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Major Changes in the South African Real Estate Industry

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Are you considering becoming a registered property practitioner in South Africa?

On 1 July 2024, the South African real estate industry witnessed significant changes that have redefined the landscape for Property Practitioners. The transition from legacy courses to new Occupational Qualifications marks a new era in professional development and certification within the industry.

Whether you’re new to the field or already have some qualifications, this guide will help you navigate the process of becoming a Property Practitioner.

For those with no prior qualifications or Equivalency Exemptions from the PPRA, here is a step-by-step guide to becoming a registered Candidate Property Practitioner:

  1. Register for an FFC at the PPRA
    • Required documents: a letter of employment, a certified ID, and the agency pin (usually starting with an “F”).
    • Condition: Enroll in the occupational qualification within 180 days.
  2. Enroll with an Accredited Skills Development Provider
    • Choose a provider like PropAcademy to complete your Occupational Certificate: Real Estate Agent.
  3. Complete the Knowledge and Simulated Practical Modules
    • These modules can be completed independently. Together, they provide 75 credits and should take approximately 3 months to complete.
  4. Register for an FFC if Not Done Previously
    • Provide certified proof of completion of the Knowledge and Simulated Practical Modules.
    • You will then have 180 days to complete the Work Experience Modules.
  5. Complete the Work Experience Modules
    • This must be done under the supervision of a Mentor or Principal you will have 6 months to complete this.
  6. Write the EISA
    • After completing the Work Experience Modules, you are eligible to write the External Integrated Summative Assessment (EISA).
  7. Qualification Award
    • Upon passing the EISA, your qualification will be recorded by the PPRA, making you eligible to write the Professional Designation Exam (PDE) 4.
  8. Pass the PDE 4
    • After passing this exam, the PPRA will award you the professional designation PPRE.
    • Keep in mind you would have to write this exam before you can renew your FFC again.
  9. Upgrade to Non-Principal Property Practitioner
    • You will also be upgraded from a Candidate Property Practitioner to a non-principal Property Practitioner.

If you have formal qualifications or Equivalency Exemptions from the PPRA, follow these steps to register as a Candidate Property Practitioner and obtain a Fidelity Fund Certificate (FFC):

  1. Register for an FFC at the PPRA
    • Gather the necessary documents: a letter of employment, a certified ID, and the agency pin (typically starting with an “F”).
  2. Commence Practical Training
    • Start the 6 practical training modules in the workplace immediately after receiving your FFC.
    • Training must be conducted under the direct supervision of a Mentor or Principal.
  3. Complete Practical Training Modules
    • Finish the 6 practical modules within 180 days from the date your FFC is issued.
    • Submit a confirmation of completion of these modules to the PPRA.
  4. Submit Confirmation of Completion
    • The PPRA must receive and approve the confirmation letter of completion of the 6 practical modules.
  5. Write the PDE 4
    • Once the PPRA approves your completion of the practical modules, you are eligible to write the Professional Designation Exam (PDE) 4.
  6. Earn the PPRE Designation
    • After successfully passing the PDE 4, the PPRA will award you the professional designation PPRE.
  7. Upgrade to Non-Principal Property Practitioner
    • You will be upgraded from Candidate Property Practitioner to a non-principal Property Practitioner.

Final Thoughts

Navigating the process to become a registered property practitioner may seem daunting, but with the right steps and timely actions, you can achieve your career goals. Stay organized, keep track of deadlines, and take advantage of resources like accredited Skills Development Providers to support your journey.

Good luck on your path to becoming a certified Property Practitioner in South Africa!

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.

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

Online Convenience cc t/a PropAcademy ©

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.

Who needs a Fidelity Fund Certificate (FFC)

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Any person facilitating or providing a service in the sale or lease of property in any way and does not use the services of a property practitioner must hold a Fidelity Fund Certificate (FFC) through the Property Practitioners Regulatory Authority (PPRA) formally known as the EAAB. Business undertakings shall include any activity, whether sold as a whole or going concern, or as part of a business, or by means of transferring the beneficial ownership.

“A property practitioner is any person who, for the acquisition of gain, directly or indirectly, on the instructions or on behalf of another:

  • sells, purchases, manages or publicly exhibits for sale any property or business undertaking;
  • leases or hires or publicly exhibits for hire any property or business undertaking;
  • collects or receives money payable for a lease;
  • provides, procures, facilitates, secures or otherwise obtains or markets financing for or in connection with the management, sale or lease of a property or business undertaking; and
  • renders services as an intermediary to affect the conclusion of an agreement to sell or let a property or business undertaking (except where this is not done in the ordinary course of the person’s business; where a natural person does it in their capacity, or where the person is an attorney, candidate attorney or sheriff).

Thus, the definition extends well beyond estate agents. It includes:

  • Auctioneers
  • Property developers (not natural persons selling their own property)
  • Property managers
  • Franchisees
  • Providers of bridging finance and bond brokers fall under this ambit but have applied for exemption.  Financial institutions are not included as they are covered under their Act.

Anyone who falls within the ambit of the definition of a “property practitioner” is required under the Property Practitioners Act no. 22 of 2019 to register as a property practitioner and obtain a certificate issued by the Fidelity Fund on an annual basis. Refer to Section 47(1) of the Act. Conveyancers are prohibited from paying any money to a property practitioner without receiving a copy of that property practitioner’s valid Fidelity Fund certificate.

Note: The PPA will not apply to the following persons who do not do any of the above-listed activities in the ordinary course of their business;

  • Persons who sell their property
  • An attorney
  • A candidate attorney
  • A sheriff.”

Often the question of an “administrator” pops up – why should they need a FFC if they do not deal directly with the public?  They don’t. Why do they need a FFC if they are drafting lease or sale agreements? They don’t, as long as they are not signatory to the contract, and it is being overseen by the practitioner that they drafted it for.   But if they are dealing with the public’s money or with the agency trust account then they will need an FFC.

Another question arises mainly from Managing Agency firms – why do my administrators have to become fully qualified property practitioners and hold an FFC?  Well, the same applies.  If they are not dealing directly with the public, if they are not dealing with the Trust Account then they do not need an FFC as they are performing a purely administrative function.