On 1 February 2022, the Estate Agency Affairs Act, was replaced by the Property Practitioners Act (PPA) and its regulations. At the same time, the Estate Agency Affairs Board (EAAB) will equally be replaced by the Property Practitioners Regulatory Authority (PPRA).
In essence, from a managing agent’s perspective, this doesn’t represent much in the way of changes from an operational point of view, however, there are a few changes that managing agents, and client’s alike, should be aware of.
The first is that the 2022 Fidelity fund Certificates (FFC), issued by the EAAB, will remain in force for the 2022 calendar year. However, all property practitioners must register with the PPRA on or before 31 October 2022, to prepare for the 2023 fidelity fund certificates to be issued.
In order to obtain the new FFC’s, which will be valid for 3 years, as opposed to the hitherto 1 year, the property practitioner must provide a letter of good standing from SARS, as well as a current BBBEE certificate.
Compliance with the prescribed educational requirements, code of conduct, accounting, auditing and record keeping remain much the same as before.
The property practitioner will cause to have conducted, within 6 months of its financial year-end, including the audit of all trust accounts operated by the property practitioner, an audit of its accounts for submission to the PPRA.