Specialised PPRA Real Estate Categories
Specialised Real Estate Fields that form part of the real estate industry must conform to the Property Practitioners Act No. 22 of 2019. All categories must register with the PPRA and hold a fidelity fund certificate, FFC.
Specialised Categories in Real Estate
- Estate agents
- Auctioneers-Auctioneers
- Bond and Bridging Finance Originators
- Home Owner Associations -HOAs who perform property practitioner activities
- Managing agents
- Property Facilitators and Intermediaries
- Business Brokers, including sales of franchises and business undertakings
- Developers who market and sell their own developed property
- Timeshare and Fractional Ownership practitioners
- Property advertising platforms
- Property practitioners who specialise in collecting and distributing trust monies in terms of Regulation 2.4.1. (Payment processing agents)
- Attorney employees
Specialised Firms
All property firms, no matter what category they fall into, must register with the PPRA and that firm will hold an FFC. To register in the Real Estate category which includes sales and rentals of properties, a principal property practitioner must be appointed. A principal practitioner is an estate agent who has completed or is found exempt from his Real Estate NQF5 qualification and has written and passed his Professional Designated Exam Level 5, PDE5.
If your category as an example is developers, managing agents or auctioneers, when registering with the PPRA, all directors, members, or trustees must register as “directors” and will receive a FFC in that category. A principal property practitioner is not required and the reason is that the PPRA does not have regulated qualifications for these categories. Once they do, then all FFC holders will have to comply with those requirements. If a firm’s director is not involved in dealing with the public in any way, nor does he deal with the agents in that firm, then that director can register as a non-executive director and will not have to hold an FFC. See Sections 48(1)(b) and 48(2) of the Act. The non-executive director must apply for an exemption, which will be granted for a maximum of three years.
Opening a new entity with the PPRA must be done correctly first. PPs offer a service whereby we will manage the opening of your entity with both the PPRA and the Financial Intelligence Centre, FIC. We help you to complete your Risk Management and Compliance Programme and related reporting documents with FIC and offer free FIC training to you and your staff. We advise you on whom in your organisation to register and how. Should you require a company policy document outlining the policies and procedures in your business, we assist with compiling that document.
Registering for Specialised FFC
An FFC is issued for three years and must be renewed before 31 October of the third year. If you practice in two or more fields of real estate, you must hold a FFC in both or all of those categories.
To register for a specialised category, you must apply for exemption from Section 33, which refers to education, until regulated education has been developed for that category. You must supply the PPRA with a letter of employment, your ID, SARS clearance and proof of payment of the required fee.
This can be a daunting process, which is why PPs offer a hassle-free service of ensuring your compliance with the PPRA by assisting with submitting all required documentation. Read more about our annual compliance no-brainer here.
Deregistering from a Specific Category
If you hold a Real Estate FFC but do not sell or let properties – as an example you may be a Managing Agent and only deal with managing properties, not renting or selling them. Then you may apply to deregister your Real Estate FFC. You will then only hold a Managing Agent FFC which could be a cheaper option for you.
If you are an MA and you let properties, you must hold both Real Estate and Managing Agent FFCs.
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. PropAcademy 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.
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