The new Property Practitioners Act fails to define how transformation should take place
THE PROPERTY Practitioners Act of 2019 signed into law by President Cyril Ramaphosa was yesterday broadly welcomed by estate agents, but did not adequately define how transformation should take place in the industry.
The act, signed on Wednesday, repeals the 43-year-old Estate Agency Affairs Act, and is aimed at improving the functioning of the property market, which includes regulating the buying, selling and renting of land and buildings. It aims to put in place better monitoring mechanisms, including requiring inspectors to obtain warrants to enter premises.
It was also aimed at ensuring “seamless processes and professional standards in the real estate industry”, said South African Housing and Infrastructure Fund chief executive Rali Mampeule.
He said the act was “a progressive step in the right direction for the country and it will play a crucial role in addressing other issues within the industry”.
Among other innovations, the act establishes a Property Practitioners Regulatory Authority and provides for the appointment of the board of this authority. This will be the continuation of the Estate Agency Affairs Board.
Seeff Property Group chairperson Samuel Seeff said his initial feeling was that the new act should be welcomed, but he had some reservations about aspects of it.
These were that while the preamble stated that the act should aid transformation, there was very little in the way of practical measures to do so in the act itself.
A problem in the estate agent industry in the past has been its ability to attract and retain black estate agents, and there was no assistance or incentives for the industry in the act.
Adding to the uncertainty was the targeted levels of black economic empowerment (BEE) in the industry, as the regulations on BEE in the industry had not yet been finalised, he said.
Another aspect that might be challenged in future was the fact that the definition of a property practitioner in the act was far too wide, said Seeff.