A property practitioner is not entitled to a commission unless he/she is registered and possesses a valid FFC
NOTICE TO PROPERTY PRACTITIONERS TO REGISTER IN TERMS OF SECTION 47(1) OF THE PROPERTY PRACTITIONERS ACT
The following juristic and natural persons are defined by section 1 of the Act as property practitioners, Agents, Business Brokers, Consultants, Advisers, Agency, Accountants, Attorneys, Auctioneers, Bridging Financer, Bond Brokers, Developers, Homeowners Associations, Managing Agents, and Time Shares, (note, without limiting to same).
The Property Practitioners Act came into effect on the 1st of February 2022. Sections 47 and 48 of the Act compel property practitioners including its Directors, Members or Trustees, and all employees who act as property practitioners to obtain and hold a valid Fidelity Fund Certificate (FFC) which must be applied for from the PPRA.
Section 48 of the Act effectively bars a property practitioner from rendering services as a property practitioner if he/she does not possess a valid FFC and Section 56 dictates that a property practitioner is not entitled to commission unless he/she is registered and possesses a valid FFC.
Furthermore, Section 48(4) stipulates that a property practitioner who receives a commission in the absence of the aforementioned certificate will be required to pay back the commission immediately upon receipt of a written request to do so. Conveyancers are prohibited from paying commissions or monies unless a property practitioner produces a certified copy of their FFC.
The consequence of operating without a fidelity fund certificate is that a property practitioner can be found guilty of an offense in terms of section 48(5) of the Act.
If there is any doubt as to whether or not juristic and natural persons are defined by section 1 of the Act as property practitioners have a valid fidelity fund certificate, do not hesitate to contact the Property Practitioners Regulatory Authority (https://theppra.org.za/) or your Attorney to confirm and verify the registration status.