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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.

EAAB: Agents need to comply with education regulations or be disqualified

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MAIN IMAGE: Courtney McKenna, operations manager of PropAcademy; Jan le Roux, CE of Rebosa

A policy approved by the EAAB applicable to interns, non-principal or principal estate agents, has granted an extension of a time frame within which they can ensure compliance with the board’s education regulations.

The EAAB’s practise notice (ETD01/2020) states that these regulations do not apply to persons who want to enter the estate agency sector for the first time or to persons who have never previously applied for, or been issued with, a valid Fidelity Fund Certificate (FFC) by the EAAB. By law estate agents are required to have a valid FFC issued by the EAAB for them to practice.

The notice is applicable to estate agents holding full status FFC’s despite having failed to comply with the requirements of the standard of training of estate agents.

“The  extension is welcome and a deadline  for interns very necessary. It will, however, be impossible for the EAAB to cope with the  increased volumes as it is not coping at present “, says Jan le Roux, CE of Rebosa.

Interns

In the case of interns, the notice is applicable to persons who have continuously been registered as intern estate agents for a period exceeding twenty-four months. They are granted time until 30 June 2022 to submit a completed intern logbook to the EAAB, duly signed off by both the intern agent and the principal or qualifying mentor estate agent. This will serve to assess if the intern was initially issued with an intern FFC during 2013. Alternatively, the intern can submit a letter from a principal of the estate agency where the intern estate agent served the internship to confirm the successful completion of the twelve-month internship period.

The intern should also be certificated against the NQF Level 4 real estate qualification and have passed the PDE 4. Interns who fail to comply with these regulations by 30 June 2022 will be ipso facto rendered disqualified in terms of the Act.

In the case of intern estate agents who have not passed the PDE within two years after having been certified against the NQF Level 4 real estate qualification, are granted until 30 June 2022 to enrol for and pass the PDE 4. Failure to pass will lead to disqualification.

Estate agents

Registered full status non-principal estate agents who have not been certified against the NQF level 4 real estate qualification or who have not passed the PDE45 but who hold a valid FFC, also have until 30 June 2022 to be certificated against the NQF Level 4 real estate qualification and to pass the PDE. If they fail to do so by 30 June 2022, they will be ipso facto rendered disqualified.

Principals

The same regulation applies to registered full status principal estate agents holding a valid FFC but who have not been verified against NQF level 5 real estate qualification or who have not yet passed PDE 5 while failure to comply will also lead to ipso facto disqualified.

Consequences

The consequences of being rendered disqualified in terms of the act, will lead to the person being blocked and unable to renew their FFCs for 2022 or any ensuing calendar years and pay an administrative penalty of R1000.00. The penalty must be paid before any further FFCs will be issued to them.

Agents in these situations can apply to the EAAB under the proviso to section 27 of the Act, for the issue of an FFC for the 2022 calendar year if they can convince the board that it will be in the interest of justice to issue the FFC. This application must be lodged with the EAAB within a period of sixty days after the person concerned is notified of the disqualification. Failure will render the person disqualified.

A disqualified estate agent will remain blocked until:

  • The EAAB has received a substantive application from the applicant in the form of an affidavit, together with all supporting documents necessary or required to enable the application to be duly considered, in which the applicant provides sound and valid reasons as to why the issue of a FFC will be in the interest of justice and
  • the application has been duly considered and approved.

On approval, the estate agent may be unblocked and granted a maximum further six months, calculated from the date of the unblocking of the application, within which to comply with any outstanding educational requirements in terms of the education regulations. No further extensions of time will be granted to the applicant estate agent.

Failure by an applicant to comply with any outstanding educational requirements in terms of these education regulations within the set period, will render that estate agent ipso facto deregistered as an estate agent.

Estate agents who have been deregistered by the EAAB, may reregister, but only in the capacity of an intern estate agent. They will be required to comply with all the requirements pertaining to an intern estate agent. This Practice Note came into effect on 1 July 2021.

Courtney McKenna, operations manager of PropAcademy, an accredited provider of regulated estate agents’ qualifications, education and an RPL assessment centre, welcomes this Practice Notice with open arms and says it is way overdue and will professionalise the industry.

“The EAAB legislated education some 13 years ago but they never fully implemented their checking policies to police this process, resulting in property practitioners trading as full status or principal status agent as reflected on their fidelity fund certificate, where in fact they have not complied with education requirements and intern agents remaining at that status for years past the cut-off date.

“Part of the reason that property practitioners have not complied with education can be put down to their complacency with the Board. The Board’s administrative systems have been unable to issue FFCs timeously, unable to produce regulated CPD courses timeously and the question is asked: “how will they be able to monitor my education status?”

McKenna says all property practitioners must be compliant by end of June 2022 which is going to be a hard task for some. However, there is relief in recognition of prior learning (RPL), where agents will be able to fast-track their learning, terms and conditions apply.

Written by
Danie Keet (Property Professional)

Real Estate is Leading the Way in SSETA Digital Strategy (October 2020)

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Real Estate is Leading the Way in SSETA Digital Strategy

In a move that reflects the Services SETA’s determination to embrace the benefits of the fourth industrial revolution, SSETA is launching its first ever online learning program this month in association with Durban-based real estate elearning provider, PropAcademy.

This pilot programme, which forms part of the SSETA’s eLearning Adoption Project, will enable 15 real estate students to complete a four-week course in property valuations from the comfort and convenience of their homes or offices at a time that suits their busy schedules.

The course, which carries 12 SAQA credits, was compiled by PropAcademy and incorporates a range of elearning materials including videos and webinars. Students will be able to access the course via the SSETA’s Learner Management Information System (LMIS); and their work will be assessed and moderated by PropAcademy’s team of real estate training professionals. The LMIS is an online interactive platform where learners will be issued with their own portals where they can complete their course, answer questions and upload required evidence and documents.

The project is headed by Tumelo Ngwako, acting accreditation manager at SSETA and head of its elearning implementation committee. Dumisani Zinondo, from ImplementX Analytics whose expertise includes aiding and implementing elearning strategies and solutions, has been appointed to lead the project. ImplementX Analytics work closely with Xenothan Hojem of Synrgise who runs the learning platform.

The project is part of the SSETA’s quest to continuously improve its value proposition to its stakeholders. The aim of this pilot project is to transition the capabilities of the Services SETA to an operating model that includes accredited elearning or online learning programmes.

Real estate professionals work long and variable hours and this type of learning will benefit them enormously with the convenience and accessibility that online learning provides. SSETA is therefore kicking off the initiative with a pilot project in the real estate industry.

PropAcademy CEO Janet Alexander said the company was honoured to have been selected to partner SSETA in this new and exciting venture.

“As a South African pioneer in the provision of online courses for real estate professionals, including those aimed at qualifications regulated by the Estate Agency Affairs Board, PropAcademy has seen the popularity of online learning explode within the industry. We are therefore delighted with the brave progressive decision by SSETA to investigate the potential of eLearning. We have seen first-hand how it increases access to training and advancement for all individuals, including those living outside the major metropolitan areas where most on-site training courses take place,” she said.

How to Become a Registered Property Valuer

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How to Become a Professional Property Valuer

There are many courses on the market which will help you understand the functions of a Property Valuer, but they do not automatically qualify you as a Registered Professional Property Valuer.  To register as a valuer with a financial institution, as an example, you must be a member of  SACPVP – South African Council for the Property Valuers Profession.

SACPVP regulates their members education, requires that the applicant passes their set examination, adheres to their code of ethics and keeps up with property legislation through obtaining annual Continual Professional Development (CPD) points.

Members must pay an application fee, registration fee and then an annual renewal fee.  There are different types of registrations:

Candidate Valuer: Your application requires that you are registered with the relevant tertiary institution for an accredited Valuation programme.

Professional Associated Valuer: You must supply a record of experience in the valuation field for the admission examination.  You must also supply proof of qualifications and attendance to the Practical Work-school.

Professional Valuer: A Professional Associated Valuer can apply to become a Professional Valuer  and to write the admission examination for Professional Valuers long as he/she has:

  • sufficient experience;
  • been a registered member of SACPVP for at least 3 years and
  • has a recognised four year degree

To qualify as a professional, the following is also required

  • One of the Examinations/ Qualifications mentioned below
  • Practical Work-school (offered by various service providers recognised by SACPVP)
  • Admission Examination for Professional Valuers or Admission Examination for Professional Associated Valuers.

Accredited Educational Programmes

ACCREDITED EDUCATIONAL PROGRAMMES, PRESCRIBED OR RECOGNISED EXAMINATIONS: [SECTION 20(2)(a)(ii)]

The following educational programmes have been accredited to offer examinations recognised by Council:

(a) University of Cape Town (Department of Construction Economics & Management), any one of the following · BSc together with BSc (Hons) Property Studies (4 year degree), · Post Graduate Diploma Property Studies, or · MSc Property Studies Full Accreditation

(b) University of the Witwatersrand (Wits University) · BSc Property Studies (4 year degree) · Post Graduate Diploma in Property Development and Management · MSc in Property Development and Management Full Accreditation

(c) University of Free State Master of Land and Property Development Management M.L.P.M. (M Prop): Property Valuation-Conditional Accreditation

(d) University of Pretoria (Department of Construction Economics) · MSc: Real Estate, or · BSc (Hons) Property Studies together with BSc Real Estate Full Accreditation

(e) University of Johannesburg B Com Hons (Property Valuation & Management) together with one of the following: · B Com Finance; · Advanced Diploma in Property Valuation & Management; or · Bridging Course in Property Valuation & Management (Refer to the University) Full Accreditation

(f) University of South Africa- (UNISA) National Diploma Real Estate (Property Valuation) Qualification discontinued end of academic year 2011

(g) Cape Peninsula University of Technology · National Diploma Real Estate (Property Valuation)– new enrolment until 2017- Full Accreditation · Diploma Real Estate from 2018 Academic year—Offered as both contact and distance learning (Accreditation visit pending until 2021)

Disclaimer:  To ensure that your information is current we suggest that you access the SACPVP website highlight “Registration”, click “How to Register” and read through the processes.

Courses

The Authority Exemption for NQF Level 4 & 5 (RPL) Course

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Recognition of Prior Learning (RPL) Authority Exemption Application

The Authority Exemption for NQF

RPL AUTHORITY Exemptions

Click here to find out if you are exempt from the NQF 4/5 in Real Estate.

  1. Further Education and Training (FET) National Qualification Forum (NQF) Level 4: Real Estate – SAQA ID 59097

And

  1. National Certificate (NC) Real Estate (NQF) Level 5 : Real Estate – SAQA ID 21088

To apply for this equivalency exemption, you need to pass this quiz, and supply documents to PropAcademy who will compile your portfolio and apply for your exemption on your behalf.

From the get go they were extremely responsive and gave 5 star service. The course I took was supposed to take 6 weeks, I got the exemption and results within 2 weeks from submission. I will suggest their services to anyone wanting to enter the real estate game.

I would like to put it in writing how grateful I am for your support of my exemption and the hours you put in to getting me to send it all in!! As mentioned, I have recommended at least 12 people to your company and that was before this wonderful news. Seriously, thanks so much. It’s an immense help and the work you do is very much appreciated.

Thank you very much for your kind response.  You are one of the most efficient people I have come across.  Thank you for your service and dedication with regards to this matter.

Further to our (various) conversations yesterday, my business partner and I would just like to thank you sincerely for your very helpful assistance. We had been trying to confirm the situation around the over-60’s exemption via the EAAB website and by calling them for days with no success, and chatting with you has given us a foundation from which to proceed and was a breath of fresh air.

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If you think you qualify for The Authority Exemption for NQF Level 4 & 5 (RPL) Course, click the “Take this Course” button below to take a short quiz. If you pass this quiz, you will be allowed to purchase our course.