MAIN IMAGE: Thato Ramaili, PPRA CEO
This morning, PPRA CEO, Thato Ramaili, has announced that pursuant to the communique published on the 29th of September 2023 with regards to undesirable business practices, the PPRA will temporarily suspend the enforcement of Regulations 35.1.1.2 to 35.1.1.7 of the Property Practitioners Regulations (2022) in relation to arrangements between property practitioners and HOAs/managing organisations.
The interpretation and application of these regulations to estate access, accreditation and administrative fees is the subject of pending declaratory proceedings (RCC and ARC as applicants; Minister and PPRA as respondents). Until a final judicial determination is made, the legal position remains contested.
It has been decided to temporarily suspend the enforcement of these regulations in relation to arrangements between property practitioners and HOAs/managing organisations for accreditation, allowing practitioners to market, lease, or sell properties within private residential estates and other residential property developments.
In the interim, the applicants, RCC and ARC, have agreed that:
Property practitioners will still be required to undergo the necessary training and remain responsible for the payment of these costs, but will not be liable for such costs until the court has decided the matter. Until the court’s final decision, property practitioners must provide Estates with security, in the form of a written undertaking, for the payment of costs that will become immediately payable if the court decides the matter in favour of the applicants. The PPRA and the applicants will communicate this agreement to all stakeholders.
The suspension shall be in effect from the date of this Notice until the date a final, non-appealable court order is handed down in RCC v Minister of Human Settlements and PPRA (case no. 2024 111832) clarifying the ambit of these regulations.
The PPRA remains committed to eradicating these practices, as they are prejudicial to new entrants to the market and have a decidedly negative impact on the industry’s transformation.
