Against the backdrop of rising real estate scams, the Property Practitioners Regulatory Authority (‘the PPRA’), which is tasked with regulating and overseeing real estate professionals, recently issued a press release advising prospective sellers and purchasers to only utilise the services of registered property practitioners.
In an advisory distributed on 14th February 2025, the PPRA emphasises the necessity of ensuring that property practitioners – both individual estate agents and firms – are registered with the PPRA and are in possession of a valid Fidelity Fund certificate (‘FCC’), which has been issued for the current year.
When conducting business with a candidate property practitioner, consumers are further advised to confirm that the candidate is operating under the supervision of a registered property practitioner in line with legislative requirements.
To prevent financial loss, consumers are encouraged to verify certain key information prior to making direct payments of trust money to property practitioners. In addition to confirming that the property practitioner – and firm – is registered with the PPRA and possesses a valid FFC, consumers must verify that the firm maintains an active trust account at a registered South African bank and that any trust money will be deposited into such registered trust account before proceeding with a transaction.
For clarity, trust money refers to any funds entrusted to a property practitioner for transactions related to the sale, purchase, leasing, management, development, or marketing of immovable property.
The PPRA encourages consumers who are uncertain about the registration of an agent or firm to contact the regulatory body at 087 285 3222 for confirmation.
Thinking of selling or purchasing property? Contact STBB at info@stbb.co.za for a customised, watertight sale agreement to safeguard your interests. Let us handle the legal intricacies for you.
