High Court Dismisses Challenge to Estate Fees on Property Practitioners

Posted 21 October 2026 Written by Acts Online
Category Property Law

Brought to you by SAnews: The Gauteng Division of the High Court in Johannesburg has dismissed an application brought by residential community bodies seeking a blanket declaratory order permitting the imposition of accreditation and access fees on property practitioners.

In terms of sections 62 and 63 of the Property Practitioners Act, No. 22 of 2019, read with Regulation 35 of the Property Practitioners Regulations, 2022, the Property Practitioners Regulatory Authority (PPRA) maintains that charging fees as a condition for estate agents to market or sell properties within residential developments may constitute an undesirable business practice.

The application, brought by the Residential Communities Council (NPC) and the Association of Residential Communities CC, sought broad declaratory relief extending across homeowners’ associations, bodies corporate, and residential estates nationally. The High Court dismissed the application on 20 October 2026, holding that the applicants failed to establish sufficient grounds for the generalized relief sought.

The Court determined that the lawfulness of charging such fees cannot be decided in the abstract and must be evaluated on a case-by-case basis. Key assessment factors include:

  • The legal nature and statutory structure of the governing body;
  • The specific functions and administrative responsibilities performed by the entity;
  • The precise nature, quantum, and justification of the fees levied; and
  • The factual circumstances and conditions under which payment is demanded before access is granted.

The Court further observed that mandatory fee practices may create anti-competitive barriers to entry, restrict consumer choice, and disadvantage property practitioners, reinforcing the PPRA’s statutory mandate to investigate and sanction non-compliant community schemes.

What this means for you, your business, or your clients

  • For yourself: Real estate professionals must refrain from paying unverified accreditation fees without assessing whether the underlying scheme arrangement breaches Regulation 35 of the Property Practitioners Regulations, 2022.
  • For your business: Managing agents, legal advisors, and estate governing bodies must review their rulebooks, access policies, and fee schedules immediately to eliminate blanket or compulsory access charges that contravene sections 62 and 63 of Act No. 22 of 2019.
  • For your clients: Sellers and buyers within gated communities and sectional title schemes are protected against restricted agent selection and inflated transaction costs driven by unlawful accreditation levies.

Originally published at https://www.sanews.gov.za/south-africa/simelane-welcomes-ruling-fees-imposed-property-practitioners

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