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Property Practitioners Act, 2019 (Act No. 22 of 2019)

Regulations

Property Practitioners Regulations, 2022

Chapter 2 : Transformation and Regularisation

3. Transformation and Regularisation

 

3.1 The Authority shall appoint any suitably qualified independent person, persons or entity, subject to the approval of the Minister, to manage the Property Sector Transformation Fund as contemplated in section 21 of the Act.

 

3.2 The Property Sector Transformation Fund must allocate and make available no more than 75% of the grants received by the Property Sector Transformation Fund during each year for the following purposes—
3.2.1 enterprise development and support programmes as defined by the Property Sector Charter Code that focus on capacitation and enterprise support for historically disadvantaged property practitioners;
3.2.2 support of existing SMME’s owned by historically disadvantaged property practitioners operating within the property sector, inclusive of support to purchase part or all of the interests in existing business property practitioners;
3.2.3 promotion of the standard of training and development of historically disadvantaged property practitioners aligned with the skills development objectives as defined by the Property Sector Charter Code;
3.2.4 regularisation of the affairs of historically disadvantaged property practitioners to promote compliance with the Act;
3.2.5 supporting existing historically disadvantaged property practitioners to become principal property practitioners and owners of business property practitioners;
3.2.6 facilitation of ownership of and participation in property investment enterprises by historically disadvantaged individuals; and
3.2.7 enabling the transformation of property ownership in South Africa by providing grant support to historically disadvantaged property practitioners who are in the business of developing residential properties in the affordable and secondary housing markets.

 

3.3 The Authority must—
3.3.1 develop guidelines including assessment criteria to qualify for the grants stipulated in regulation 3.2;
3.3.2 develop guidelines for the regularisation of the affairs of historically disadvantaged property practitioners as contemplated in subregulation 3.2.4;
3.3.3 develop guidelines for the support of historically disadvantaged property practitioners in becoming principal property practitioners and owners of business property practitioners as contemplated in subregulation 3.2.5;
3.3.4 as part of the foregoing guidelines develop a means test to be applied in support of historically disadvantaged property practitioners under the provisions of regulation 3.2; and
3.3.5 monitor and publish an annual report on the outcomes and beneficiaries of the Property Sector Transformation Fund.

 

3.4 For the purposes of regularisation—
3.4.1 an applicant shall not be precluded from registering as a property practitioner or obtaining a Fidelity Fund certificate under the Act in consequence of such person having been in any way non-compliant with any of the provisions of the previous Act unless—
3.4.1.1 the Authority is able to show that such applicant is on the effective date subject to criminal prosecution or disciplinary proceedings which has or have commenced in respect of a failure on the part of such applicant to comply with any provisions of the previous Act or its regulations; or
3.4.1.2 the Authority is able to show that such applicant had a Fidelity Fund certificate issued under the previous Act withdrawn as a result of a failure on the part of such applicant to comply with any of the provisions of the previous Act or its regulations; and
3.4.2 an property practitioner who failed to register as an "estate agent" under the previous Act or failed to obtain a Fidelity Fund certificate under the previous Act when they were required to do so, shall not be subject to prosecution or any disciplinary action in respect of such failure by the Authority provided that such person registers with the Authority within a period of no more than six months of the effective date and subsequently obtains a Fidelity Fund certificate in accordance with the provisions of the Act and these regulations within a period of no more than 12 months following the date upon which such person registers with the Authority.

 

3.5 The Authority shall be entitled to from time to time in good faith consultation with the representative bodies of the industry or industries concerned, take steps in respect of and arrange for the regularisation of the affairs of, the property practitioners in such industry or industries in order to enable the property practitioners concerned to bring themselves into compliance with the provisions of the Act and the regulations.

 

3.6 The Property Sector Transformation Fund must allocate and make available no more than 5% of the grants received by the Property Sector Transformation Fund during each year for the purposes of consumer education and in which regard the Authority must take steps to educate consumers about their rights under the Act and the regulations. For such purpose the Authority must develop consumer education programs, host interactive roadshows and conduct seminars and physical roadshows annually. At least one of the foregoing events must be held once per annum in each provincial capital and each regional primary business hub, with subsequent events during such year in the province concerned being held in other places so as to maximise consumer education across the province. The Authority must monitor the progress of consumer education and publish an annual report on such progress and details of its activities under this regulation 3.4.