 The Property Practitioner Act 22 of 2019 has brought significant changes to the property industry. This act came into effect on the 1st of February 2022. Tonight we unpack all of those things that have caused changes in the property sector. This is the Private Property Podcast. My name is Tumi. Thank you so much for joining us. My guest tonight is Claire Lawrence, who is the Senior Associate and Legal Manager at SSLR Incorporated. Tonight we talk all of those changes and some of the challenges that this Property Practitioner Act has brought to the sector. Claire, good evening and thank you so much for joining us. Hi, Tumi. Thanks for having me. Thank you. You know, we're talking about the Property Practitioner Act. Before we jump into that conversation, tell us about SSLR Incorporated and some of the things that you guys as an organisation do. Right, so SSLR is a law firm. We specialise in property law. All aspects of property law with a focus on evictions and rental. I think our ultimate goal is to transform the property industry. And we do that by changing the law, sometimes in a direct way by actually, you know, things like commenting on draft regulations and sometimes in a less direct way through actually making changes in court, sitting precedents and I think in practice. The hope and goal being that we can strengthen the property industry and I think address a much needed issue in this country, which would be the availability of low-cost housing. Sure. So much for that. And I was talking to someone just earlier on this week and they were talking, well, last week rather, and they were talking about how those people who are in the property space are no longer called estate agents, but rather property practitioners. Please just talk us through how this term came about and why they are now called property practitioners. Yeah, so I think to me, the bigger issue or not the issue, the promulgation of the Act has actually expanded not only the definition, but also the players. There are so many players in the property industry, we limited to just an estate agent or a rental agent. We're forgetting about a lot of players who have actually a duty to uphold, you know, the certain requirements in terms of the Act. So that basically the definition of a property practitioner is any person who manages or deals with the movable property on behalf of the third party in the ordinary course of business. So and so doing that they receive compensation in the form of commission. A lot of the times I get asked, we are, but I manage, you know, we've got a family trust and we manage, I manage the property on behalf of my family. The property, they can't be described as a property practitioner because they're not managing the property on behalf of someone else dealing with the property, should I say. Sure. So the 1st of February 2022 comes and the property practitioner Act gets enforced. What is the property practitioner Act and how does it change the landscape of the property space? Yeah, so I think it was a big scramble in February, which we have witnessed with the promulgation of the Act. The biggest thing I would say is to include all of those roleplayers that I've said, you know, every property practitioner, so that includes managing agents in terms of sectional title schemes, auctioneers, bridging financing companies, et cetera. One of the more notable changes in all things that the property practitioners Act has brought about is the mandatory disclosure form which has been introduced. And I'll touch on that a bit later, but I think if a practitioner doesn't yet know what a mandatory disclosure form suggests that they get acquainted with that relatively quickly. Sure. Thank you so much for that. And tell us about some of the changes that it has brought about. You just mentioned the mandatory disclosure form and I was about to actually ask you about that. So let's also just touch on that in terms of what it is and what it means for even consumers because a consumer might be watching and they're hearing the fact that this form is mandatory and does it impact them? Does it impact their dealings with property practitioners? Just talk us through some of those changes that it has brought. Yeah. And I think it's so important because another point or thing that we want to bring about with the promulgation of Act is to address inequality in terms of protecting the rights of consumers and also developing and making the industry more equitable. So the mandatory disclosure form is a form that should be attached to any agreements, for instance, the most common one would be the offer to purchase agreement. I think there's a misconception amongst practitioners that, you know, for my law, this is now another form of red tape that I have to go through. I have to get this law not to complete yet another document. But actually, it is a saving grace to a practitioner because it's there to protect them. And there's also a misconception in the sense that a practitioner might be under the belief that it's them who has to complete the mandatory disclosure form, but that's not the case. Actually, the owner who has to complete the mandatory disclosure form and sits out in what state the property is at the time that the transaction is concluded. Obviously, one of the biggest changes that the Act has brought about is that if you do not have a mandatory disclosure form in place and if there is a claim made against, for instance, if a purchaser lays a claim in respect of the state of the property, they can actually sue the practitioner in their personal capacity. So it is something extremely important. And yeah, that's pretty much it. Sure. And with all of these changes that it has introduced, especially this new mandatory form, what are some of those changes or some of the things that maybe, in your opinion, you would have hoped were in this new Act, you know, some of the changes that you would have maybe wanted to see or even additions or even omissions that you would have liked to see in the Act? Yeah, I think, to me, if you asked any attorney or lawyer, what would you have done differently? And I mean, there's a multitude of things that we could point to, but there was a greater need in the industry to address the problems with in a quality and obviously the, you know, those all those other role players in the property industry, apart from the state agents who are who are operating and are not held to any regulatory standard. So what I'm saying is, I think it's best to to let property practitioners act, take its course in its current form because it's too early at this stage and there is a greater need to to really give it a shot before we can say this must be changed. Sure. And do you believe that it has addressed those inequalities? Because, I mean, access to to market for a lot of people who want to become property practitioners now, it's called, or estate agents as it was called previously was quite easy. You know, it didn't matter really what you studied. You could have easily become an estate agent. So it allowed, you know, easy access to market. And we're all away, you know, easy access to market really ripple effects into abuse. So are we now saying that those inequalities have not been resolved because of that? I would I would hope to see that in the future. I think for a long time, the property industry has been for lack of a better word of a boys club. And we want to see the introduction of of new players, especially previously disadvantaged persons. And the biggest thing that the Act contributes in this regard is the requirement for all property practitioners to submit a BEE certificate. So I would like to see, I would like to see that change. I obviously can't say we're there yet. But and obviously there are these, you know, we can say, oh, but there's so there's so much more that has to be done. But I think what we're doing is we're creating the we're creating the seats are bigger for more people. Sure. Thank you so much for that. Let's talk about the Fidelity Fund certificate. What is this? And how does it impact or how does it how is it closely related to the act? Yeah, so Fidelity Fund certificates, not something necessarily that was new. It was a requirement in terms of the State Agency Affairs Act. Basically, it's there to protect a consumer who may have suffered fiduciary loss due to theft of funds by a practitioner. I think more than that, it it is that rubber stamp that practitioners require to to show that they are actually registered and recognised by the the regulatory board and also that they are held to the standards of the board. So as I mentioned, they're going to have to obtain or to comply with the BE certificate. And first that they're going to have to get a tax certificate. So the current deadlines for property practitioners who have trading under an existing FFC is set for they've got a deadline until January twenty twenty three. Other guys who are new to the sector will have to obtain this by the end of October. Although I would stress that this is all you know, it's all very it's capable of being changed quite quickly. So I would say keep an eye out on the on the website for for those updates. Sure. And just to add, you know, a question that I'm just really thinking about it as we have this conversation is to say with the with the property practitioner act on one hand and the Fidelity Fund certificate on one hand, do you believe that there is enough regulation that that protects both practitioners as well as consumers in terms of acts and regulations and all of those things that need to be adhered to? Absolutely. Absolutely. And I think the biggest contributor to that is the the encompassing of these other role players in the industry. These guys, you know, sort of went under the radar and they got a cut without having an FFC in place. And I think that the regulatory board obviously wants to to to address this and make sure that all players and not just the state agents are held to a standard to ensure that consumers are protected and and that the regulations are enforced. Sure. No, thank you so much for that. And before we get we get to the tail end of our conversation tonight, what would happen in the event that anybody, whether a property practitioner or even a consumer, is found contravening these acts? Are they facing jail time? Are they facing a fine? Is there something? Sorry, I couldn't hear you there. Could you repeat the last bit? What it was, is are there any repercussions for anybody who is found contravening the act? Yeah, so I think the biggest scary thing is those agents who operate with FFC, they're not entitled to any commission that they would ordinarily be entitled to. And then also those petitioners who don't have the mandatory disclosure form in place are subject to potential personal liability. There is the board, the regulatory board, is pretty much functions as the EA feed it. So this does mean that they have to enforce certain sanctions and disciplinary conduct. Question for tonight is to say in light of the act and some of the regulations that we spoke about, what advice would you give somebody who is a property practitioner and is out there? What advice would you give to them for them to ensure that they comply with the new acts? Yeah, so I would say the biggest thing, and I probably can't stress this enough, is training. So it's imperative and it's not just to get your PDE points. There is so much training resources available and it's actually freely available, even the material that can be found on our website. And if I may also just point some of the viewers to to the property law lines, it's a Facebook group. And it's actually a partnership between SSL, our Incorporated Brunner Small Attorneys. And so basically there we every Wednesday, still in the stay and managing director and Brunner, they sit down and they actually answer everyone's questions. So I think there's a there's a massive, there needs to be a massive emphasis on equipping yourself with with all the information that is available. And thank you so much for coming to the show and equipping a lot of people who are watching tonight with this great information in terms of the property Practitioners Act. Thank you so much for joining us, Claire, and have a good evening. It's my pleasure. Thank you too. And if you are out there and you are a property practitioner, make sure that you get training in terms of the act and know exactly what needs to be done in order for you to be on the right side of the law. Thank you so much for joining us for tonight's episode. And remember, a good dose of property information might just be what you need to get yourself back on that property A game. Until next time, we see you right here on the Private Property Podcast every weekday, 7 p.m. My name is Tumi. Have a good evening.