Government will introduce the new Property Practitioner’s Act into law which will come into effect from the beginning of next month.
The Act is expected to have a major impact on the selling and leasing of property in the country. It will also give more protection to consumers in the property market.
The Act will make it compulsory for those selling property or renting it out to disclose any defects beforehand. And that no mandate will be accepted from the seller without this undertaking.
It will also widen the scope of who qualifies as property practitioners to include bond originators, companies selling timeshare as well as commercial property brokers.
Property experts say that this Act is long overdue. “I believe it’s a step in the right direction it’s something that we have been waiting for a very long time and it clarifies all other issues faced in the industry,” says Property Expert Cacisa Mgudlwa.
The Act will ensure that those who earn commission from the sale or leasing of property must be in possession of a valid fidelity fund certificate. They must also have valid tax clearance and a BEE certificate.
“These requirements are necessary to ensure that everything is done according to the law,” Mgudlwa adds.
According to the new Act, the current Estate Agencies Affairs Board will be replaced by a new regulatory body called the Board of Authority. The new regulator will be responsible for all the participants in the property sector.
