New property act and consumers

From February 1, the new Property Practitioners Act officially comes into effect.

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While this should not affect consumers too drastically, there are a few items of which to be aware of before conducting any real estate transactions.

“There is a lot in this act that just formalises best practices. This is a positive thing as it should enforce higher standards from the property sector as a whole,” said Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa.

Focusing on how the act affects consumers, Goslett explained the main consideration is for sellers and landlords, as both will now be legally required to prepare and share a comprehensive property defects disclosure document with the buyer or tenant.

“Although this was previously considered best practice, not all sellers and landlords would prepare such a document as part of the sale or lease agreement. By enforcing this practice, buyers and tenants are better protected against hidden damages or property defects,” Goslett said.

Another change for consumers is that the real estate professional will have a new governing body presiding over it.

“Previously, consumers could lodge complaints against real estate professionals’ misconduct through the Estate Agencies Affairs Board (EAAB).

“This will now be replaced by a new governing body known as Property Practitioners Regulatory Authority,” said Goslett.

According to the Property Practitioners Act, any person who feels aggrieved by any act or omission of a property practitioner may lodge a complaint with the authority.

Complaints can be filed through the authority’s web portal or otherwise sent by post or delivered by hand to the following address of the Authority – Property Practitioners Regulatory Authority 63 Wierda Road East (Cnr Johan) Wierda Valley, Sandton, Johannesburg, 2196.

Similar to how the process worked before, the complaint needs to be in writing and must contain the name and address of the complainant and of the respondent, as well as the details of the issue at hand, and needs to be signed by the complainant.

Upon receiving the complaint, the authority may investigate the matter further and act if it has reason to believe the conduct of a property practitioner may constitute conduct deserving of sanction. Disputes may be attempted to be resolved through professional mediation at the discretion of the authority.

Goslett mentioned the Act deals with a range of other topics, including the transformation within the real estate profession as well as broadened definitions around who counts as a property practitioner.

“These, however, should not change the manner in which consumers conduct buying, selling or renting a property in South Africa. To learn more about what is covered by the Property Practitioners Act, readers can download its free copy by visiting the government’s website,” he said.

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