Practitioners Act (22 of 2019) Purpose of the Act Regulation of - - PowerPoint PPT Presentation

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Practitioners Act (22 of 2019) Purpose of the Act Regulation of - - PowerPoint PPT Presentation

Oct 07, 2023 1.15k likes •1.64k views

Property Practitioners Act (22 of 2019) Purpose of the Act Regulation of Property Practitioners Property Practitioners Regulatory Authority Transformation of the sector Compliance and enforcement of Act Fidelity Fund

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Property Practitioners Act (22 of 2019)

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Purpose of the Act

➢ Regulation of Property Practitioners ➢ Property Practitioners Regulatory Authority ➢ Transformation of the sector ➢ Compliance and enforcement of Act ➢ Fidelity Fund ➢ Consumer Protection

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Section 1 – Definitions

Chapter 1: Definitions, Application, Objects and Establishment of Authority Candidate Property Practitioner

  • Not yet met all the qualifications/experience as required
  • Undergoing training under supervision or a program

created by the Authority

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Section 1 – Definitions

Chapter 1: Definitions, Application, Objects and Establishment of Authority Principal

  • Director / Member / Partner
  • Trustee
  • Owner of Sole Proprietorship
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Section 1 – Definitions

Chapter 1: Definitions, Application, Objects and Establishment of Authority Property Practitioner (1)

  • Natural or juristic person
  • Acquisition of gain on their own account
  • Directly or indirectly acts for or on behalf of any other

person

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Section 1 – Definitions

Chapter 1: Definitions, Application, Objects and Establishment of Authority Property Practitioner (2)

  • By auction
  • Sells
  • Purchaser
  • Manages
  • Publicly exhibits
  • Canvases
  • Negotiates
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Section 1 – Definitions

Chapter 1: Definitions, Application, Objects and Establishment of Authority Property Practitioner (3)

  • Lets or hires or publicly exhibits
  • Collects or receives money payable – lease
  • Financing – bridging finance / bond broker
  • Provides services as an intermediary / facilitator to effect

conclusion of OTP / lease

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Section 2 – Application of the Act

Chapter 1: Definitions, Application, Objects and Establishment of Authority

➢ Marketing / Promotion ➢ Managing ➢ Sale ➢ Letting ➢ Financing ➢ Purchase ➢ Rights, obligations, interests ➢ Duties or powers associated to property

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Section 5 – Establishment of Property Practitioners Regulatory Authority

Chapter 1: Definitions, Application, Objects and Establishment of Authority Juristic Person – PPRA (EAAB) Governed = Board of Authority Regulatory mechanisms – objects of Act

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Section 6 – Functions of Authority

Chapter 1: Definitions, Application, Objects and Establishment of Authority

1. Regulate Conduct of PP

  • Dealing with consumers
  • Marketing, managing, finance, sale and purchase

2. Compliance with Act 3. Consumer Protection 4. Education, training and development 5. Transformation

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Section 21 – Property Sector Transformation Fund

Chapter 4: Transformation of Property Sector

➢ Black owned firms & principals ➢ Participation of historically disadvantaged ➢ Consumer awareness programme ➢ Work readiness programme

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Section 23 – Exemptions in respect of accounting records and trust accounts

Chapter 4: Transformation of Property Sector

1. Turnover below R2.5 million = independent review by registered accountant 2. Minister may by notice

  • Exemptions
  • Method for review of accounting records
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Section 25 – Powers of inspectors to enter, inspect, search and seize

Chapter 5: Compliance and Enforcement

➢ Conduct inspection = compliance with Act ➢ Private residence = written notice in advance ➢ Produce FFC, books / records or other documents ➢ Furnish information ➢ Examine

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Section 26 – Compliance Notices

Chapter 5: Compliance and Enforcement

1. Minister to determine:

  • Minor contraventions
  • Substantial contraventions

2. Prescribe fines / Compliance notices

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Section 28 – Lodging of Complaints

Chapter 5: Compliance and Enforcement

1. Any person can lodge a complaint against PP 2. Authority = 7 days to acknowledge & issue case number 3. Request further information 4. Mediation 5. Adjudication

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Section 41 – Fees payable by property practitioner

Chapter 7: Property Practitioners Fidelity Fund

Annual Fee: 1. Fidelity Fund Certificate 2. Any amount prescribed by the Minister

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Section 48 – Prohibition on rendering services without FFC

Chapter 8: Property Practitioners

1. No person or entity may act as PP without a valid FFC 2. Entity – every person must be issued with a FFC

  • Directors
  • Members
  • Partners
  • Trustees

3. Act without FFC – guilty of an offence

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Section 50 – Disqualification from issue of FFC

Chapter 8: Property Practitioners

1. Not an SA citizen & unlawfully in SA 2. Guilty of contravention of EAAA 3. Unsound mind 4. Dismissed from a position of trust 5. Guilty of a civil/criminal offence relating to fraud/dishonestly

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Section 53 – Mandatory display of FFC

Chapter 8: Property Practitioners

1. Prominently displayed in every place of business 2. Letter head / marketing material – prescribed sentence 3. Agreements – prescribed clause

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Section 54 –Trust Account (1)

Chapter 8: Property Practitioners

➢ Every PP must: ➢ Open and keep one or more trust accounts ➢ Appoint an auditor as prescribed ➢ Provide the Authority with auditors information ➢ Immediately deposit all trust money

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Section 54 –Trust Account (2)

Chapter 8: Property Practitioners

➢ Every PP must: ➢ Retain all trust money ➢ Bank = issue certificate to Authority ➢ Keep account record of deposits & investments ➢ Balance books monthly ➢ Audit report = submitted within 6 months to Authority ➢ Annually confirm/update details of auditor

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Section 56 – Property Practitioner not entitled to remuneration in certain circumstances

Chapter 8: Property Practitioners

1. No valid FFC 2. Conveyancer paying remuneration

  • certified copy of valid FFC
  • period transaction took place
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Section 58 – Limitation on relationships with other property market service providers

Chapter 8: Property Practitioners

➢ PP may not practice in association with any prohibited person by law, code of conduct, ethics or protocol ➢ Enter into an agreement whereby consumer is obliged or encouraged to use a particular service provider including an attorney

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Section 58 – Limitation on relationships with other property market service providers

Chapter 8: Property Practitioners

➢ Renders any service in contravention of this section = not entitled to remuneration ➢ Required to repay any remuneration received plus interest

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Section 62 – Sanctionable Conduct

Chapter 9: Conduct of Property Practitioners

➢ Cannot act for two or more and receive remuneration from both ➢ Fail to pay money due to authority ➢ Contravenes provisions of Code of Conduct ➢ Carries on an undesirable practice ➢ Commits an offence of dishonestly ➢ Discriminates ➢ Contravenes provisions of Act

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Section 63 – Undesirable Conduct

Chapter 9: Conduct of Property Practitioners

➢ Minister – declare particular business practice undesirable = prohibited

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Section 64 – Supervision of Candidate Practitioners

Chapter 9: Conduct of Property Practitioners

Candidate Practitioners may not: Draft or complete any documents conferring any mandate or relating to the sale or lease of property

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Section 64 – Supervision of Candidate Practitioners

Chapter 9: Conduct of Property Practitioners

Contravention

  • Not entitled to remuneration
  • No defence = not aware
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Section 65 – Franchising

Chapter 9: Conduct of Property Practitioners

➢ Franchisee must hold valid FFC ➢ Disclose that you

  • perate

in terms

  • f

a franchise agreement & name of franchisor ➢ Contravention = Authority may withdraw FFC

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Section 66 – Prohibition on conduct to influence issue of certain certificates

Chapter 9: Conduct of Property Practitioners

➢ May not receive financial benefit / influence a person requested to provide COC’s ➢ Electrical ➢ Entomology ➢ Water/damp ➢ Contravention = guilty of an offence

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Section 67 – Mandatory Disclosure Form

Chapter 10: Consumer Protection

A Property Practitioner must not – ▪ Accept a mandate – completed and signed disclosure form ▪ Provide a copy of form to purchaser / lessee ▪ Signed by all parties & attached to OTP ▪ Can include a clause in agreement – defects & deficiencies ▪ Consumer may still inspect property before finalisation

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Section 77 – Commencement

Chapter 11: General

Comes into operation on a date fixed by the President

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Electronic Deeds Registration System Act (19 of 2019)

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Development, establishment and maintenance of electronic deeds registration system

1. Chief Registrar of Deeds

  • Establish
  • Maintain

2. Issue directives

  • Functional & technical requirements
  • Specifications for interface
  • Standards & operation of system
  • Process & secure retention

Electronic Deeds Registration System Act

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Transitional Provisions

1. Continue with registration, execution and filing until regulations / provisions are in place 2. Conveyancers continue to manually lodge until discontinued and directive is received from Chief Registrar

Electronic Deeds Registration System Act

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Section 25

Why understanding the Constitution is Important Compensation must be just and equitable

1. Public Interest 2. Interest of those affected 3. Relevant circumstances

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Commencement

Comes into operation on a date fixed by the President

Electronic Deeds Registration System Act

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