On 14 January 2022, the Regulations to the Property Practitioners Act 22 of 2019, including the Property Practitioners’ Code of Conduct, came into operation. These Regulations sought to address, among other things, certain practices classified as undesirable business practices within the property sector.

More than three years after their introduction, the Property Practitioners Regulatory Authority (PPRA), as the statutory regulator of property practitioners (estate agents), issued a notice confirming that the provisions relating to Undesirable Business Practices have been temporarily suspended, pending the outcome of a final, non-appealable court order in the matter of:

RCC v Minister of Human Settlements and the Property Practitioners Regulatory Authority
(Case Number: 2024/11832)

Effect of the Suspension

In terms of the ruling and related PPRA notice:

• Property practitioners are still required to undergo the prescribed training; and
• They remain liable for the costs associated with such training.

However, payment of these costs is deferred until the final decision of the court is handed down.

In the interim, property practitioners are required to provide the relevant managing organisation (such as a body corporate or homeowners’ association) with security, in the form of a written undertaking, confirming that payment will become immediately due and payable should the court rule against the PPRA.

Unfortunately, the notice does not address arrangements entered into between 14 January 2022 and 2 November 2025, creating uncertainty as to whether penalties imposed during this period are likewise suspended. Based on established legal principles, however, it is unlikely that the PPRA will seek to enforce such penalties before the matter has been finally determined by the court.

Undesirable Business Practices Under the Act

Section 63(1) of the Property Practitioners Act prohibits certain business practices deemed undesirable. The following arrangements are expressly prohibited:

1. Franchise Related Restrictions

Any arrangement whereby a party who directly or indirectly controls a franchised business:

• Requires that franchise properties may only be marketed, promoted, or disposed of through the franchisor or a designated property practitioner; or
• Imposes any form of penalty for failure to do so.

2. Restrictions in Residential Developments

Any arrangement involving a residential property development, including a body corporate or homeowners’ association (collectively referred to as the managing organisation), which:

• Receives money or any other reward in exchange for preferential treatment relating to the marketing of properties;
• Requires properties to be sold only through the managing organisation or a designated property practitioner;
• Requires properties to be sold only to the managing organisation or a designated person or entity;
• Provides an unfair advantage to one property practitioner or group of practitioners over others; or
• Excludes or disadvantages any property practitioner or group from providing services within the development.

Practical Implications

The intention behind these provisions is to promote fair competition, protect consumers from anti-competitive practices, and prevent managing organisations from unfairly controlling or monetising the sale of properties within developments.

While enforcement of these regulations is currently suspended, property practitioners, developers, bodies corporate, and homeowners’ associations should remain mindful that the matter is sub judice and that final court findings may revive enforcement prospectively or retrospectively.

Final Observations

Given the evolving regulatory landscape and the potential for significant financial and legal consequences, stakeholders involved in property sales within estates or sectional title schemes should approach any selling fees, exclusive mandates, or restrictive arrangements with caution.

Professional legal advice is strongly recommended where uncertainty exists, particularly while the outcome of the pending court proceedings remains outstanding.