The Property Practitioner’s Act is a brand-new piece of legislation that serves to replace the previous Estate Agency Affairs Act.
Although the Act has been signed into law, it has not yet been put into effect and will commence on a future date which is yet to be decided on.
This new Act sets out to regulate all affairs related to property practitioners in South Africa, as well as to provide for transformation in the property sector and to further support consumer protection.
Before the Act can come into full effect, the Minister must still publish a code of conduct for property practitioners and specify what the training requirements will be to qualify as a property professional.
The term “property practitioners” does not refer exclusively to real estate agents, but also all individuals involved with the sale and purchase of immovable property in South Africa.
According to the Act, this includes any natural or legal person who acts on behalf of another person in his or her ordinary course of business:
Many are wondering if a transformation in the real estate sector is necessary. The following are points which highlight the need for transformation as implemented by the new Property Practitioner’s Act:
With the new changes made to the legislation, it’s only a matter of time before the Property Practitioner’s Act comes into force.
This will mean that the previous Estate Agency Affairs Act will no longer regulate the operations of property practitioners in South Africa.
For more information about the new legislation, or to find out more about property law in South Africa, please contact our attorneys in Johannesburg or Cape Town.
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