BEE Blocked – A Landmark Win!!

BEE Blocked!

A Landmark Win for All Property Practitioners!

On 13^th September 2026, the High Court of Gauteng ruled that BEE certificates in the property industry cannot be enforced when registering with the Property Practitioners Regulatory Authority, the PPRA, in order to obtain a Fidelity Fund Certificate, an FFC.

The result of this court case:  Property Practitioners no longer need a BEE Certificate or Affidavit when registering with the PPRA and obtaining their FFC.

We will look at the history and the court outcome.

History of BEE in the property industry

The Property Practitioners Regulatory Authority ruled that all registrations of property practitioners must be supported by their real estate agency they are employed under, holding a valid BEE Certificate or Affidavit.  Failing which, FFCs of any nature would not be issued, and the property practitioner, without an FFC, cannot earn a living.

BEE was implemented in the property industry not simply for transformation, but to determine a person’s ability to practise as a property practitioner and earn income.  This on its own contravenes Section 22 of the Constitution, which refers to the protection of occupation freedom.

Why Sakeliga Took The PPRA To Court

Sakeliga is a non-profit company and business organisation, relying on donations to operate.  Its objective is to protect a favourable business environment through public-interest litigation.  It challenges harmful economic policies and develops practical alternatives where government structures are failing.

The Judgement

The court found Section 50(a)(x) of the Property Practitioners Act No 22 of 2019 “to be uncertain, irrational and impossible to comply with”.

PPRA BEE rulings that the court found:

1. The Act did not define what constitutes a “valid BEE certificate”;
2. It does not specify who must issue this certificate;
3. It does not prescribe a BEE level that is required;
4. It does not clarify that affidavits qualify to replace a BEE certificate;
5. It was proved that the PPRA was inconsistent in the application of the BEE ruling.

The net result of this ruling is that all property practitioners, regardless of category, may apply for FFCs without BEE documentation.

Parliament may reintroduce race-restrictive prescriptions in the Public Procurement Bill, that is yet to be seen, and if it does raise its head, Sakeliga will continue to oppose it.

Resources

• Case No: 2024-148142 in the matter between SAKELIGA NPC and PROPERTY PRACTITIONERS REGULATORY AUTHORITY (First respondent) MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION (Second respondent) MINISTER OF TRADE, INDUSTRY AND COMPETITION, (Third respondent) and NATIONAL PROPERTY FORUM NPO (Fourth respondent)
• sakeliga.org.za

Disclaimer:

The information provided in this article is intended for general informational purposes only. While we strive to keep all updates accurate and up-to-date, the Property Practitioners Regulatory Authority (PPRA) regulations are subject to change, and may do so without prior notice. Property Principal Services is not responsible for any inaccuracies that may occur, nor for any decisions made based on this information. We encourage readers to consult the PPRA directly or visit their official website for the most current information regarding educational regulations and compliance requirements.