PPRA Reviews Real Estate Sector BEE Requirements: Temporary Relief for Property Practitioners
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After positive discussions between the Property Practitioners Regulatory Authority (PPRA) and the National Association of Managing Agents South Africa (NAMA) on behalf of its members, there is good news for the real estate sector. Property practitioners will, for now, no longer need to confirm their Level 8 BEE status to obtain a Fidelity Fund Certificate (FFC).
Earlier in 2024, the PPRA had made Level 8 BEE compliance a non-negotiable requirement for all real estate agencies with a turnover of more than R2.5 million to secure FFCs for 2025. This mandate, based on Section 48 of the new Property Practitioners Act (effective February 2022), created concerns, particularly as it would have affected approximately 6,000 property practitioners who might fall short of the required BEE level.
In response, NAMA advocated on behalf of its members, urging the PPRA to reconsider the stringent BEE requirements, highlighting the potentially devastating impact on the industry. Following these discussions, the PPRA has confirmed that, pending a final decision by its board, the Level 8 BEE requirement will be suspended. However, property practitioners must still provide a valid BEE certificate issued by an accredited provider.
Should the PPRA’s board finalise this decision, those practitioners will be able to renew their FFCs and continue trading, provided they meet all other compliance requirements. This development brings temporary relief to the real estate industry, allowing time for further considerations and adjustments.
In this episode of Fitzanne’s Property Exchange, Pearl Scheltema talks to Rudi Heerschop, Director at Schuler, Heerschop and Pienaar Attorneys, about this decision and their role in negotiations between NAMA and the PPRA.
Earlier in 2024, the PPRA had made Level 8 BEE compliance a non-negotiable requirement for all real estate agencies with a turnover of more than R2.5 million to secure FFCs for 2025. This mandate, based on Section 48 of the new Property Practitioners Act (effective February 2022), created concerns, particularly as it would have affected approximately 6,000 property practitioners who might fall short of the required BEE level.
In response, NAMA advocated on behalf of its members, urging the PPRA to reconsider the stringent BEE requirements, highlighting the potentially devastating impact on the industry. Following these discussions, the PPRA has confirmed that, pending a final decision by its board, the Level 8 BEE requirement will be suspended. However, property practitioners must still provide a valid BEE certificate issued by an accredited provider.
Should the PPRA’s board finalise this decision, those practitioners will be able to renew their FFCs and continue trading, provided they meet all other compliance requirements. This development brings temporary relief to the real estate industry, allowing time for further considerations and adjustments.
In this episode of Fitzanne’s Property Exchange, Pearl Scheltema talks to Rudi Heerschop, Director at Schuler, Heerschop and Pienaar Attorneys, about this decision and their role in negotiations between NAMA and the PPRA.
