Managing Agents and the PPRA

Managing Agents and the PPRA – Simplified

Why do Managing Agents, who do not sell or rent properties, need to register with the Property Practitioners Regulatory Authority, and why must they hold a Fidelity Fund Certificate?

All property practitioners are required to register with the PPRA and hold a FFC. Property practitioners are defined as individuals who interact with the public in dealings related to immovable property. The PPRA regulates property practitioners and mandates the holding of a FFC to protect the public against any malpractices by a property practitioner through the FFC insurance.

Anyone liaising with a Landlord or Seller, a Tenant or Buyer during a property transaction must hold an FFC. Similarly, anyone who has access to or transacts with Buyer or Tenant funds, held in the firm’s trust account, must also hold an FFC.

Thus, a Managing Agent is considered a property practitioner.

Given that not all specialised property fields involve selling and renting properties, the PPRA issues FFCs specific to each specialised industry. These specialised FFCs require the completion of a qualification specific to their function. Currently, ServicesSETA and the PPRA are developing a qualification for Managing Agents, expected to be ready by late 2024. A Code of Conduct for Managing Agents is also under development.

Who in a Managing Agency must hold an FFC?

  • All administrative staff involved in property management;
  • Portfolio managers who attend meetings or process payments;
  • Bookkeepers who manage the trust account and have access to the bank account of the body corporate;
  • Directors overseeing operations.

What type of FFC must a Managing Agent hold?

  • A specific Managing Agent FFC;
  • If the agency or property practitioner also deals in sales or rentals, they must also hold a Real Estate FFC.
  • Any previously held FFC will be cancelled, and a new one will be issued.

When are Managing Agency FFCs available?

The PPRA has been issuing Managing Agency FFCs since December 2023. All Managing Agents are required to apply for a Managing Agency FFC immediately.

How do I apply for my Managing Agency FFC?

Under the Property Practitioners Act 22 of 2019, each category of real estate must have a separate FFC and qualification. To obtain your Managing Agent FFC, you must:

  • Complete the E1 Exemption form and request an exemption from Regulation 33;
  • Complete the FFC application form on the PPRA website, follow the prompts, and attach the required documents.

Yes, there is a charge every time an FFC is issued according to the Act and Regulations. These charges are listed on the PPRA website.

What prerequisite is required to register for the Managing Agent qualification?

As the course is still under development, prerequisites have not yet been disclosed. It is anticipated that the prerequisite will align with the NQF4 Real Estate 118714, which requires holding an NQF3 or Grade 11 certificate.

How do I apply for an exemption against the Managing Agent qualification?

The PPRA will consider exemptions for individuals holding a qualification in Managing Agency or similar. A policy will be provided once the qualification has been developed.

5 replies
    • Courtney
      Courtney says:

      Hello Makgola
      That’s awesome. You would need to reach out to agencies in your area to get started. Once you are registered as a Property Practitioner, we will need to get you educated! For more information we have blogs to read or you can click on the contact us page and submit your details for us to call you back.

      Reply
  1. Malose Frans Kekana
    Malose Frans Kekana says:

    Good day,

    I am currently studying to be one of practitioner.
    Yes i am interested in joining the meeting or e-learning.

    Thank you.
    Malose

    Reply
    • Courtney
      Courtney says:

      Good day Malose

      That’s excellent news. Please join our webinars to find out more about compliance. PPRA Education Compliance | March

      You’ve been invited to:
      PPRA Education Compliance | March
      This webinar will cover the basics of which course you need to complete and by when in order to comply with the PPRA Education Regulations. So, if you’re a Candidate looking to get compliant, or a Principal looking to maintain your status, then this is the webinar for you. Principals are encouraged to invite their practitioners to this webinar, so they can ensure they are on the right track. We will discuss Logbooks, NQF4, PDE4, NQF5, PDE5, Qualification Based Exemptions and SSETA.

      Why should you join:
      Join this webinar on real estate education compliance and it will benefit you by keeping you informed, ensuring legal compliance, enhancing your skills, building professional relationships, and ultimately, contributing to your success in the real estate industry.
      Thu, Mar 07, 11:00 AM – 12:00 PM (CAT)
      We look forward to having you attend the event!

      Make sure you subscribe to our updates (website – subscribe on top right of page). Then you will be notified and asked to register.

      https://www.propacademy.co.za/subscribe/

      Reply
  2. Willem van Schalkwyk
    Willem van Schalkwyk says:

    I am both a rental agency and a managing agent. I have an existing rental agency FFC. The latest communication received from the PPRA is this:
    EXISTING MANAGING AGENTS HOLDING FFCs AS ESTATE AGENTS

    We are actively developing the system to accommodate the registration of managing agents who currently hold FFCs as estate agents, both for firms and natural persons. This development phase aims to facilitate a smooth transition for managing agents, allowing them to be linked in multiple industries or migrated to the managing agent’s subsector. We will advise when this transition goes live.

    Thank you for your attention and support in this endeavour.

    16 December 2023

    Must I still apply for exemption now or wait until their transition goes live to transfer me to both sectors?

    Reply

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