Property Practitioners 1.2

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Property Practitioners Act, Gazette
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ACT
To provide for the regulation of property practitioners; to provide for the
continuation of the Estate Agency Affairs Board as the Property Practitioners
Regulatory Authority; to provide for the appointment of the members of the Board
and matters incidental thereto; to provide for the appointment of the Chief
Executive Officer and other staff members of the Authority; to provide for
transformation of the property practitioners sector; to provide for the establishment
of the transformation fund and establishment of the research centre on
transformation; to provide for compliance with and enforcement of the provisions
of the Act; to provide for the continuation of the Estate Agents Fidelity Fund as the
Property Practitioners Fidelity Fund; to provide for consumer protection; to
provide for the repeal of the Estate Agency Affairs Act, 1976; and to provide for
matters connected therewith.
PREAMBLE
WHEREAS a healthy property market is a national asset that restores the dignity of all
South Africans through the basic constitutional right to ownership of immovable
property through security of tenure;
AND WHEREAS a property is an asset to enhance economic activity, growth and
development;
AND WHEREAS patterns of property ownership are historically imbalanced;
AND WHEREAS there are distortions within the property market, especially the
secondary property market;
ANDWHEREAS transformation of the property market is a necessary intervention that
will benefit the historically disadvantaged individuals;
AND WHEREAS consumers require assistance when conducting property transactions;
AND WHEREAS property practitioners can play an important role in providing such
assistance;
AND WHEREAS it is necessary to ensure that such assistance is rendered in a
professional way;
AND it is necessary to regulate circumstances when such assistance is not rendered in
a professional way,
(English text signed by the President)
(Assented to 19 September 2019)
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Act No. 22 of 2019 Property Practitioners Act, 2019
BE IT THEREFORE ENACTED by the Parliament of the Republic of South Africa,
as follows:—
ARRANGEMENT OF SECTIONS
Sections
CHAPTER 1
DEFINITIONS, APPLICATION, OBJECTS AND
ESTABLISHMENT OF AUTHORITY
1. Definitions
2. Application of Act
3. Objects of Act
4. Exemption from Act
5. Establishment of Property Practitioners Regulatory Authority
6. Functions of Authority
CHAPTER 2
BOARD OF AUTHORITY
7. Composition and appointment of Board
8. Disqualification from membership of Board
9. Powers and duties of Board
10. Good governance and code of ethics
11. Conflict of interest of members of Board
12. Termination of Board membership
13. Meetings of Board
14. Committees of Board
15. Dissolution of Board
CHAPTER 3
APPOINTMENT OF CEO AND STAFF OF AUTHORITY
16. Appointment of CEO
17. Staff of Authority
18. Conflict of interest of employees
19. Delegation
CHAPTER 4
TRANSFORMATION OF PROPERTY SECTOR
20. Property sector transformation
21. Property Sector Transformation Fund
22. Property Sector Research Centre
23. Exemptions in respect of accounting records and trust accounts
CHAPTER 5
COMPLIANCE AND ENFORCEMENT
24. Appointment of inspectors
25. Powers of inspectors to enter, inspect, search and seize
26. Compliance notices
27. Fine as compensation
28. Lodging of complaints
29. Mediation
30. Adjudication

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31. Adjudication Appeal Committee
CHAPTER 6
FINANCES
32. Funds of Authority
33. Financial year and deposits
CHAPTER 7
PROPERTY PRACTITIONERS FIDELITY FUND
34. Property Practitioners Fidelity Fund
35. Primary purpose of Fund
36. Control and management of Fund
37. Claims from Fund
38. Payments from Fund
39. Authorisation of grants
40. Indemnity insurance
41. Fees payable by property practitioner
42. Co-operation by claimant
43. Actions against Authority in respect of Fund
44. Application of insurance monies
45. Transfer of rights and remedies to Authority
46. Fund exempt from insurance laws
CHAPTER 8
PROPERTY PRACTITIONERS
47. Application for Fidelity Fund certificate
48. Prohibition on rendering services without Fidelity Fund certificate
49. Mandatory time periods for issuing certificates
50. Disqualification from issue of Fidelity Fund certificate
51. Amendment of Fidelity Fund certificate
52. Withdrawal or lapse of Fidelity Fund certificate
53. Mandatory display of Fidelity Fund certificate
54. Trust account
55. Duty of property practitioner to keep accounting records and other documents
56. Property practitioner not entitled to remuneration in certain circumstances
57. Mandatory indemnity insurance
58. Limitation on relationships with other property market service providers
59. Insolvency or liquidation of property practitioner
CHAPTER 9
CONDUCT OF PROPERTY PRACTITIONERS
60. Application of this Chapter and Chapter 10
61. Code of conduct for property practitioners
62. Sanctionable conduct
63. Undesirable practices
64. Supervision of candidate property practitioners
65. Franchising

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66. Prohibition on conduct to influence issue of certain certificates
CHAPTER 10
CONSUMER PROTECTION
67. Mandatory disclosure form
68. Agreements
69. Consumer education and information
CHAPTER 11
GENERAL
70. Regulations
71. Penalties
72. Delegation of powers by Minister
73. Legal proceedings against Authority
74. Use of name of Authority
75. Transitional provisions
76. Repeal
77. Short title and commencement
CHAPTER 1
DEFINITIONS, APPLICATION, OBJECTS AND ESTABLISHMENT
OF AUTHORITY
Definitions
1. In this Act, unless the context otherwise indicates—
‘‘accounting records’’—
(a) means information in written or electronic form concerning the trust accounts
of the property practitioner as required in terms of this Act, including but not
limited to, records of all transactions involving trust monies, general and
subsidiary ledgers and other documents and books used in the administration
of the trust accounts; and
(b) in relation to the property practitioner’s business as such, means information
in written or electronic form concerning the financial affairs of the business as
required in terms of this Act or any other Act that may be applicable to the
business of the property practitioner, including but not limited to, records of
assets, liabilities, income and expenses, general and subsidiary ledgers and
other documents and books used in the preparation of financial statements of
the business;
‘‘audit’’ has the meaning ascribed to it in the Auditing Profession Act, 2005 (Act
No. 26 of 2005);
‘‘auditor’’ means an individual or firm registered in terms of section 37 or 38 of the
Auditing Profession Act, 2005 (Act No. 26 of 2005);
‘‘Authority’’ means the Property Practitioners Regulatory Authority established in
terms of section 5;
‘‘Board’’ means the Board of Authority contemplated in Chapter 2;
‘‘candidate property practitioner’’ means a person who has not yet met all the
qualification or experience required as prescribed, to practise as a property
practitioner and who is undergoing training under the supervision of a property
practitioner, or a program created by the Authority;
‘‘CEO’’ means the Chief Executive Officer of the Authority appointed in terms of
section 17;
‘‘Chairperson’’ means the Chairperson of the Board;
‘‘code of conduct’’ means the code of conduct prescribed in terms of section 61;
‘‘consumer’’ means a consumer as defined in section 1(a) or (c) of the Consumer
Protection Act, 2008 (Act No. 68 of 2008);
‘‘conveyancer’’ means a conveyancer as defined in section 1 of the Attorneys Act,
1979 (Act No. 53 of 1979);

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‘‘days’’ means calendar days including Saturdays, Sundays and Public Holidays
but excluding the period between 15 December to 15 January of the preceding year;
‘‘Department’’ means the national Department of Human Settlements;
‘‘Estate Agency Affairs Act’’ means the Estate Agency Affairs Act, 1976 (Act No.
112 of 1976);
‘‘Estate Agency Affairs Board’’ means the Estate Agency Affairs Board
established by section 2 of the Estate Agency Affairs Act;
‘‘Fund’’ means the Property Practitioners Fidelity Fund contemplated in section
34;
‘‘Fidelity Fund certificate’’ means a Fidelity Fund certificate contemplated in
section 47(1);
‘‘immediate family member’’ means a parent, child, brother or sister, or any
person married to such a person, or a life partner of such a person;
‘‘inspector’’ means a person appointed in terms of section 24;
‘‘mandatory disclosure form’’ means the form referred to in section 67;
‘‘Minister’’ means the Minister of Human Settlements;
‘‘principal’’ means a property practitioner who is a director of a company, member
of a close corporation, trustee of a trust, partner of a partnership or owner of sole
proprietorship that operates as a property practitioner;
‘‘property practitioner’’—
(a) means any natural or juristic person who or which for the acquisition of gain
on his, her or its own account or in partnership, in any manner holds himself,
herself or itself out as a person who or which, directly or indirectly, on the
instructions of or on behalf of any other person—
(i) by auction or otherwise sells, purchases, manages or publicly exhibits for
sale property or any business undertaking or negotiates in connection
therewith or canvasses or undertakes or offers to canvas a seller or
purchaser in respect thereof;
(ii) lets or hires or publicly exhibits for hire property or any business
undertaking by electronic or any other means or negotiates in connection
therewith or canvasses or undertakes or offers to canvass a lessee or
lessor in respect thereof;
(iii) collects or receives any monies payable on account of a lease of a
property or a business undertaking;
(iv) provides, procures, facilitates, secures or otherwise obtains or markets
financing for or in connection with the management, sale or lease of a
property or a business undertaking, including a provider of bridging
finance and a bond broker, but excluding any person contemplated in the
definition of ‘‘financial institution’’ in section 1 of the Financial Services
Board Act, 1990 (Act No. 97 of 1990);
(v) in any other way acts or provides services as intermediary or facilitator
with the primary purpose to, or to attempt to effect the conclusion of an
agreement to sell and purchase, or hire or let, as the case may be, a
property or business undertaking, including, if performing the acts
mentioned in this subparagraph, a home ownership association, but does
not include—
(aa) a person who does not do so in the ordinary course of business;

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(bb) where the person is a natural person and that person in the ordinary
course of business offers a property for sale which belongs to him or
her in his or her personal capacity;
(cc) an attorney or candidate attorney as defined in section 1 of the
Attorneys Act, 1979 (Act No. 53 of 1979); or
(dd) a sheriff as defined in section 1 of the Sheriffs Act, 1986 (Act No. 90
of 1986), when he or she performs any functions contemplated in
paragraph (a) of this definition, irrespective of whether or not he or
she has been ordered by a court of law to do so; or
(vi) renders any other service specified by the Minister on the recommendation
of the Board from time to time by notice in the Gazette;
(b) includes any person who sells, by auction or otherwise, or markets, promotes
or advertises any part, unit or section of, or rights or shares, including time
share and fractional ownership, in a property or property development;
(c) includes any person who for remuneration manages a property on behalf of
another;
(d) includes a trust in respect of which the trustee, for the acquisition of gain on
the account of the trust, directly or indirectly in any manner holds out that it
is a business which, on the instruction of or on behalf of any other person,
performs any act referred to in paragraph (a);
(e) for the purposes of sections 34, 46, 48, 59, 60, 61 and 65 includes—
(i) any director of a company or a member of a close corporation who is a
property practitioner as defined in paragraph (a);
(ii) any person who is employed by a property practitioner as envisaged in
paragraph (a) and performs on his, her or its behalf any act referred to in
subparagraph (i), (ii), (iv), (v) or (vi) of that paragraph;
(iii) any trustee of a trust which is a property practitioner as envisaged in
paragraph (d);
(iv) any person who is employed by a property practitioner as envisaged in
paragraph (b) and performs on its behalf any act referred to in
subparagraph (i), (ii), (iv), (v) or (vi) of paragraph (a); and
(v) any person who is employed by a property practitioner contemplated in
paragraph (a) or (b) to manage, supervise or control the day-to-day
operations of the business of that property practitioner;
(f) includes any person who is employed by or renders services to an attorney or
a professional company as defined in section 1 of the Attorneys Act, 1979,
other than an attorney or candidate attorney, and whose duties consist wholly
or primarily of the performance of any act referred to in subparagraph (i), (ii),
(iii), (iv), (v) or (vi) of paragraph (a), on behalf of such attorney or
professional company whose actions will be specifically covered by the
Attorneys’ Fidelity Fund and not the Property Practitioners Fidelity Fund;
(g) for the purposes of section 61 and any regulation made under section 70,
includes any person who was a property practitioner at the time when he or
she was guilty of any act or omission which allegedly constitutes sanctionable
conduct referred to in section 62,
but does not include an attorney who, on his own account or as a partner in a firm
of attorneys or as a member of a professional company, as defined in section 1 of
the Attorneys Act, 1979, or a candidate attorney as defined in that section, who
performs any act referred to in paragraph (a), in the course of and in the name of

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and from the premises of such attorney’s or professional company’s practice,
provided that such an act may not be performed—
(i) in partnership with any person other than a partner in the practice of that
attorney as defined in section 1 of the Attorneys Act, 1979; or
(ii) through the medium of or as a director of a company other than such
professional company; and
‘‘advertise’’ for the purposes of this definition does not include advertising in
compliance with the provisions of any other law;
‘‘prescribe’’ means prescribe by regulation;
‘‘property’’ means immovable property, and any interest, right or duty associated
with it as contemplated in section 2;
‘‘record’’ means any recorded information regardless of form or medium;
‘‘registration certificate’’ means a registration certificate as contemplated in
section 47(2);
‘‘this Act’’ includes any regulations made under this Act; and
‘‘trust money’’ means—
(a) money entrusted to a property practitioner in his or her capacity as a property
practitioner;
(b) money collected or received by a property practitioner and payable in respect
of or on account of any act referred to in subparagraph (i), (ii), (iii) or (iv) of
paragraph (a) of the definition of a ‘‘property practitioner’’;
(c) any other money, including insurance premiums, collected or received by a
property practitioner and payable in respect of any immovable property,
business undertaking or contract for the building or erection of any
improvements on immovable property.
Application of Act
2. This Act applies to the marketing, promotion, managing, sale, letting, financing and
purchase of immovable property, and to any rights, obligations, interests, duties or
powers associated with or relevant to such property.
Objects of Act
3. The objects of the Act are to—
(a) provide for the regulation of property practitioners;
(b) provide for the establishment of the Authority;
(c) provide for the powers, functions and governance of the Authority;
(d) provide for the protection and promotion of the interests of consumers;
(e) provide for a dispute resolution mechanism in the property market;
(f) provide for the education, training and development of property practitioners
and candidate Property Practitioners;
(g) provide for a framework for the licensing of property practitioners;
(h) provide for a just and equitable legal framework for the marketing, managing,
financing, letting, renting, sale and purchase of property;
(i) promote meaningful participation of historically disadvantaged individuals
and small, micro and medium enterprises in the property market;
(j) provide for the transformation of the property market and the establishment of
the Property Sector Transformation Fund;

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(k) provide for the transformation of the property market that facilitates property
ownership to more South Africans through structured interventions and the
creation of property consumer ownership programmes in the affordable and
secondary market; and
(l) create a mechanism for responding and implementation of directives received
from the Minister, from time to time.
Exemption from Act
4. (1) Any person (hereinafter referred to as the applicant) may, subject to the
provisions of this section, be exempted from compliance with any specific provision of
this Act.
(2) The applicant must, in the prescribed manner and form, submit the application for
exemption to the Authority, accompanied by—
(a) an explanation of the reasons for the application; and
(b) any applicable supporting documents.
(3) The Authority may direct the applicant to—
(a) furnish additional information which may be relevant; and
(b) appear in person before the Authority to support his or her application and
provide verbal responses to questions raised by the Authority.
(4) (a) Any person may raise an objection to the Authority as prescribed regarding the
exemption which has been granted to a person or an entity in terms of this section.
(b) The Authority must consider the objection and determine whether such objection
may be sustained.
(5) The Authority must consider and decide on the application, taking into account
whether—
(a) the granting of the exemption is likely to impact negatively on the interests of
the general public;
(b) the granting of the exemption is likely to impact negatively on competition in
the property sector or the property practitioners’ industry;
(c) the granting of the exemption is likely to benefit one section of the property
practitioners’ industry to the detriment of another;
(d) appropriate, sufficient and effective regulatory protection of consumers’ rights
and interests exists; and
(e) the exemption would not defeat the objects of the Act.
(6) The Authority may—
(a) approve the application, together with a record of the matters contemplated in
subsection (7): Provided that the exemption may not exceed three years and
may not be applied retrospectively;
(b) decline the application; or
(c) refer the application back to the applicant for further investigation or
consideration, as the case may be.
(7) If the Authority approves the application, the Authority must publish the decision
on its website, which must include—
(a) the provision of the Act from which exemption is granted;
(b) the person to whom the exemption applies;
(c) the date from which and the date up to when the exemption applies;
(d) any conditions that apply to the exemption;
(e) the reasons for granting the exemption;
(f) a declaration that the granting of an exemption does not create any special
rights or legitimate interests which may apply to the category of persons so
exempted; and
(g) a declaration that any exemption granted may be amended or withdrawn
subject to the provisions of this section.
(8) Any person who is adversely affected by the decision of the Authority may request
the Authority to provide written reasons.
(9) (a) Any person may, at any time in writing, request the Minister to review any
exemption granted in terms of this section.
(b) The Minister must instruct the person requesting the review to notify the Authority
as well as any other person specified by the Minister, for the account of the person
requesting that review, and to submit any comments received to the Minister.


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(10) The Authority may on good grounds amend, suspend or withdraw an exemption.
(11) The Authority must publish the exemption on its website.
Establishment of Property Practitioners Regulatory Authority
5. (1) There is hereby established a juristic person to be known as the Property
Practitioners Regulatory Authority.
(2) The Authority is a National Public Entity subject to the Public Finance
Management Act, 1999 (Act No. 1 of 1999).
(3) The Authority is governed and acts through a Board known as the Board of the
Authority.
(4) The Authority must provide regulatory mechanisms in respect of the financing,
marketing, managing, letting, hiring, sale, property consumer education and purchase of
property, and may do all that is necessary or expedient to achieve the objects of this Act.
(5) The Authority is accountable to the Minister.
Functions of Authority
6. The functions of the Authority are to—
(a) regulate the conduct of property practitioners in dealing with the consumers;
(b) regulate the conduct of property practitioners in so far as marketing,
managing, financing, letting, renting, hiring, sale and purchase of property are
concerned;
(c) regulate and ensure that there is compliance with the provisions of the Act;
(d) ensure that the consumers are protected from undesirable and sanctionable
practices as set out in section 62 and section 63;
(e) regulate any other conduct which falls within the ambit of the Act in as far as
property practitioners and consumers in this market are concerned;
(f) provide for the education, training and development of property practitioners
and candidate property practitioners;
(g) educate and inform consumers about their rights as set out in section 69; and
(h) implement measures to ensure that the property sector is transformed as set
out in Chapter 4.
CHAPTER 2
BOARD OF AUTHORITY
Composition and appointment of Board
7. (1) The Board consists of—
(a) not less than nine but not more than 12 non-executive members, including the
Chairperson, appointed by the Minister; and
(b) the CEO, who serves on the Board by virtue of his or her office.
(2) The total number of the Board members contemplated in subsection (1)(a) must
consist of—
(a) a combination of the following skills and competencies:
(i) Sufficient financial expertise;
(ii) relevant legal experience;
(iii) sufficient experience as property practitioners;
(iv) sufficient experience in rural and land reform;
(v) sufficient experience in the promotion and protection of the consumer
interests; and

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(b) at least—
(i) one member nominated by the Minister of Trade and Industry, in
consultation with the Minister; and
(ii) one member nominated by the Minister of PublicWorks, in consultation
with the Minister.
(3) (a) The Minister must, prior to the appointment of members of the Board as
contemplated in subsection (1)(a), or to filling a vacancy, issue an invitation in the
Gazette and at least two newspapers circulating nationally in the Republic for the
nomination of persons meeting the requirements to serve on the Board.
(b) A member of the Board contemplated in subsection (1)(a) who is not a public
servant or in the full-time employ of the State may be paid out of the funds of the
Authority the remuneration and allowances that may be determined generally or in any
particular case by the Minister in concurrence with the Minister of Finance.
(4) The Minister must ensure that—
(a) the appointment of members of the Board is governed by the overriding
principle of selection based on merit, determined by an assessment of—
(i) the objects, functions and operations of the Authority;
(ii) the competencies collectively required for serving on the Board,
including the relevant skills, expertise and experience relating to
governing an organ of state, having regard to subsection (2); and
(iii) the qualifications, skills, expertise and experience of each individual
prospective candidate;
(b) the Board is broadly representative with regard to race, gender and disability;
and
(c) the majority of persons serving on the Board are not public servants
contemplated in section 8 of the Public Service Act, 1994 (Proclamation No.
103 of 1994).
(5) When the Chairperson of the Board—
(a) is absent from a meeting of the Board, the remaining members must nominate
one of them to act as Chairperson for that meeting; or
(b) vacates his or her office, the Minister must within three months appoint a
Chairperson in accordance with subsection (3).
(6) A non-executive member of the Board holds office for a period of three years.
(7) A member of the Board who is upon completion of his or her three-year term of
office eligible for reappointment, but—
(a) no member may serve more than two consecutive terms of office; and
(b) the Minister may not reappoint more than five members of the same Board.
Disqualification from membership of Board
8. The Minister may not appoint a person to the Board—
(a) who is not a South African citizen or a permanent resident, and who is not
ordinarily resident in the Republic;
(b) who is a member of Parliament, a member of a provincial legislature, a
member of Cabinet or a Deputy Minister, a Premier or other member of a
provincial executive council, a member of the National House of Traditional
Leaders or a Provincial House of Traditional Leaders, or a mayor or other
member of a municipal council;
(c) who or whose spouse, life partner, immediate family member, business
partner or associate, holds an office in or is employed by or has any other
interest whatsoever, whether direct or indirect, in any company or other entity
which supplies goods or renders services to the Authority, unless such an
interest is declared for purposes of considering that person’s nomination;

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(d) who is disqualified to act as a director of a company incorporated in terms of
the Companies Act, 2008 (Act No. 71 of 2008);
(e) who has been found in any civil or criminal proceedings by a court of law,
whether in the Republic or elsewhere, to have acted fraudulently, dishonestly,
unprofessionally, dishonourably or in breach of a fiduciary duty, or of any
other offence for which such person has been sentenced to direct imprisonment
without the option of a fine, other than an offence committed prior to 27
April 1994 demonstrably associated with political objectives;
(f) whose name, or the name of a juristic person of whom the person was a
director, member, trustee, partner, shareholder, holder of membership or other
beneficial interest has been listed by the National Treasury on its Register for
Tender Defaulters established by section 29 of the Prevention and Combating
of Corrupt Activities Act, 2004 (Act No. 12 of 2004);
(g) who has been discharged from a position of trust;
(h) whose membership of a board or other accounting authority of a public entity
as defined in section 1 of the Public Finance Management Act, 1999 (Act No.
1 of 1999), has been prematurely terminated due to a dishonourable discharge;
(i) who has at any time been found to be in contravention of this Act or the Estate
Agency Affairs Act;
(j) who is of unsound mind; or
(k) who is an unrehabilitated insolvent.
Powers and duties of Board
9. The functions of the Board are to—
(a) ensure that the Authority complies with this Act and any other applicable law;
(b) ensure that the Authority performs its duties efficiently and effectively;
(c) provide corporate governance for the Authority;
(d) determine and enforce the broad policy framework within which the Authority
must pursue its objects and perform its functions;
(e) ensure that the Authority exercises its powers in accordance with the
principles of transparency and accountability;
(f) manage the marketing, promotion, sale, lease, financing, purchasing, registration
and transfer of property of the Authority;
(g) advise the Minister on—
(i) the efficacy of this Act;
(ii) the state of transformation of the industry;
(iii) prescribing of regulations;
(iv) education and training of property practitioners; and
(v) any other matter on which the Minister requires the advice of the Board;
(h) maintain the Fund and hold it in trust; and
(i) perform any other power or duty conferred on the Board by this Act or any
other applicable law.
Good governance and code of ethics
10. (1) The Board must—
(a) approve codes of ethics applicable to all members of the Board and employees
of the Authority, respectively; and
(b) from time to time, review those codes to ensure compliance with all current
law, principles of good governance and ethical behaviour.
(2) Nothing in this section prevents the Board from voluntarily adopting any code,
protocol or charter not in conflict with any policy, code, protocol, guideline or similar
document contemplated in subsection (1) and applicable to its members.

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Conflict of interest of members of Board
11. (1) A member of the Board must, upon appointment, submit a declaration to the
Minister, made under oath or by affirmation, to the effect that he or she is not disqualified
from appointment as contemplated in section 8.
(2) A member of the Board or of a committee of the Board, as the case may be, must
immediately when he or she becomes aware of any conflict of interest, in writing, inform
the Chairperson of the Board or the chairperson of a Board committee, as the case may
be, of such conflict, and the relevant chairperson must immediately excuse that member
from participating and voting in any part of a meeting or proceedings where the matter
that has caused such a conflict is considered.
(3) The Chairperson of the Board or of a committee of the Board must, immediately
when he or she becomes aware of any conflict of interest, in writing, inform the Board
or the Board committee of such conflict, and the Chairperson must recuse himself or
herself from participating and voting in any part of a meeting or proceedings where the
matter that has caused such a conflict is considered.
Termination of membership of Board
12. (1) The Minister may, after having afforded a member of the Board a reasonable
opportunity to make submissions in writing, terminate that member’s membership of the
Board if that member has—
(a) failed to immediately declare any conflict of interest as contemplated in
section 11;
(b) repeatedly and knowingly disregarded or contravened any code of ethics
contemplated in section 10 or any other applicable law; or
(c) failed to attend three consecutive meetings of the Board or a Board committee
without the permission of the Chairperson or of the Board or the Chairperson
of the relevant Board committee.
(2) The Minister must, when terminating the membership of a member of the Board,
in writing, inform both the Board and that member of the reasons for that termination.
(3) If a member of the Board at any time during his or her term of office becomes
disqualified to be a Board member on any of the grounds contemplated in section 8, that
member—
(a) must immediately in writing inform the Minister and the Chairperson of the
Board of that disqualification, and once the Minister has been so informed he
or she must forthwith in writing remove that member from the Board; and
(b) may not attend a Board meeting or a Board committee meeting from the time
he or she has so become disqualified until he or she is removed by the
Minister.
(4)Amember of the Board may resign by giving one month’s notice in writing to the
Minister.
(5) The termination of membership of the Board or resignation from the Board does
not in any way prevent or influence the institution or continuance of proceedings against
the person whose membership of the Board was terminated or who resigned from the
Board, as the case may be.
Meetings of Board
13. (1) The Board must meet at least once in every three months.
(2) The Chairperson or Board must forthwith call a special meeting of the Board, if
requested in writing to do so by at least three members of the Board.
(3) A majority of members of the Board constitute a quorum for a meeting of the
Board.
(4) The Chairperson has a casting vote only.

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(5)Any minutes of a meeting, or a decision, signed by the Chairperson of the meeting,
or by the chairperson of the next meeting of the Board, as the case may be, is evidence
of the proceedings of that meeting or adoption of that decision, as the case may be.
(6) A meeting of the Board may be conducted by electronic communication and
individual Board members may participate in a meeting by electronic communication, if
the Board so approves, but the electronic communication facility employed must enable
all persons participating in that meeting to communicate concurrently with each other
without an intermediary and to participate effectively in the meeting.
(7) The Board must, in addition to this section, adopt a charter setting out its rules of
operation in line with applicable good corporate governance codes.
(8) The Board determines its own procedures at meetings of the Board.
Committees of Board
14. (1) The Board may appoint committees to assist it in efficiently and effectively
performing its functions and exercising its powers.
(2) The Chairperson of the Board may not serve on any of the Board’s committees.
(3) The Board must determine the experience and qualifications of the members of the
committees as well as the composition, period of service, rules and procedures of those
committees.
(4) The Board remains responsible and accountable for anything done by its
committees.
Dissolution of Board
15. (1) Subject to the provisions of the Promotion of Administrative Justice Act, 2000
(Act No. 3 of 2000), the Minister may dissolve the Board if—
(a) the Board collectively disregards or contravenes any document contemplated
in section 10 or any applicable law; or
(b) the Auditor-General has for two successive years qualified his or her audit
report or noted matters of emphasis or has declined to express an opinion on
the accounts, financial statements and financial management of the Authority.
(2) Upon dissolution of the Board, the Minister must appoint an administrator to take
over the functions of the Board and to do anything which the Board might otherwise be
empowered or required to do by or under this Act, subject to such conditions as the
Minister may determine.
(3) The appointment contemplated in subsection (2) may not exceed a period of 12
months.
CHAPTER 3
APPOINTMENT OF CEO AND STAFF OF AUTHORITY
Appointment of CEO
16. (1) The Board must, with the approval of the Minister, appoint a suitably qualified
and experienced person as CEO for a period not exceeding five years.
(2) The CEO is accountable to the Board and is responsible and accountable for the
day-to-day management and operations of the Authority.
(3) The Board must, prior to the appointment of the CEO, satisfy itself that the person
whom it intends to appoint has a suitable combination of qualifications, skills and
experience to lead and manage the Authority.
(4) The appointment of the CEO is subject to the conclusion of a written performance
contract entered into between the CEO and the Board within three months of the
appointment of the CEO.
(5) The CEO and any company in which he or she is a director may not trade with the
Authority within 12 months after the termination of his or her employment by or
resignation from the Authority.
(6)ACEO may be re-appointed after the expiration of his or her term of office for one
additional term of five years.

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(7) The CEO may resign by giving three months’ notice in writing to the Board, unless
the parties agree on a shorter period.
(8) Upon resignation or removal of the CEO, the Board must immediately appoint a
new CEO or another suitable person as acting CEO on the terms and conditions
determined by the Board, until a new CEO is appointed.
(9) If the Board has not appointed a new CEO within six months after the position of
the CEO became vacant, the Board must within 14 days after the expiry of that
six-month period report to the Minister the reasons why it has not done so.
(10) The termination of the CEO’s employment contract or the CEO’s resignation
does not in any way prevent or influence the institution or continuance of legal or
disciplinary proceedings against him or her.
Staff of Authority
17. (1) The CEO must appoint suitably qualified persons to assist the CEO to
efficiently and effectively perform his or her functions under this Act, in accordance with
an employment policy approved by the Board.
(2) The CEO must ensure that all employees of the Authority are adequately qualified
and trained for their respective positions.
(3) The code of ethics for employees of the Authority contemplated in section 10(1)
applies to all employees of the Authority to the extent indicated in the code.
Conflict of interest of employees
18. (1) An employee of the Authority must, on appointment, submit to the CEO a
statement in writing in which that person declares whether or not he or she has any direct
or indirect interest, financially or otherwise, which—
(a) may constitute a conflict of interest in respect of his or her functions as a
member of staff of the Authority; or
(b) could reasonably be expected to compromise the Authority in the performance
of its functions.
(2) If an employee of the Authority acquires an interest contemplated in subsection
(1), he or she must immediately in writing declare that fact to the CEO.
(3) An employee of the Authority may not be present at, or take part in, the discussion
of or the taking of a decision on any matter before the Authority in which that member
has an interest contemplated in subsection (1).
(4) An employee of the Authority may not use his or her position or privileges, or
confidential information obtained as a member of staff of the Authority, for personal gain
or to improperly benefit another person.
(5) The Authority must institute disciplinary proceedings against any employee of the
Authority who fails or refuses to comply with or contravenes subsection (1), (2), (3) or
(4) in accordance with applicable employment and labour law.
(6) The Authority must keep a register of the interests of members of staff disclosed
in terms of subsections (1) and (2), and must update that register every three months.
Delegation
19. (1) The CEO may, in writing, delegate any of his or her functions or powers to any
of the staff members of the Authority subject to any qualifications he or she may
determine.
(2) The delegation of any function or power under subsection (1) does not preclude
the CEO from exercising such function or power.

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(3) The CEO remains responsible and accountable for all acts and omissions in terms
of or under such a delegation.
(4) The CEO may in writing revoke any delegation under subsection (1).
(5) The CEO must maintain a register of all delegations under subsection (1).
CHAPTER 4
TRANSFORMATION OF PROPERTY SECTOR
Property sector transformation
20. (1) The Property Sector Transformation Charter Code as amended from time to
time applies to all property practitioners.
(2) When procuring property related goods and services, all organs of state must
utilise the services of property practitioners who comply with the broad-based black
economic empowerment and employment equity legislation and policies.
(3) The Authority must from time to time—
(a) implement and assess measures to progressively promote an inclusive and
integrated property sector;
(b) implement appropriate measures and assess the state of transformation within
the property sector;
(c) create such mechanisms for the continuous monitoring and evaluation of the
sector performance on the transformation imperatives and granting of
incentives as may be prescribed; and
(d) introduce measures to be implemented, which may include incubation and
capacity building programmes to redress the imbalances of the past.
Property Sector Transformation Fund
21. (1) The Authority must, within six months of its establishment, open a Property
Sector Transformation Fund into which grants contemplated in section 38 are paid.
(2) The Minister may prescribe measures to promote economic transformation by
facilitating the accessibility of finance for property ownership, property development
and investment in order to enable meaningful participation of historically disadvantaged
individuals including women, youth and people with disabilities.
(3) The Authority must utilise the Property Sector Transformation Fund in such a
manner as may be prescribed, which may include the following transformation and
empowerment programmes:
(a) Principalisation Programme, to promote Black owned firms and principals.
(b) Regularisation Programme, to promote and encourage participation of the
historically disadvantaged due to non-compliance.
(c) Consumer Awareness Programme, to promote awareness of property transactions
and business undertaking.
(d) Work Readiness Programme, to promote and enhance participation of the
historically disadvantaged in the property sector.
(4) The Authority must in consultation with the services SETA develop special
dispensation for the training and development of the historically disadvantaged which
must include recognition of prior learning.

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Property Sector Research Centre
22. (1) The Property Sector Research Centre is hereby established.
(2) The Property Sector Research Centre must conduct market research in partnership
with the National Research Foundation and institutions of higher learning.
(3) The Property Sector Research Centre must—
(a) be aimed at increasing the national scientific research and innovation
capability through the development of human capacity and stimulating the
generation of new knowledge in the property sector;
(b) be the central repository of expert knowledge on pre-determined areas of the
transformation of the property sector in South Africa; and
(c) support the realisation of South Africa’s transformation into knowledge-based
economy in which the generation of knowledge translates into socioeconomic
benefits.
(4) The property sector research agenda must prioritise the following:
(a) Identification of barriers to entry and meaningful participation in the property
sector by historically disadvantaged individuals;
(b) Demographic distribution of skills that determine resilience in the property
sector;
(c) An inclusive, accessible and transformatory curriculum development and
enhancement in the technical and vocational education and training and
higher education sectors in South Africa;
(d) Systematic patterns of discriminatory behaviour in the property development
and management value-chain;
(e) Efficacy of compliance, monitoring and enforcement mechanisms to advance
the transformation of the property sector;
(f) The rural-urban dynamic in property sector growth and transformation; and
(g) The contribution of the property sector in urban spatial transformation and
economy.
(5) The Property Sector Research Centre must annually promote consumer awareness
and education, which must include:
(a) The education of consumers on their rights and responsibilities in respect of
property ownership and development;
(b) All the empowerment programmes of the Authority; and
(c) Consumer protection and lodging of claims
Exemptions in respect of accounting records and trust accounts
23. (1) A property practitioner whose turnover is below R2,5 million must cause his,
her or its accounting records to be subjected to an independent review by a registered
accountant subject to the provisions of section 54(1) to (7), applied with the necessary
changes.
(2) The Minister may by notice in the Gazette—
(a) determine the circumstances under which certain property practitioners may
be exempted from keeping trust accounts; and
(b) determine a different dispensation for the review of accounting records for
those property practitioners.
CHAPTER 5
COMPLIANCE AND ENFORCEMENT
Appointment of inspectors
24. (1) The CEO—
(a) must appoint any suitably qualified person as an inspector; and

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(b) must issue each inspector with a certificate in the prescribed form stating that
the person has been appointed as an inspector in terms of this Act and with the
inspector’s identification card.
(2) When the inspector performs his or her functions in terms of this section, the
inspector must—
(a) be in possession of a certificate of appointment or an inspector’s identification
card issued to that inspector in terms of subsection (1)(b);
(b) immediately show that certificate or inspector’s identification card to any
person who—
(i) is affected by the inspector’s actions in terms of this Act; or
(ii) requests to see the certificate or inspector’s identification card; and
(c) have the powers of a peace officer as defined in section 1 of the Criminal
Procedure Act, 1977 (Act No. 51 of 1977), and may exercise the powers
conferred on a peace officer by law.
Powers of inspectors to enter, inspect, search and seize
25. (1) An inspector may, at any reasonable time and without prior notice, conduct an
inspection to determine whether the provisions of this Act are being or have been
complied with, and for that purpose, may without a search warrant—
(a) enter and inspect any business premises, except a private residence, of a
property practitioner;
(b) require the property practitioner, manager, employee or an agent of the
property practitioner to—
(i) produce to him or her the fidelity fund certificate of that property
practitioner;
(ii) produce to him or her any book, record or other document related to the
inspection and in the possession or under the control of that property
practitioner, manager, employee or agent; or
(iii) furnish him or her with such information in respect of the fidelity fund
certificate, book, record or other document at such a place and in such
manner as the inspector may determine; and
(c) examine or make extracts from, or copies of, any such fidelity fund certificate,
book, record or other document.
(2) Where a property practitioner conducts his or her business at his or her private
residence, the inspector must notify the property practitioner in advance and in writing
before conducting the inspection in terms of subsection (1), and set out the details of the
inspection.
(3) An inspector may, on authority of a search warrant—
(a) enter and search any premises and any person on those premises if there are
reasonable grounds for believing that there is an article or record therein that
has a bearing on the inspection;
(b) examine any such article or record that is in those premises;
(c) request any person on the premises to unlock or otherwise provide unhindered
access to any safe, storage facility or other receptacle on the premises, or to
point out any other person on the premises who can do so;
(d) request information about any article, document or record that has a bearing
on the inspection;
(e) take extracts from, or make copies of, any book, computer, document or
record that is on or in the premises and that has a bearing on the inspection;
(f) use any computer system on the premises that has a bearing on the inspection,
or require assistance of any person on the premises to use that computer
system, to—
(i) search any data contained in or available on that computer system; or
(ii) reproduce any record from that data;

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(g) seize any output from that computer for examination and copying;
(h) attach and if necessary remove from the premises for examination and
safekeeping anything that has a bearing on the inspection; and
(i) seize and retain any such fidelity fund certificate, book, record or other
document that may afford evidence of sanctionable conduct under this Act:
Provided that the person from whom the fidelity fund certificate, book, record
or other document was taken shall, at his or her request and at his or her
expense, be allowed to make copies thereof or extracts therefrom, under the
supervision of the inspector concerned.
(4) The search warrant contemplated in subsection (3) may only be issued by a judge
or a magistrate if it appears from the information given by the inspector under oath or
affirmation that—
(a) there are reasonable grounds for suspecting that a contravention of the Act has
occurred or is occurring;
(b) a search of the premises is likely to yield information pertaining to the alleged
contravention; and
(c) the search is reasonably necessary for the purposes of enforcing the Act.
(5) The search warrant must identify the premises that may be entered and searched
and specify the parameters within which the inspector may perform an entry, search or
seizure.
(6) The search warrant is valid only until—
(a) the warrant is executed;
(b) the warrant is cancelled by the person who issued it or, in that person’s
absence, by a person with similar authority;
(c) the purpose of issuing it has lapsed; or
(d) the expiry of one month after the date it was issued,
whichever occurs first.
(7) The warrant may be executed only during the hours of 08h00 and 17h00 of a day
other than a Saturday, Sunday or public holiday, unless the judge or the magistrate who
issued it authorises that it may be executed at any other time that is reasonable in the
circumstances.
(8) Immediately before commencing with the execution of a search warrant, the
inspector executing that warrant must—
(a) if the owner or person in control of the premises to be searched is present—
(i) provide identification to that person and explain to that person the
authority by which the warrant is being executed; and
(ii) hand exact copies of the warrant and of this section to that person or to
the person named in it; or
(b) if no person is present, affix an exact copy of the search warrant at the entrance
to the premises in a prominent and visible place.
(9) The inspector authorised to conduct search entry and search in terms of a search
warrant issued in terms of subsection (3), may be accompanied and assisted by one or
more police officers.
(10) The inspector and any police officer accompanying the inspector must, when
entering and searching any premises in terms of a search warrant, conduct that entry and
search with strict regard to decency and every person’s right to dignity, freedom,
security and privacy.
(11) During any search, only a female inspector or police officer may search a female
person and only a male inspector or police officer may search a male person.

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(12) An inspector who removes anything from premises being searched must—
(a) issue a written receipt for it to the owner of or person in control of the premises
in sufficient detail to identify each specific thing so removed; and
(b) return it as soon as practicable after achieving the purpose for which it was
removed to the person from whose control it was taken, unless it is to be used
as evidence in any subsequent proceedings, in which case the inspector must
forthwith in writing inform the person from whose control it was taken of that
fact.
(13) During a search conducted under a search warrant, a person may refuse to permit
the removal of an article, document or record on the grounds that it contains privileged
or protected information, but that person may not cause such article, document or record
to be amended, altered or destroyed until the inspector has been afforded a reasonable
time to act under subsection (14).
(14) If the owner or person in control of an article or document refuses to give the
article, document or record to the inspector conducting the search, that inspector may in
writing request the registrar or sheriff of the High Court that has jurisdiction to attach
and remove the article, document or record for safe custody until a court determines
whether or not the information is privileged or protected.
(15) A police officer who is assisting the inspector in terms of this section may use as
much force as is necessary, including breaking a door or window of the premises, or the
breaking of any lock which prevents the search of any safe, storage facility or other
receptacle on the premises, to overcome resistance by any person to the entry and
search.
(16) Before using force, a police officer must audibly demand admission or access and
must announce the purpose of entry, unless it is reasonable to believe that doing so may
induce someone to destroy, dispose of or conceal an article, document or record that
forms part of the search or is otherwise relevant to the search.
(17)Aperson who submits any information to an inspector or makes any statement to
him or her may indicate to the inspector that he or she claims confidentiality in respect
of any information or statement so provided, and the inspector must deal with such
information in accordance with the relevant law.
Compliance notices
26. (1) The Minister must, from time to time, determine—
(a) contraventions of the Act that are of a minor nature; and
(b) contraventions of the Act that are of a substantial nature.
(2) The Minister must publish the determinations referred to in subsection (1) by
notice in the Gazette and the Authority must publish the determinations on its website
and via any other medium it deems fit.
(3) The Minister must, by notice in the Gazette, prescribe the maximum fines in
respect of each type of contravention which the Authority may determine for the
purposes of subsection (5): Provided that such a maximum fine may not for a particular
year exceed the amount prescribed in respect of one year of imprisonment in accordance
with the Adjustment of Fines Act, 1991 (Act No. 101 of 1991), at any particular moment
in time.
(4) The Authority may, where an inspection or investigation by an inspector indicates
a contravention of this Act which is of a minor nature as determined under subsection
(1), issue a compliance notice in the prescribed format to the person so allegedly
contravening this Act, calling on that person to comply with this Act within a period
specified in the compliance notice, which period must be reasonable in the circumstances.
(5) The Authority may, in the compliance notice, determine a fine to be paid by the
person concerned if such person, in writing, on the compliance notice acknowledges his,
her or its failure to comply with this Act as stated in the compliance notice.

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(6) The fine contemplated in subsection (5) must be paid to the Authority within a
period specified in the compliance notice.
(7) Any fine paid in consequence of a compliance notice accrues to the Fund, and the
person named in that notice may not be prosecuted for having committed such
contravention.
(8) Any contravention of a minor nature may not be taken into consideration when
considering any application by or other proceedings against the person concerned.
Fine as compensation
27. (1) The Authority may, whenever a fine has been imposed on a property
practitioner under this Act and taking into account any amounts paid under the
mandatory indemnity insurance contemplated in section 57, if any, order that any
portion of the fine be applied towards the payment of compensation to any person who
suffered a pecuniary loss as a result of the conduct of that property practitioner.
(2) The Authority may, on receipt of a fine imposed on a property practitioner, make
the payment contemplated in subsection (1), but no such payment may be made until all
appeals in respect of the imposition of the fine have lapsed or have been finalised or
abandoned.
(3) This section does not preclude any person from referring any dispute against a
property practitioner or other person to the Authority, but if an award is made by an
Authority in favour of a person who has received payment from the Authority as
contemplated in subsection (2), the Authority must take that payment into account.
Lodging of complaints
28. (1) Any person may, in the prescribed form, lodge a complaint with the Authority
against a property practitioner in respect of financing, marketing, management, letting,
hiring, sale or purchase of property.
(2) The Authority must, in writing, within seven days acknowledge receipt thereof
and inform the complainant of the case number assigned to the complaint.
(3) After receiving the complaint, the Authority may require the complainant to
submit further information or documentation in relation to the complaint.
Mediation
29. (1) An Authority may—
(a) if it believes that a complaint may be resolved through mediation; or
(b) on application by the person concerned,
refer the complaint for mediation, as prescribed.
(2) Within seven days of referral to mediation, the Authority must appoint a suitably
qualified person as a mediator.
(3) The mediator must within seven days of appointment—
(a) give notice of the mediation as prescribed to all parties concerned; and
(b) set the matter down for mediation within 30 days.
(4) (a) The mediator assists the parties to resolve the dispute.
(b) If the parties come to an agreement which resolves the matter or mediation has
failed, the mediator must—
(i) issue a certificate stating the outcome of the mediation; and
(ii) serve a copy of that certificate on each party to the dispute.
(5) The Authority must keep the records of all mediation proceedings, including the
agreements where applicable, as prescribed.
(6) Notwithstanding the provisions of subsection (1), property practitioners may
consent to refer an inter-property practitioners’ dispute for mediation by the Authority,
and the Authority may provide such mediation service on a cost recovery basis.

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(7) If a matter is not resolved as contemplated in this section, the matter must be
adjudicated in accordance with section 30.
Adjudication
30. (1) If—
(a) a person on whom a compliance notice has been served in accordance with
section 26—
(i) fails to comply with this Act as demanded in the compliance notice;
(ii) fails to timeously comply with the compliance notice; or
(iii) fails to timeously pay the fine determined by the Authority; or
(b) mediation has been attempted in accordance with section 29 but has failed;
(c) the serious nature of the complaint and the contravention in question warrants,
the Authority must cause a notice of adjudication to be served on the person concerned
as prescribed.
(2) The Authority must appoint an independent legally qualified person as an
adjudicator to conduct an adjudication of a complaint in terms of this section, who for
purposes of this section is referred to as the ‘‘adjudicator’’.
(3) The Authority may upon application from the adjudicator on good grounds
appoint independent assessors to assist him or her.
(4) Within 14 days of the appointment of the adjudicator, the adjudicator must—
(a) give notice of the adjudication as prescribed to all parties concerned; and
(b) set the matter down for hearing within 60 days.
(5) The adjudication must be held expeditiously, subject to upholding the rules of
natural justice and in accordance with prescribed procedure.
(6) (a) The adjudicator must upon conclusion of the adjudication make a
determination as to whether the complaint is upheld or not.
(b) If the complaint is upheld, the adjudicator must make an order which in the
circumstances is appropriate, and such an order has the status of an order of a
magistrate’s court and must be executed accordingly.
(7) The order contemplated in subsection (6) may include—
(a) a fine which may not exceed the amount determined by the Minister of Justice
for the purposes of section 29(1)(a) of the Magistrates’ Courts Act, 1944 (Act
No. 32 of 1944);
(b) if appropriate in the circumstances, an order that the Authority pays not more
than 80 percent of the fine as a compensation award to the complainant; and
(c) any other appropriate order under the circumstances.
(8) The adjudicator must upon finalisation of the adjudication process provide written
reasons for any of his or her determinations or orders.
(9) The Authority must keep the records of all hearings, including the order made and
written reasons provided by the adjudicator, as prescribed.
(10) Notwithstanding the provisions of subsection (2), property practitioners may
consent to refer an inter-property practitioners’ dispute for adjudication by the Authority,
and the Authority may provide such service on a cost recovery basis.
(11) Subject to the provisions of subsection (7)(b), any fine paid pursuant to an order
made by the adjudicator accrues to the Fund.
Adjudication Appeal Committee
31. (1) Any person who is aggrieved by the decision of the adjudicator in terms of
section 28 may appeal against such decision to the Adjudication Appeal Committee in
the prescribed format.

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(2) The Authority must, within 14 days of the date on which it received the notice of
appeal in terms of subsection (1), establish an Adjudication Appeal Committee
consisting of three independent suitably qualified persons to hear the appeal.
(3) Within 14 days of the appointment of the Adjudication Appeal Committee, the
Adjudication Appeal Committee must-
(a) give notice of the appeal as prescribed to all parties concerned; and
(b) set the matter down for hearing within 60 days.
(4) The appeal must be held expeditiously, subject to upholding the rules of natural
justice and in accordance with prescribed procedure.
(5) (a) The Adjudication Appeal Committee must upon conclusion of the appeal make
a determination as to whether the complaint is upheld or not.
(b) If the complaint is upheld, the Adjudication Appeal Committee must make an
order which in the circumstances is appropriate, and such an order has the status of an
order of a magistrate’s court and must be executed accordingly.
(6) The Adjudication Appeal Committee must upon finalisation of the appeal process
provide written reasons for any of its determinations or orders.
(7) The Authority must keep the records of all appeals, including the order made and
written reasons provided by the Adjudication Appeal Comittee, as prescribed.
CHAPTER 6
FINANCES
Funds of Authority
32. (1) The funds of the Authority consist of—
(a) monies appropriated by Parliament;
(b) fees paid to the Authority by property practitioners;
(c) all monies derived from any investments in terms of section 33(2); and
(d) all other monies which may accrue to the Authority from any other source.
(2) The Authority must utilise its funds to defray the expenses incurred by it in the
performance of its functions and the exercise of its powers, but—
(a) any monies or other property donated or bequeathed to the Authority must be
utilised in accordance with the conditions of such donation or bequest; and
(b) if the Authority—
(i) after an inspection or investigation has found that a property practitioner
failed to comply with any duty imposed upon him or her in terms of this
Act;
(ii) has incurred any liability to pay costs in respect of any proceedings
instituted by it in terms of this Act for the recovery from a property
practitioner of any amount which is payable by him, her or it to the
Authority or the Fund; or
(iii) has incurred any liability to pay audit fees in respect of an audit done on
the instructions of the Authority in a case where an audit contemplated in
section 54 has not been done,
the Authority may recover the costs of such inspection or investigation in so far as it
relates to such duty or the taxed amount of such costs on an attorney and client scale or
the amount of such audit fees, as the case may be, from the property practitioner
concerned.
(3) The Minister must by notice in the Gazette, prior to the commencement of the Act
and thereafter annually prior to the beginning of a financial year of the Authority, after
consultation with the Board, determine the fees payable in terms of or under this Act.

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Financial year and deposits
33. (1) The financial year of the Authority is the period from 1 April in any year to 31
March in the following year, but the first financial year of the Authority begins on the
date that this Act comes into operation, and ends on 31 March following that date.
(2) The Authority may invest or deposit money of the Authority that is not
immediately required for contingencies or to meet current expenditures on a call or
short-term fixed deposit account with any bank approved by the National Treasury.
CHAPTER 7
PROPERTY PRACTITIONERS FIDELITY FUND
Property Practitioners Fidelity Fund
34. (1) The Fund established by section 12 of the Estate Agents Affairs Act, 1976,
known immediately before the commencement of this Act as the Estate Agents Fidelity
Fund, continues to operate as if it were established in terms of this Act, under the name
Property Practitioners Fidelity Fund.
(2) The following must be paid into the Fund:
(a) All monies paid as fees in accordance with this Act to or on account of the
Fund;
(b) income derived from the investment of monies in the Fund in terms of section
33(2);
(c) all monies recovered by or on behalf of the Fund in the exercise of any right
of action conferred by this Act;
(d) all monies received on behalf of the Fund from any insurance company;
(e) interest paid to the Fund; and
(f) any other monies accruing to the Fund from any other source.
Primary purpose of Fund
35. (1) Subject to the provisions of this Chapter, the Fund must be maintained and
applied to reimburse persons who suffer pecuniary loss by reason of—
(a) theft of trust money committed by a property practitioner who was in
possession of a Fidelity Fund certificate at the time of the theft; or
(b) the failure by a property practitioner to comply with section 54(1) or (3).
(2) No person has any claim against the Authority as contemplated in subsection (1)
unless the claimant has—
(a) within three years after the circumstances giving rise to a claim came into
being, given notice to the Authority of such claim as contemplated in section
37; or
(b) within the three-year period contemplated in paragraph (a) after a written
request was sent to him or her by the Authority, furnished to the Authority
such proof as it may reasonably require.
Control and management of Fund
36. (1) Subject to subsections (2) and (3), the Authority is responsible for the
management and administration of the Fund.
(2) The Authority may, with the approval of the Minister, outsource the management
and administration of the Fund to any portfolio management company or a financial
institution in terms of the Financial Services Board Act, 1990, on the terms and
conditions approved by the Minister, subject to subsection (3).

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(3) Each member of the Board, or if the management and administration of the Fund
has been outsourced to any portfolio management company or institution as
contemplated in subsection (2), that portfolio management company or institution, owes
a fiduciary duty and a duty of care and skill to the Fund, and any such portfolio
management company or financial institution may be held liable in accordance with the
principles relating to breach of a fiduciary duty, for any loss, damages or costs sustained
by the Fund as a consequence of any breach by such portfolio management company or
financial institution of such a duty.
Claims from Fund
37. (1)Aclaim for compensation from the Fund must be lodged with the Authority in
the prescribed manner.
(2) A person is not entitled to claim against the Authority in respect of theft of trust
money by a property practitioner unless such a person has, before lodging a claim with
the Authority, laid a criminal charge against that property practitioner.
(3) The Authority must hold an inquiry in the prescribed manner into any claim
lodged with the Authority in respect of the Fund.
Payments from Fund
38. (1) Subject to the provisions of this Act, the following must, whenever required,
be paid out of the Fund:
(a) The amount of all claims, including costs, allowed or established against the
Fund as provided for in this Chapter;
(b) in the discretion of the Board, any contribution in respect of any expense
incurred by any claimant in establishing a claim;
(c) all legal, accounting and other expenses incurred in investigating and
defending claims made against the Fund or otherwise incurred in relation to
the Fund;
(d) all premiums payable in respect of contracts of insurance entered into by the
Authority in terms of section 40;
(e) the expenses incurred in the management, control and administration of the
Fund by the Authority, or if the management and administration of the Fund
has been outsourced to a portfolio management company or financial
institution as contemplated in section 36(2), by that institution, as the case
may be, in accordance with the terms and conditions approved by the
Minister;
(f) grants as contemplated in section 39; and
(g) any other monies which may be paid out of the Fund in accordance with this
Act.
(2) The Minister may, in consultation with the Board, by notice in the Gazette limit
the amount which may be paid from the Fund in respect of any category of claims.
(3) Any monies in the Fund not immediately required for the purposes of the Fund
must, on the terms and conditions approved by the Minister, be invested with or in an
institution approved by the National Treasury.
Authorisation of grants
39. (1) Subject to the terms and conditions that it may determine, the Board may
authorise grants from the Fund—
(a) with regard to—
(i) research in fields of activity relevant to the business of property
practitioners;
(ii) the maintenance and promotion of the standard of conduct of property
practitioners;

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(iii) the maintenance and promotion of the training standards of property
practitioners;
(iv) the education and training of property practitioners; and
(v) transformation of the property sector;
(b) to any association or society of property practitioners for the purpose of
enabling that association or society to maintain and promote the interests of
property practitioners; and
(c) of the amount that it may determine for the purposes of—
(i) advertising and promoting the services and facilities offered by property
practitioners in general; or
(ii) promoting public awareness in respect of consumer rights in matters
relating to immovable property.
(2) The Board may at any time revoke any authorisation contemplated in subsection
(1) on reasonable grounds.
Indemnity insurance
40. The Authority may in the public interest arrange any group insurance scheme with
any insurer registered as a short-term insurer in terms of the Short-term Insurance Act,
1998 (Act No. 53 of 1998), for the provision of insurance to cover property
practitioners’ liability to members of the public on the grounds of malpractice, up to an
amount determined by the Board.
Fees payable by property practitioner
41. (1) A property practitioner must annually pay to the Fund—
(a) a prescribed application fee for a Fidelity Fund certificate in accordance with
the provisions of section 47; and
(b) any amount that the Minister may, after consultation with the Minister of
Finance and the Board, determine from time to time by notice in the Gazette.
(2) The Minister must in exercising the powers conferred in subsection (1), specify a
method or standard to determine the percentage by which the amounts contemplated in
paragraphs (a) and (b) of that subsection are automatically adjusted annually on 1 April
of every subsequent year, but—
(a) the Minister may at any time override such an automatic adjustment by
making a new determination in terms of subsection (1); and
(b) the Minister must not later than five years after making a determination
contemplated in subsection (1) or paragraph (a), as the case may be, make a
new determination in terms of subsection (1).
Cooperation by claimant
42. (1) A person who has lodged a claim contemplated in section 36(1) must, upon
request by the Authority participate, cooperate and assist the Authority in respect of any
matter concerning the claim.
(2) The Authority may withhold payment from the Fund of any amount payable to a
person who fails or refuses to substantially comply with any reasonable request made in
writing by—
(a) the South African Police Service or other organ of state responsible for
investigating or monitoring crime or criminal activity, to cooperate and assist
in its investigation of any criminal charge laid against a property practitioner;

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(b) the National Directorate of Public Prosecutions, any other prosecuting
authority or any organ of state responsible for asset forfeiture investigations or
proceedings, in respect of any investigation or proceedings in a court of law of
which the relevant property practitioner is the subject or defendant, as the case
may be; or
(c) the Authority to cooperate and assist in—
(i) the investigation of any complaint against the relevant property
practitioner; or
(ii) the exercise of the Authority’s rights and remedies against the relevant
property practitioner pursuant to the provisions of this Act.
(3) Neither the Fund nor the Authority is liable for payment of interest on any amount
withheld as contemplated in subsection (2).
Actions against Authority in respect of Fund
43. (1) No person may commence any action against the Authority for payment from
the Fund after the expiry of three years from the date of a written notification by the
Authority addressed to the claimant, or his, her or its legal representative, if any,
informing the claimant that the Authority—
(a) rejects the claim to which the action relates; or
(b) requires compliance with section 42.
(2) No person may recover from the Authority any amount larger than the difference
between the amount of the loss suffered by him or her and the amount or value of all
monies or other benefits which he or she received or is entitled to receive out of any
other source in respect of such loss.
(3) No right of action lies against the Authority in respect of any loss suffered by—
(a) the spouse, life partner, business partner or immediate family member of a
property practitioner by reason of any negligent or intentional conduct
including theft committed by such property practitioner; or
(b) any property practitioner by reason of any negligent or intentional conduct
including theft committed—
(i) by his, her or its business partner;
(ii) if such property practitioner is a company, by any director of such
company;
(iii) if he or she is a director of a company, by any co-director in such
company;
(iv) if such property practitioner is a close corporation, by any member of
such corporation;
(v) if he or she is a partner in a partnership, by any other partner of such
partnership; or
(vi) by any person employed by him or her as a property practitioner;
(c) any person as a result of negligent or intentional conduct including theft, or as
a result of any other act or omission in connection with trust monies held or
received on account of any other person, by any person referred to in
paragraph (d) of the definition of ‘‘property practitioner’’ in section 1.
Application of insurance monies
44. (1) No claimant having a claim against the Authority under this Chapter has by
virtue of any contract entered into in terms of section 40 by the Authority with an insurer,
have any right of action against that insurer.
(2) No claimant having a claim against the Authority under this Chapter has any right
or claim in respect of any money paid or payable to the Authority by an insurer in
accordance with a contract entered into in terms of section 33, but such money must be
paid into the Fund and applied by the Authority in accordance with the provisions of this
Chapter to settle any relevant claim.

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Transfer of rights and remedies to Authority
45. If the Authority settles in full or in part any claim under this Chapter, all the rights
and remedies of the claimant in respect of such claim against the property practitioner
concerned or any other person or, in the case of the death, insolvency or other legal
incapacity of that property practitioner or other person, against the estate of that property
practitioner or other person shall pass to the Authority, without qualification or
diminution, to the extent of such settlement.
Fund exempt from insurance laws
46. No provision of any law relating to insurance applies to or in respect of the Fund.
CHAPTER 8
PROPERTY PRACTITIONERS
Application for Fidelity Fund certificate
47. (1) Every property practitioner, excluding a property practitioner referred to in
paragraph (g) of the definition of ‘‘property practitioner’’ in section 1, must, within the
prescribed period and in the prescribed manner, every three years apply to the Authority
for a Fidelity Fund certificate, and such application must be accompanied by the fees
contemplated in section 34.
(2) A property practitioner referred to in paragraph (d) of the definition of ‘‘property
practitioner’’ in section 1, must, within the prescribed period and in the prescribed
manner, apply to the Authority for a registration certificate, and such application must be
accompanied by the fees contemplated in section 34.
(3) Subject to sections 43 and 52, the Authority must, upon receipt of an application
contemplated in subsection (1) or (2) and the relevant fees, if the applicant concerned—
(a) meets or has met all requirements provided for in or under this Act; and
(b) is not disqualified in terms of section 48 from being issued with a Fidelity
Fund certificate,
issue to the applicant concerned a Fidelity Fund certificate in the prescribed form, which
is valid until 31 December of the year to which such application relates.
(4)Aproperty practitioner who applies to the Authority for a Fidelity Fund certificate
or a registration certificate, after the prescribed period referred to in subsection (1) or
(2), or whose application is not accompanied by the fees referred to in section 34, must
in addition to the applicable fee pay a prescribed penalty to the Authority and the
Authority may not issue a Fidelity Fund certificate to the property practitioner
concerned until the penalty has been paid.
(5) A property practitioner may not use or display a lapsed Fidelity Fund certificate.
(6) A property practitioner must, upon request from any relevant party, produce a
Fidelity Fund certificate or certified copy thereof.
(7) A property practitioner whose contact details change during the period of validity
of his, her or its Fidelity Fund certificate, must within 14 days of such a change taking
place in writing provide the Authority with his, her or its new contact details.

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Prohibition on rendering services without Fidelity Fund certificate
48. (1) No person or entity may act as a property practitioner unless, in addition to any
other requirements provided for in or under this Act—
(a) he or she or it has been issued with a Fidelity Fund certificate contemplated in
section 47; or
(b) if he or she or it employs any other person as a property practitioner, that
person has also been issued with a Fidelity Fund certificate contemplated in
section 47.
(2) If an entity is—
(a) a company;
(b) a close corporation;
(c) a trust; or
(d) a partnership,
every director of such a company, every member of such a close corporation, every
trustee of such a trust and every partner of such a partnership, as the case may be, must
have been issued with a Fidelity Fund certificate contemplated in section 47.
(3) Any person who contravenes or fails to comply with subsection (1) is guilty of an
offence.
(4) A person who contravenes or fails to comply with subsection (1) must,
immediately upon receipt of a request from any relevant party in writing, repay any
amount received in respect of or as a result of any property transaction during such
contravention.
(5) A person who fails to comply with a request contemplated in subsection (4) is
guilty of an offence.
(6) The provisions of this section apply irrespective of—
(a) what appellation a person or entity is described by; or
(b) whether he, she or it is registered, certified or appointed or acts in terms of or
under or for purposes of any other Act.
Mandatory time periods for issuing certificates
49. (1) The Authority must, within 30 working days, consider any application
submitted to it in terms of this Act, which fully meets the prescribed requirements,
unless the Authority, on good grounds in writing, informs the applicant of the reasons
why that period is to be extended, provided that such extension may not exceed 20
working days.
(2) The period of 30 working days contemplated in subsection (1) commences afresh
if the Authority requests the applicant to submit additional information or to correct the
said application.
(3) If the Authority has failed to comply with subsection (1), the application is deemed
to have been approved and the Authority must, upon written request by the applicant
within 10 working days, issue the applicant with the relevant certificate.
Disqualification from issue of Fidelity Fund certificate
50. The Authority may not issue a Fidelity Fund certificate to—
(a) any person who—
(i) is not a South African citizen and does not lawfully reside in the
Republic;
(ii) has, at any time in the preceding five years, been found guilty of
contravening this Act, the Estate Agency Affairs Act, or any similar
legislation in any other jurisdiction;

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(iii) has been found in any civil or criminal proceedings by a court of law,
whether in the Republic or elsewhere, to have acted fraudulently,
dishonestly, unprofessionally, dishonourably or in breach of a fiduciary
duty, or of any other offence for which such person has been sentenced to
imprisonment without the option of a fine;
(iv) is of unsound mind;
(v) has, at any time in the preceding five years by reason of improper
conduct, been dismissed from a position of trust;
(vi) is an unrehabilitated insolvent;
(vii) is not in possession of a valid tax clearance certificate;
(viii) has been prohibited by any legislation, enacted in the Republic or
elsewhere, from practicing as a property practitioner or from occupying
a position of trust, including any juristic person to whom the disqualifications
in subparagraphs (ii), (iii), (vi) and (vii) apply with the necessary
changes;
(ix) has been found guilty by a competent tribunal or a court of law of
unfairly differentiating, distinguishing or excluding directly or indirectly
anyone on the basis of race, gender, sex, pregnancy, marital status, ethnic
or social origin, colour, sexual orientation, age, disability, religion,
conscience, belief, culture, language and birth;
(x) is not in possession of a valid BEE certificate;
(b) any property practitioner who or, if such property practitioner is a company,
any director or member of management of that company, or if such property
practitioner is a close corporation, any member referred to in paragraph (a) of
the definition of ‘‘property practitioner’’ in section 1, or if such property
practitioner is a trust, any trustee, or if such property practitioner is a
partnership, any partner, who—
(i) in the preceding five years has been found guilty of contravention of this
Act or the Estate Agency Affairs Act, 1976;
(ii) does not comply with the prescribed standard of training;
(iii) does not have the practical experience determined by the Authority; or
(iv) has at any time been guilty of any act or omission in respect of which any
person had to be compensated pursuant to the provisions of section 38
from the Fund, unless the property practitioner has repaid the relevant
amount in full to the Authority, or the Authority is of the opinion that
satisfactory arrangements for the settlement of such amount have been
made and has confirmed such arrangements;
(c) any property practitioner contemplated in paragraph (a) of the definition of
‘‘property practitioner’’ in section 1, if such property practitioner carries or
intends to carry on business as a property practitioner under a trade name
which is identical or confusingly similar to the trade name of another property
practitioner—
(i) already issued with a Fidelity Fund certificate; or
(ii) whose Fidelity Fund certificate is suspended or has lapsed or been
withdrawn in terms of this Act; or
(d) any property practitioner who is a director of a company, or who is a member
referred to in paragraph (b) of the definition of ‘‘property practitioner’’ in
section 1 of a close corporation—
(i) of which the Fidelity Fund certificate was withdrawn by the Authority in
terms of section 52; or
(ii) which was prohibited in terms of section 48 from operating in any way
on its trust, savings or other interest-bearing accounts referred to in terms
of that section.

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Amendment of Fidelity Fund certificate
51. (1) For the purposes of this section, ‘‘holder’’ means the holder of a Fidelity Fund
certificate.
(2) The Authority may, at any time in writing, inform the holder that the Authority
intends to amend any particulars of the Fidelity Fund certificate held by the holder, and
the Authority must—
(a) provide reasons for the proposed amendment; and
(b) invite the holder to submit a written response within a prescribed period.
(3) The Authority may, after due consideration of any response received, including
that of any person other than the holder, amend the particulars of the Fidelity Fund
certificate and issue an amended Fidelity Fund certificate to the holder.
(4) When issuing the Fidelity Fund certificate contemplated in subsection (3), the
Authority must, simultaneously in writing—
(a) provide the holder with reasons for the amendment;
(b) provide the holder with a copy of any response received from the other person;
and
(c) request the immediate return of the original Fidelity Fund certificate.
(5)Aperson who, in terms of paragraph (c), is requested to return the original Fidelity
Fund certificate to the Authority, must—
(a) do so forthwith; or
(b) if that Fidelity Fund certificate cannot be returned, submit a declaration made
under oath or affirmed to the Authority as to the reasons and circumstances
preventing that person from doing so.
(6) An amended Fidelity Fund certificate comes into operation on the date on which
it is served by the Authority on the holder.
(7) If the holder prevents delays or avoids service of the amended Fidelity Fund
certificate by the Authority or attempts to do so, the amended Fidelity Fund certificate
comes into operation on the date on which the Authority first attempted to serve the
amended Fidelity Fund certificate on the holder.
(8) If the Authority attempted to serve the amended Fidelity Fund certificate on the
holder but was unsuccessful for the reason that the holder prevented, delayed or avoided
the Authority from doing so, the Authority must, for the general public’s information,
publish the date on which the amended Fidelity Fund certificate came into operation,
and the nature or contents of the amendment, in any medium which it deems adequate
for this purpose.
Withdrawal or lapse of Fidelity Fund certificate
52. (1) The Authority may, whether on its own initiative or pursuant to an instruction
issued by a court of law or an adjudicator contemplated in section 30, withdraw a
Fidelity Fund certificate issued to—
(a) any person, partnership or trust summoned in the prescribed manner to appear
before the Authority if that person or trust, without just cause, fails to comply
with the summons and prior to the date of the appearance stated in the
summons has not been excused in writing by the Authority, from so appearing;
(b) a company or close corporation, if—
(i) the Fidelity Fund certificate of any director of the company or of any
member of the corporation has lapsed in terms of subsection (5); or

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(ii) any director of such company, or any member, referred to in paragraph
(a) of the definition of ‘‘property practitioner’’ in section 1, of such
corporation, has lapsed in terms of subsection (5), or any trustee of a trust
or the person responsible for the trust, becomes subject to any
disqualification referred to in section 50(b)(ii) and (iii) or section 50(c);
(c) a person or trust becomes subject to any disqualification referred to in section
50(b)(ii), (iii) or section 50(c).
(2) A person who is in possession or in control of any Fidelity Fund certificate which
has been withdrawn in terms of subsection (1) must refrain from using or displaying that
Fidelity Fund certificate.
(3) A court may, on good cause and upon application by the Authority or any other
competent person, withdraw any Fidelity Fund certificate issued to any person, and
thereupon order that the person contemplated in subsection (2) or any other person to
immediately refrain from using and displaying that Fidelity Fund certificate.
(4) A Fidelity Fund certificate lapses immediately and is of no force and effect if the
person to whom it has been issued—
(a) in the case of a natural person, the person to whom it has been issued dies or
becomes subject to any disqualification referred to in section 50(a)(ii) to (vi);
(b) is a company or a close corporation, and the company or close corporation is
being wound up, whether provisionally or otherwise, or is deregistered, as the
case may be;
(c) is a partnership, and one of the partners is sequestrated; or
(d) in the case of a trust with only one trustee, that trustee is sequestrated.
(5) A person who is in possession or control of a Fidelity Fund certificate which has
been withdrawn or has lapsed must immediately return that certificate to the Authority,
or if that Fidelity Fund certificate cannot be returned, submit a declaration made under
oath or affirmed as to the reasons and circumstances preventing the property practitioner
from doing so.
(6) A person whose Fidelity Fund certificate has been withdrawn in terms of
subsection (1) or has lapsed in terms of subsection (4), may not directly or indirectly
participate in the management of any business carried out by a property practitioner in
his, her or its capacity as such, or participate in the carrying out of such business, or be
employed, directly or indirectly, in any capacity in such business, except with the
written consent of the Authority and subject to the conditions that the Authority may
determine.
(7) A property practitioner may not directly or indirectly in any capacity whatsoever
employ a person contemplated in subsection (6), or allow or permit such person directly
or indirectly to participate in any capacity in the management or the carrying on of his,
her or its business as a property practitioner, except with the consent in writing of the
Authority, and subject to the conditions that the Authority may impose.
(8) The Authority has no liability whatsoever in respect of the withdrawal or lapse of
a Fidelity Fund certificate, except where the withdrawal was due to the Authority’s
negligence.
(9) A person, partnership or trust whose Fidelity Fund certificate has been withdrawn
or lapsed in terms of this section may re-apply for a Fidelity Fund certificate when it, he
or she again qualifies for such a certificate.
(10) A person who uses or displays the Fidelity Fund certificate contemplated in
subsection (2) is guilty of an offence.

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Mandatory display of Fidelity Fund certificate
53. (1) A holder of a Fidelity Fund certificate must—
(a) prominently display his, her or its Fidelity Fund certificate in every place of
business from where he, she or it conducts property transactions, to enable
consumers to easily inspect it;
(b) ensure that the prescribed sentence regarding holding a Fidelity Fund
certificate is reproduced in legible lettering on any letter head or marketing
material relating to that property practitioner;
(c) in any agreement relating to property transactions entered into by him or her
or by his, her or its company, close corporation, partnership, trust or other
entity permitted to conduct the business of a property practitioner, include the
prescribed clause which ensures that he, she or it guarantees the validity of the
certificate.
(2) A person who contravenes subsection (1) is guilty of an offence.
Trust account
54. (1) Every property practitioner—
(a) must open and keep one or more separate trust accounts, which must contain
a reference to this section, with a bank registered in terms of the Banks Act,
1990, (Act No. 94 of 1990);
(b) must immediately after opening a trust account contemplated in paragraph (a)
appoint an auditor as prescribed;
(c) must immediately after opening a trust account as contemplated in paragraph
(a) and appointing an auditor as contemplated in paragraph (b), provide the
Authority as prescribed with all information in respect of such account or
accounts and such auditor; and
(d) or his, her or its responsible or designated employee, as the case may be, must
immediately deposit all trust money held or received by or on behalf of that
property practitioner in the relevant trust account.
(2) Despite subsection (1), any property practitioner may invest in a separate savings
or other interest-bearing account opened by him, her or it with any bank any monies
deposited in his, her or its trust account which are not immediately required for any
particular purpose, provided that—
(a) savings or other interest-bearing accounts must contain a reference to this
subsection; and
(b) property practitioner must as prescribed provide the Authority with all
information in respect of such account.
(3) A property practitioner must retain all trust money deposited in terms of
subsection (1) or invested in terms of subsection (2), until he, she or it—
(a) is lawfully entitled to such money; or
(b) is lawfully instructed in writing to make payment therefrom to any person.
(4) Any bank which manages trust accounts for purposes of this Act must, from time
to time as prescribed, submit a certificate to the Authority declaring interest in respect of
that account.
(5) Every property practitioner must—
(a) keep separate accounting records of all monies deposited by him, her or it in
his, her or its trust account and of all monies invested by him, her or it in any
savings or other interest-bearing accounts contemplated in subsection (2);
(b) balance his, her or its books and records relating to any account contemplated
in paragraph (a) at intervals of not more than one month, and cause them as
well as all his, her or its business accounts or any other account into which
monies are deposited in connection with any property transaction to be
audited by the same auditor contemplated in subsection (1)(b), within six
months after the final date of the financial year of the property practitioner
concerned; and

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(c) administer the accounts referred to in subsections (1) and (2) in the prescribed
manner.
(6) A property practitioner must, forthwith after receipt of an audit report
contemplated in subsection (5)(b), submit that report to the Authority, but a property
practitioner who submits that report later, may upon payment of a prescribed penalty
make a late submission of that report.
(7) Despite subsection (5), the Authority may on good cause at any time order a
property practitioner by notice in writing to submit to the Authority within a period
stated in such notice, but not less than 30 days, an audited statement prepared by an
auditor fully setting out the state of affairs in respect of the matters referred to in
subsection (5)(b).
(8) A court may on good cause, upon application by the Authority or any other
competent person, prohibit any property practitioner from operating in any way his, her
or its trust, savings or other interest-bearing accounts contemplated in subsection (2) and
may appoint a curator bonis to control and administer such trust, savings or other
interest-bearing accounts, with the rights, duties and powers that the court deems fit.
(9) If—
(a) the Authority refuses under the provisions of this Act to issue a Fidelity Fund
certificate to any property practitioner who applied for a Fidelity Fund
certificate;
(b) a Fidelity Fund certificate issued to any property practitioner has been
withdrawn or lapsed without being renewed;
(c) any property practitioner ceases to act as such; or
(d) any property practitioner becomes subject to any disqualification contemplated
in section 50,
the property practitioner concerned must immediately wind up his, her or its trust
account, savings account or other interest-bearing account in the prescribed manner and
pay out in the prescribed manner the amount standing to the credit of any such account
to the persons entitled to it.
(10) Any property practitioner who winds up an account as contemplated in
subsection (10) which contains unclaimed or unidentifiable money, or who has held
monies in his, her or its trust account of which the owner or beneficiary could for longer
than three years not be identified, must pay that money into the Fund to be held in trust,
but the Fund must, upon application in the prescribed manner by the owner or
beneficiary of such money and with the provision of sufficient proof, pay that money to
that owner or beneficiary.
(11) Any money paid into the Fund in accordance with subsection (11) which has
remained unclaimed by the person entitled thereto for a period of 30 years as from the
date upon which such person became entitled to claim that money, is forfeited to the
Fund.
(12) Despite any other law, the amount standing to the credit of the trust, savings or
other interest-bearing account contemplated in subsections (1) and (2) of a property
practitioner, does not under any circumstances form part of the assets of such property
practitioner or, if he or she was a natural person and has died or has become insolvent,
of his or her deceased or insolvent estate.
(13) Despite any other law, no trust money which may have been paid into any
account other than an account contemplated in subsection (1) or (2), whether
erroneously or not, under any circumstances becomes part of any such account, and does
not lose its nature or characteristics as a result of being paid into such other account.
(14) A property practitioner must annually confirm or update the details of his, her or
its auditor as prescribed.

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Duty of property practitioner to keep accounting records and other documents
55. (1) Despite any other law, a property practitioner must for a period of five years
in respect of—
(a) all documents exchanged with the Authority;
(b) if applicable, correspondence with his, her or its employer or franchisor;
(c) any agreement incidental to his, her or its carrying on the business of a
property practitioner;
(d) any agreement, mandate, mandatory disclosure form or other document
relating to the financing, sale, purchase or lease of a property;
(e) any advertising or marketing material related to his, her or its carrying on the
business of a property practitioner; and
(f) any other document prescribed by the Minister,
from the date of the document or the probable date of the document retain that document
and must upon request forthwith provide the Authority with a legible certified copy of
that document.
(2) The documents contemplated in subsection (1) may be stored electronically if
such storage meets the requirements of the Electronic Communications and Transactions
Act, 2002 (Act No. 25 of 2002).
(3) A property practitioner who contravenes subsection (1) is guilty of an offence.
(4) In addition to the duties contemplated in section 54, a property practitioner must
in respect of his, her or its activities—
(a) keep at an address in the Republic the accounting records that are necessary to
fairly reflect and explain the state of affairs—
(i) of all monies received or expended by him, her or it, including monies
deposited to a trust account referred to in section 54(1) or invested in a
savings or other interest-bearing account referred to in section 54(2);
(ii) of all his, her or its assets and liabilities; and
(iii) of all his, her or its financial transactions and the financial position of his,
her or its business; and
(b) cause the accounting records contemplated in paragraph (a) to be audited by
an auditor within six months after the final date of the financial year of the
property practitioner, which final date may not be altered by him, her or it
without the prior written approval of the Authority.
Property practitioner not entitled to remuneration in certain circumstances
56. (1)Aproperty practitioner is under no circumstances entitled to any remuneration
or other payment in respect of or arising from the performance of any act referred to in
subparagraph (i), (ii), (iii) or (iv) of paragraph (a) of the definition of ‘‘property
practitioner’’ in section 1, unless at the time of the performance of that act—
(a) the property practitioner; and
(b) if the property practitioner is a company, every director of such company or,
if such property practitioner is a close corporation, every member referred to
in paragraph (b) of the definition of ‘‘property practitioner’’ in section 1, of
that corporation,
is in possession of a Fidelity Fund certificate.
(2)Aperson referred to in paragraph (f) of the definition of ‘‘property practitioner’’ in
section 1, and a property practitioner who employs such person, is not entitled to any
remuneration or other payment in respect of or arising from the performance by that
person of any act referred to in that paragraph, unless at the time of the performance of
the act that person is in possession of a registration certificate.

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(3) A property practitioner, or anyone who performs any functions or exercises any
powers normally performed or exercised by a property practitioner, who has received
remuneration or other payment contemplated in subsections (1) and (2) must
immediately pay that amount to the Fund, and any affected seller, purchaser, lessor or
lessee may within three years of that money having been paid to the Fund submit a
written claim in respect thereof to the Fund, together with the necessary proof, and the
Fund may pay that amount or a portion thereof to that applicant which is equitable in the
circumstances.
(4) Any amount paid to the Fund contemplated in subsection (3) which is not claimed
within three years irrevocably becomes the property of the Fund.
(5) A conveyancer may not pay any remuneration or other monies to a property
practitioner unless that property practitioner has provided the conveyancer with a
certified copy of his, her or its Fidelity Fund certificate valid during the period or on the
date of the transaction to which such payment relates, and on the date of such payment:
Provided that where all relevant conditions have been met, the conveyancer must pay
the remuneration and other monies.
(6) Nothing in this section prevents the institution, conducting and conclusion of
criminal or any other proceedings in respect of any act contemplated in this section or in
sections 36, 44 or 45.
Mandatory indemnity insurance
57. (1) The Minister may, for the purposes of providing redress in respect of the
contravention of a code of conduct contemplated in section 61 or sanctionable conduct
contemplated in section 62, prescribe indemnity insurance which a property practitioner
must take out and maintain.
(2) The Minister may, when acting under subsection (1), on reasonable grounds
differentiate between—
(a) categories of property practitioners to whom a regulation applies;
(b) the minimum insured amounts in respect of which such insurance must be
taken out and maintained;
(c) the extent to which conduct in contravention of a code of conduct and
sanctionable conduct qualifies for redress under such insurance; and
(d) the maximum amounts payable in terms of such insurance.
Limitation on relationships with other property market service providers
58. (1) A property practitioner may not—
(a) practise in association with any person which or who is prohibited by any law,
any professional code of conduct, any code of ethics or protocol, report or
charter on corporate governance, from doing so; or
(b) enter into any arrangement, formally or informally, whereby a consumer is
obliged or encouraged to use a particular service provider including an
attorney to render any service or ancillary services in respect of any
transaction of which that property practitioner was the effective cause.
(2) The Minister may by regulation prohibit any relationship which could harm the
interests of consumers.
(3)Aperson who renders any service in contravention of this section is not entitled to
any remuneration, payment or consideration in respect of such services rendered, and if
the consumer has paid any remuneration, payment or consideration of the relevant
service provider must immediately upon request in writing by any affected party repay
any such remuneration, payment or consideration, together with interest.


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(4) A person who, within one month of being requested to do so, fails to repay any
such remuneration payment or consideration together with interest is guilty of an
offence.
Insolvency or liquidation of property practitioner
59. (1) A property practitioner who—
(a) commits an act of insolvency;
(b) is insolvent; or
(c) is placed under liquidation, whether provisional or final,
is immediately disqualified to be a holder of a Fidelity Fund certificate and must within
a period of 30 days—
(i) inform the Authority in writing of any matter contemplated in paragraphs (a), (b)
or (c);
(ii) refrain from using and displaying that Fidelity Fund certificate;
(iii) inform his, her or its auditor and the bank holding his, her or its trust account in
writing about the disqualification;
(iv) cease to perform the functions of a property practitioner;
(v) inform his, her or its clients, employees or employers or any other affected
person in writing of that disqualification;
(vi) hand over the administration of his, her or its trust account, together with all
relevant information and records, to the Authority; and
(vii) cause any outstanding matters in consultation with any affected person to be
taken over by another property practitioner.
(2) A person who fails to comply with subsection (1) commits an offence.
(3) The Authority must wind down the trust account of a property practitioner
contemplated in subsection (1) and effect payment of any trust monies in accordance
with the rights of affected consumers and other persons.
(4) In the event of insolvency or liquidation of a property practitioner, trust monies in
the trust account of that property practitioner do not form part of the insolvent estate.
CHAPTER 9
CONDUCT OF PROPERTY PRACTITIONERS
Application of Chapter 9 and Chapter 10
60. The provisions of this Chapter and Chapter 10 apply with the necessary changes
to any person who performs any function or renders any service contemplated in the
definition of ‘‘property practitioner’’ in section (1), irrespective of whether or not that
person is registered with or licensed by the Authority, and in this Chapter and Chapter
10, any reference to a ‘‘property practitioner’’ includes any such person.
Code of conduct for property practitioners
61. (1) The Minister must, after consultation with the Authority, prescribe a code of
conduct which every property practitioner must comply with.
(2) The chief information officers of respectively the Authority and the Department,
as the case may be, must on their respective websites publish the code of conduct current
at the time.
(3) A property practitioner must on request from a consumer provide him or her with
a copy of the code of conduct.

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(4) The Board must annually advise the Minister on the efficacy of the code of
conduct current at the time.
(5) The Minister may, after consultation with the Authority, prescribe norms and
standards in respect of advertising and marketing by property practitioners.
Sanctionable conduct
62. (1) A property practitioner is guilty of sanctionable conduct if he or she or it—
(a) in the same transaction acts as a property practitioner on behalf of two or more
persons whose interests are not in all material respects identical in respect of
that transaction, and receives remuneration from all parties concerned in
respect of such transaction, unless all affected persons in writing agree
thereto;
(b) fails in respect of any act performed by him or her or it as a property
practitioner to give a full and proper explanation in writing, within 30 days of
being called upon by the Authority in writing to do so, to any person having
a material interest in the performance of such act;
(c) fails to pay any money due to the Authority or in respect of the Fund within
one month after such monies become due;
(d) fails to furnish in writing within a period determined by the Authority any
information that the Authority has requested in writing and reasonably
requires in order to properly exercise its powers under this Act;
(e) fails to comply with or contravenes any provision of the code of conduct;
(f) in his or her capacity as a director of a company, or member contemplated in
paragraph (b) of the definition of ‘‘property practitioner’’ in section (1), of a
close corporation, or trustee of a trust, which is a property practitioner and
which failed to comply with section 50 or 51, did not take all reasonable steps
to prevent such failure;
(g) carries on an undesirable practice prohibited under section 63;
(h) commits an offence involving an element of dishonesty;
(i) fails to inform the Authority within 14 days of a change in his, her or its
contact details;
(j) differentiates distinguishes or excludes consumers directly or indirectly on the
basis of their race, gender, sex, pregnancy, marital status, ethnic or social
origin, colour, sexual orientation, age, disability, religion, conscience, belief,
culture, language and birth or commit a criminal offence while performing a
function of a property practitioner; or
(k) fails to comply with or contravenes any provision of this Act.
(2) Subsequent ratification or correction of any conduct contemplated in subsection
(1) does not constitute a defence.
(3) If a property practitioner is found guilty of sanctionable conduct, the Authority
may after the application of sections 3 and 5 of the Promotion of Administrative Justice
Act, 2000 (Act No. 3 of 2000)—
(a) withdraw the Fidelity Fund certificate of that property practitioner;
(b) impose on that property practitioner a fine not exceeding the maximum
amount determined by the Minister of Justice and Correctional Services for
the purposes of section 29(1)(a) of the Magistrates’ Courts Act, 1944 (Act
No. 32 of 1944); or
(c) reprimand such property practitioner and note his, her or its transgression on
its website,
provided that the Authority may suspend payment of a fine or any portion thereof or the
withdrawal of any Fidelity Fund certificate for a period not exceeding three years and on
the further conditions that the Authority may determine.

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(4) The acquittal or conviction of a property practitioner by any court of law upon any
criminal charge is not a bar to proceedings against him or her or it under this Act on a
charge of sanctionable conduct, despite the facts set forth in the charge of sanctionable
conduct constituting, if proved, the offence set forth in the criminal charge on which he,
she or it was so acquitted or convicted or any other offence on which he, she or it might
have been convicted at his, her or its trial on that criminal charge.
Undesirable practices
63. (1) Subject to subsection (2), the Minister may, after consultation with the Board,
by notice in the Gazette, declare a particular business practice in the property market to
be undesirable and consequently prohibited.
(2) When deciding whether or not a declaration contemplated in subsection (1) should
be made, the Minister and the Board must consider—
(a) the right of every citizen to freely choose their trade, occupation or profession;
(b) that the practice concerned, directly or indirectly, has or is likely to have the
effect of—
(i) damaging the relations between property practitioners, or any specific
property practitioner, on the one hand, and any specific consumer,
category of consumers or the general public on the other hand;
(ii) unreasonably prejudicing any consumer or category of consumers;
(iii) deceiving any consumer or category of consumers; or
(iv) unfairly affecting any consumer or category of consumers; and
(c) that if the practice is allowed to continue, one or more of the objects of this Act
as contemplated in section 2 will or is likely to be defeated.
(3) The Authority may issue a compliance notice contemplated in section 26 directing
a property practitioner who, on or after the date of the publication of a notice
contemplated in subsection (2) carries on a business practice in contravention of that
notice, to rectify to the satisfaction of the Authority anything which was caused by or
arose out of the carrying on of the business practice concerned, or otherwise deal with
the matter as authorised by this Act or any other applicable law.
Supervision of candidate property practitioners
64. (1) A candidate property practitioner may not draft or complete any document or
clause in a document—
(a) conferring any mandate on any property practitioner to perform any act
referred to in paragraph (a), (c) or (d) of the definition of ‘‘property
practitioner’’ in section 1; or
(b) relating to the sale or lease of property.
(2) A person who contravenes subsection (1) and a property practitioner who allows
an act contemplated in subsection (1) is not entitled to any payment, remuneration,
consideration or damages in respect of or by reason of any document contemplated in
that subsection or for bringing about the transaction or agreement embodied in that
document.
(3) In any proceedings in respect of sanctionable conduct, it is no defence that the
principal property practitioner was not aware of the acts or omissions of the property
practitioner or the candidate property practitioner.
(4) A principal property practitioner who conducts business from more than one
business premises must supervise and control the property practitioners and candidate
property practitioners in his, her or its employ, despite the fact that those property
practitioners conduct their business in branch or other offices.


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Franchising
65. (1) A franchisee property practitioner may not carry on business under the name
of a franchise unless a franchisee property practitioner is the holder of a Fidelity Fund
certificate.
(2) A franchisee property practitioner must disclose clearly and unambiguously in all
his, her or its written communication, advertising and marketing materials that he, she
or it operates in terms of a franchise agreement, as well as the name of the franchisor.
(3) The Authority may withdraw the Fidelity Fund certificate of a franchisee property
practitioner who carries on business in contravention of subsection (1) or (2).
Prohibition on conduct to influence issue of certain certificates
66. (1) A property practitioner may not in any way offer or receive financial or other
incentive to, or otherwise influence, a person who at the request of a seller or lessor
issues a certificate required by law, based on his or her expert opinion, in respect of—
(a) the condition or defects of electrical wiring;
(b) the presence of vermin;
(c) the presence of water or damp; or
(d) any other relevant matter or condition which may be provided for in any law.
(2) A property practitioner who contravenes subsection (1) or a person who accepts
any such incentive is guilty of an offence.
CHAPTER 10
CONSUMER PROTECTION
Mandatory disclosure form
67. (1) A property practitioner must—
(a) not accept a mandate unless the seller or lessor of the property has provided
him or her with a fully completed and signed mandatory disclosure in the
prescribed form; and
(b) provide a copy of the completed mandatory disclosure form to a prospective
purchaser or lessee who intends to make an offer for the purchase or lease of
a property.
(2) The completed mandatory disclosure form signed by all relevant parties must be
attached to any agreement for the sale or lease of a property, and forms an integral part
of that agreement, but if such a disclosure form was not completed, signed or attached,
the agreement must be interpreted as if no defects or deficiencies of the property were
disclosed to the purchaser.
(3)Aproperty practitioner who fails to comply with subsection (1) may be held liable
by an affected consumer.
(4) Nothing in this section prevents the Authority from taking action against a
property practitioner or imposing an appropriate sanction.
(5) Nothing in this section prevents a consumer, for his or her own account, from
undertaking a property inspection to confirm the state of the property before finalising
the transaction.
Agreements
68. (1) An agreement to sell and purchase or to let and hire property, or the mandatory
disclosure form contemplated in section 67, must be drafted by the developer or seller,
as the case may be, for his, her or its own account.
(2) The Authority must publish from time to time an updated version of guideline
agreements on its website.

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Consumer education and information
69. (1) The Authority must from time to time conduct campaigns to educate and
inform the general public of their rights in respect of property transactions and property
practitioners of their functions, duties and obligations.
(2) A property practitioner owes a buyer and a seller a duty of care.
CHAPTER 11
GENERAL
Regulations
70. (1) The Minister may, subject to subsection (2), make regulations regarding any
matter that may or must be prescribed in terms of this Act or any incidental matter of a
procedural or administrative nature that the Minister considers necessary to prescribe in
order to achieve the objects of this Act.
(2) Before making any regulation the Minister must—
(a) consult the Board; and
(b) publish the proposed regulations for public comment and allow at least 30
days for submission of such comment.
Penalties
71. A person convicted of an offence in terms of this Act is liable to a fine or to
imprisonment for a period not exceeding 10 years
Delegation of powers
72. (1) The Minister may, subject to subsections (2) and (3), delegate any power or
duty assigned to him or her in terms of this Act, excluding the power to make regulations
contemplated in section 70, to the Director-General or to any other senior official in the
Department.
(2) A delegation in terms of subsection (1)—
(a) is subject to any limitations, conditions and directions the Minister may
impose;
(b) must be in writing;
(c) may include the power to sub-delegate; and
(d) does not divest the Minister of the responsibility concerning the exercise of
the power or the performance of the duty.
(3) The Minister may confirm, vary or revoke any decision taken in consequence of
a delegation or sub-delegation in terms of a provision of this Act or the Estate Agency
Affairs Act.
(4) A quarterly report must be submitted to the Minister in respect of any power or
duty delegated in terms of subsection (1).
Legal proceedings against Authority
73. (1) Any legal proceedings against the Authority must be instituted in accordance
with the Institution of Legal Proceedings Against Certain Organs of State Act, 2002 (Act
No. 40 of 2002).
(2) The Authority is, for the purposes of subsection (1), deemed to be an organ of state
contemplated in paragraph (c) of the definition thereof in section 1 of the said Act.

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Use of name of Authority
74. (1) Unless authorised in writing by the Authority to do so, no person other than the
Board or authorised employees of the Authority may in any way—
(a) use the name of the Authority;
(b) represent or make use of descriptions, logos, designs or advertising material
used or owned by the Authority, or anything which a reasonable person will
interpret to refer to the Authority except as provided for in this Act; or
(c) use a description signifying or implying some connection between that person
and the Authority, except as provided for in this Act.
(2) Any person who contravenes subsection (1) is guilty of an offence.
Transitional provisions
75. (1) Upon the commencement of this Act—
(a) the juristic person known as the Estate Agency Affairs Board established by
section 2 of the Estate Agency Affairs Act, and any committee of the Estate
Agency Affairs Board appointed in terms of that Act, is hereby disestablished;
(b) the members of the Estate Agents Affairs Board in office immediately before
this Act takes effect, become members of the Property Practitioners Board,
and must be regarded as having been appointed to the Property Practitioners
Board in terms of section 7;
(c) the members contemplated in paragraph (b) hold office for the unexpired
period for which such members have been appointed as members of the Estate
Agents Affairs Board, as at the date of such members’ assumption of office in
the Property Practitioners Board in terms of paragraph (b);
(d) every person employed permanently by the Estate Agency Affairs Board
immediately prior to the commencement of this Act is regarded as having
been appointed in terms of section 17;
(e) the remuneration and other terms and conditions of service of any person
contemplated in paragraph (d) may not be less favourable than the
remuneration, terms and conditions applicable to that person immediately
before the commencement of this Act and he or she remains entitled to all
rights, benefits and privileges to which he or she was entitled immediately
before that date, including—
(i) employer contribution to a pension fund;
(ii) employer contribution to a medical aid scheme;
(iii) employee contributions in connection with membership of a pension
fund or medical aid scheme;
(iv) accrued pensionable service;
(v) accrued leave benefits; and
(vi) retirement at a specific age;
(f) every person contemplated in paragraph (d) remains subject to any decisions,
proceedings, rulings and directions applicable to that person immediately
before the commencement of this Act; and
(g) any proceedings against a person which were instituted in terms of or under
the Estate Agency Affairs Act, immediately before the commencement of this
Act, must be disposed of as if that Act had not been repealed.
(2) For the purposes of the Income Tax, 1962 (Act No. 58 of 1962), no change of
employer is regarded as having taken place when a person is appointed by the Authority
in terms of section 17.
(3) Upon the commencement of this Act—
(a) all movable, immovable and intellectual property of the Estate Agency Affairs
Board, including all financial, administrative and other records of the Estate
Agency Affairs Board and all documents in the possession of the Estate
Agency Affairs Board, is transferred to the Authority, which then acquires
such property;


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(b) the rights, duties, liabilities and obligations relating to the Estate Agency
Affairs Board are transferred to the Authority;
(c) the Estate Agency Affairs Board is substituted by the Authority as a litigant in
all pending litigation or proceedings; and
(d) all valid and binding agreements entered into by the Estate Agency Affairs
Board shall be binding on the Authority as if the Authority had been the
contracting party.
(4) All funds of the Estate Agents Fidelity Fund immediately before the commencement
of this Act are upon commencement of this Act transferred to the Fund, and a claim
for compensation instituted against the Estate Agents Fidelity Fund before commencement
of this Act must be paid from the Fund if such claim is successful.
(5) Any claim with regards to the theft of trust money by a property practitioner
committed before the commencement of this Act or the failure of a property practitioner
to comply with section 35(1) or (2)(e) of the Estate Agency Affairs Act, in respect of
which no proceedings were instituted before the commencement of this Act, must within
two years of the commencement of this Act be instituted, and then finalised in
accordance with the Estate Agency Affairs Act as if that Act had not been repealed.
(6) All regulations made in terms of the Estate Agency Affairs Act remain in full force
and effect as if they had been made in terms of or under this Act.
Repeal
76. The Estate Agents Affairs Act, 1976 (Act No. 112 of 1976), is hereby repealed.
Short title and commencement
77. This Act is called the Property Practitioners Act, 2019, and comes into operation
on a date fixed by the President by proclamation in the Gazette.

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