a Principal, you have 2 years in which to be found competent in your PDE5.

If you held Full/Principal status without completing the educational steps, then you need to confirm which courses you need to complete to comply with the deadline.

If you have not stuck to these timelines, then you will need to do so by 30 June 2023.

For a breakdown of the education process, download this free guide.