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.
