Everything you need to know about the Property Practitioners Act
Category News
At the beginning of this month, the real estate industry in South Africa took a step into its future with the passing of the Property Practitioners Act. This piece of legislation ensures that the industry is reflective of the country's demographics. It also paves an easier path for those wanting to become property practitioners and provides extra protection for those buying or leasing properties. Jawitz Properties takes a look at the Property Practitioners Act and what it means for those entering into property transactions, as well as for those in the industry.
Mandatory disclosure forms
If you are looking to buy or rent a new property, you get some extra peace of mind brought to you by the new Property Practitioners Act. It is now mandatory for anyone selling or renting their property to you to fill in a comprehensive list of all the property's defects. This document is called a mandatory disclosure form, and it must be signed by the seller, the buyer and the property practitioner facilitating the sale or lease. The Act makes it illegal for a property practitioner to accept a mandate from a seller or landlord unless the mandatory disclosure form has been completed.
The Act requires this list to include both patent and latent defects. A patent defect is something easy to see, like an obvious crack in a wall. A latent defect, on the other hand, is something that an ordinary person may not see when walking through a property, like a leaky roof or faulty geyser. While it is up to a property practitioner to ensure that a mandatory disclosure form is present, it's up to the property owner to ensure that this form gets filled in honestly and comprehensively.
The spirit of the Property Practitioners Act is consumer protection, and part of this is ensuring that a buyer or lessee is aware of every issue or problem related to the property. If a seller does not disclose (or tries to conceal) a defect that they knew about, they run the risk of later being sued by the buyer.
Changes for real estate professionals
The good news for those wanting to become property practitioners is that the process is now far quicker. Once you have written the exam to get your Candidate Property Practitioner Certificate, you can then write the next exam within six months, which makes the process much faster than it used to be. Once you have passed your Professional Designation Examination (PDE), you can start selling property under supervision in as little as six months, as long as you have also completed certain practical modules. This is a far cry from the old dispensation, which required would-be agents to complete year-long internships and pricy NQF4 exams. We look forward to the release of the exact qualification information in this matter.
Another positive change for real estate professionals is that fidelity fund certificates (FFCs) will now be valid for three years instead of one. In addition, an agent's FFC is no longer tied to a specific position. It is now possible for an agent to move to a different agency or be promoted without having his or her existing FFC invalidated.
Fast facts about the Property Practitioners Act
- The Act has created the Property Practitioners Regulatory Authority, which replaces the Estate Agency Affairs Board.
- This legislation affects everyone involved in real estate transactions - not just real estate agents. This includes bond originators, property managers and various other property professionals.
- Transformation is one of the most significant elements of the Property Practitioner's Act, which has set up a special fund to support previously disadvantaged real estate professionals.
Jawitz Properties #RealPartners are familiar with every element of the Property Practitioners Act. You can trust us to ensure that every part of your property transaction is carried out according to the letter of the law. Contact us today if you're interested in buying, selling or renting out property.
Author: Jawitz Properties
