Maryna holds the BA, LLB, LLM degrees and is a Director at the Cape Town offices of STBB. She is an admitted Attorney, Notary Public and Conveyancer with many years of experience in the field of property law and conveyancing. She is also the firm's Marketing Director and attends to external publications for the firm as well as conducts ongoing training for estate agent and bankers training and is a regular seminar presenter for attorneys and property practitioners.

Property Practitioners Act | Instalment 7

Re-looking your professional relationships

In case you missed our previous instalments.
Instalment #1
Instalment #2
Instalment #3
Instalment #4
Instalment #5
Instalment #6

This is #7 in our short series of instalments on all the new things to bear in mind with the coming into operation of the Property Practitioners Act on 1 February 2022.

In this instalment we highlight the provisions that place limitations on certain relationships that estate agents may form in their daily operations.

  1. Relationship with the HOA, body corporate or management body of a residential property development
    • Regulation 35, in very broad terms, prohibits the management body (be it a person in control of management, or the HOA or body corporate) of a residential development to receive money or a reward in return for granting some advantage in respect of the marketing of properties in such property development.
    • It also prohibits the placing of a limitation on the sale of property in such property development: An arrangement whereby a property may only be sold through the managing body or a specific agency designated by the managing body, is outlawed.
    • Similarly, a provision that an owner may only sell his or her property to a designated purchaser, will attract scrutiny.
    • Lastly, any arrangement that provides an advantage to some estate agent(s) (or other property practitioner) over others in providing services in the development; or, where it excludes other estate agents (or property practitioners) from rendering services in the development, is prohibited as “undue business practices”.

    “One must bear the regulations’ exact wording in mind when considering the prohibition, and you are invited to discuss this with a STBB conveyancer.”

  2. Prohibition on conduct to influence issuing of Compliance Certificates
    An estate agent (or other property practitioner) may not offer or receive any incentive (or exert influence) in respect of the issuing of Compliance Certificates.
  3. Limitation on relationships with other industry service providers (for example mortgage originators, bridging finance suppliers, and the like)
    Estate agents (and others property practitioners) may not be part of an arrangement (whether formally or not) whereby the consumer (such as a buyer or seller) is obliged or encouraged to use a particular service provider only, to the exclusion of others. This includes the conveyancing attorney, mortgage originator, service providers for compliance certificates, and the like.

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