Today’s launch of the Property Practitioners Regulatory Authority (PPRA) signals the start of a new era that will bring all property industry stakeholders together, under one roof.
This “new dawn”, which coincides with the new Property Practitioners Act coming into effect today, is one that Vuyiswa Ramokgopa, chairperson of the National Property Practitioners Council (NPPC), says the industry has been eagerly awaiting.
“Since the Act was signed in 2019 we have been waiting with bated breath for clarity, and now we have both this and stability.”
The Act establishes the PPRA, which replaces the existing Estate Agency Affairs Board (EAAB). Ultimately, it aims to protect consumers within the property industry, and will regulate all roleplayers, including estate agents and agencies, providers of bridging finance, and conveyancers.
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Ramokgoba says the NPPC, which is South Africa’s largest property sector trade association, believes that the new regulations – and by extension the new regulator – should act as an enabler for the industry, and not a hindrance. It needs to bring more people into the fold and break down some of the hurdles that have been keeping them out.
“We still have a situation today where we have agent interns that have been interns for many years. A large percentage of them are capable and productive agents relegated to interns. We are pleased that there are a number of changes in the new regulations to clear that backlog.”
She says the Act will first create a pathway for those “who are already here” and already certified, and then invite “everyone who wants to come into the industry”.
In particular, Ramokgoba says the following key points in the new regulations are cause for excitement:
- Changes to the path for certification that will help people progress through the industry. This will also bring about transformation.
- Amnesty for those who have fallen foul of the regulations as a result of compliance hurdles, and are now out of the fold. Most of these are black agents who can be brought back into the industry.
- The establishment of a transformation fund which is one of the “monumental” achievements of the regulations, and is not yet seen in any other industry.
“We will be working very closely with the new regulator to ensure that this fund does not go to waste.”
The fact that the new Act contains a section dedicated solely to transformation is a huge win for the property industry, and has been lauded by all sectors. However, Ramokgoba emphasises that transformation is “not about the ’juniorisation’ of Black people”.
“We do not want to see a situation where we are eternally training, being mentored, and having our hands held. Transformation in this new era must be about ownership and ‘principalship’. We are full members of the industry, not minors.”
Echoing this, Gauta Mogomane, chairman of the Board at the Property Practice Institute, says the chapter on transformation will allow previously disadvantaged individuals to finally see the fruits of the sector.
“The new regulations will, we believe, give consumers more protection, and the Authority will also empower Black people through transformation. The PPRA will be the first institution in the country to have transformation legislated.”
However, he explains that transformation is “not just a word” and is, rather, a movement that “must begin to take form”.
“And we as the PPI will hold the PPRA accountable for that. We will do everything in our power to see that it happens.”
Mogomane explains too, that transformation must not be misunderstood to mean “taking from one to give to another”.
“It is about everyone coming to the table and finding workable solutions for all.”
Speaking at today’s launch of the new regulator in Johannesburg, Minister of Human Settlements Mmamoloko Kubayi said the new Act will only be able to achieve its desired outcomes if it is driven by a stable and well-functioning regulatory authority.
“It is for this reason that we prioritised the appointment of a new Board, whose top most important task was to stabilise the entity and ensure that the entity focuses on its primary mandate. I am delighted to report from industry bodies that they have noticed a positive change. This is a demonstration that the new Board has hit the ground running and has made such a tremendous progress in a short space of time.”
She said the industry needed to be transformed so that historically disadvantaged people, especially women and those living with disabilities, can participate meaningfully.
“Property and property ownership is a very contentious issue in our country and has been a subject of very divisive debates. Given the history of our country, it stands to reason as to why the issue of property and property ownership is such an emotive issue.
“However, it is critical to understand that the debate and the practical transformation processes are a necessary step towards healing the divisions of the past.”