What landlords and tenants need to know about the new Property Practitioners' Act
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What landlords and tenants need to know about the new Property Practitioners' Act
As soon as the long awaited Property Practitioners' Act has been signed by the president, it will come into effect bringing considerable changes to the South African property industry.
It will widen the scope of the Estate Agents Act to include bond originators, home owners' associations, timeshare sales, property developers and commercial property brokers.
The new legislation defines a managing agent as anyone collecting funds in respect of a rented property/business or who procures or facilitates financing for or in connection with the management of rental properties. Any person who manages rental properties will fall under the new Act which means broader protection for tenants and landlords. All managing agents as well as companies are required to hold valid Fidelity Fund Certificates (FFC) in order to claim commission on any new or renewed lease. Practitioners who don't hold a valid FFC at the time a sale or lease is concluded, may be required to refund commission paid by the seller or landlord.
The current Estate Agency Affairs Board will be replaced by a new Board of Authority to provide further protection for landlords and tenants. Another new addition will be a separate and independent Property Practitioners Ombud who will deal with any complaints against property practitioners.
The new legislation prescribes that a property practitioner may not accept a mandate to sell or let a property without a disclosure form from the seller or landlord, detailing any/all defects of the property.
Author: Prime Property Marketing
