The Complete PPRA Guide for Property Practitioners

Who is the PPRA

The Property Practitioners Regulatory Authority, known as the PPRA, is the authority appointed by government to regulate the property industry in South Africa. The PPRA is established under the Property Practitioners Act 22 of 2019 and its Regulations with an intention of ensuring that property practitioners operate legally and professionally. Before this Act was promulgated, the Estate Agency Affairs Act of 1976 regulated the industry and its regulatory board was known as The Estate Agents Affairs Board, or the EAAB. Under this Act, property practitioners were known as estate agents. The new Act gives a notably broader mandate to the PPRA as well as opens more categories of property practitioners.

The Act enforces standards for property practitioners, with its main responsibilities including:

Registering property practitioners and issuing Fidelity Fund Certificates;
Monitoring compliance with the Property Practitioners Act and its regulations;
Investigating complaints and possible misconduct;
Conducting inspections and taking action against non-compliant practitioners;
Supporting the education, training and professional development of property practitioners;
Administering the Property Practitioners Fidelity Fund;
Protecting consumers who use the services of property practitioners; and
Promoting transformation and broader participation in the property industry.

Property practitioners falling under this scrutiny include:

Candidate, non-principal and principal property practitioners. Under the old Act these were known as
intern estate agents
full-status estate agents and
principal estate agents.
Directors and staff of property categories other than real estate.

The PPRA Reporting Structure

The PPRA’s executive management team is led by the Chief Executive Officer. The PPRA is governed by its Board, which is accountable to the Minister of Human Settlements.

In terms of the Property Practitioners Act, the Board consists of between nine and 12 non-executive members appointed by the Minister. The CEO also serves on the Board by virtue of holding that office. The Board provides strategic direction and oversees the governance, performance and accountability of the PPRA.

Who Is Behind the PPRA?

It comes down to one important question: Who watches the watchdog?

The Minister and Department of Human Settlements oversee the PPRA to help ensure that it carries out its legal mandate and remains aligned with national priorities.

This oversight includes governance, compliance with legislation, budget and financial management, transformation within the property sector, performance against strategic objectives and reporting to Parliament.

In short, the PPRA regulates the property industry, while the Minister and Department help ensure that the regulator remains accountable, transparent and aligned with the public interest.

The Law Behind Property

The South African property industry is governed by the Property Practitioners Act No. 22 of 2019, together with other laws that regulate the way property practitioners operate and protect the public.

Some of these Acts are:

The Consumer Protection Act;
The Financial Intelligence Centre Act;
The Protection of Personal Information Act;
The Promotion of Access to Information Act;
The Alienation of Land Act;
The Sectional Titles Act;
The Sectional Titles Schemes Management Act;
The Share Blocks Control Act.

Each piece of legislation plays an important role in ensuring that property transactions are conducted legally, ethically and transparently.

The Property Practitioners Regulatory Authority, commonly known as the PPRA, regulates property practitioners and property businesses operating in the categories covered by the Property Practitioners Act and its Regulations. In a nutshell, the PPRA promotes compliance, regulates professional conduct, supports the required education and training standards and most importantly protects consumers within the property sector.

How the PPRA Protects the Public

The PPRA protects the public by regulating the property industry and requiring property practitioners to operate within a legal and ethical framework. This includes overseeing registration, Fidelity Fund Certificates, adherence to the Code of Conduct and action against undesirable or sanctionable conduct.

The PPRA also provides a process through which members of the public can report alleged misconduct by property practitioners. Once a complaint is received, the PPRA may investigate the matter. Where sanctionable conduct is proven through the prescribed process, the available sanctions may include a warning, a fine or the withdrawal of the practitioner’s Fidelity Fund Certificate. Serious matters may also be referred to the appropriate authorities, ie a Court of Law.

These measures help protect members of the public when buying, selling, leasing, financing or managing property.

How the PPRA Keeps Property Practitioners and Businesses Accountable

Property businesses fall into different categories as regulated by the new Act. These categories are:

Real Estate Agents
Auctioneers-Auctioneers
Bond and Bridging Finance Originators
Home Owner Associations -HOAs who perform property practitioner activities
Managing agents
Property Facilitators and Intermediaries
Business Brokers, including sales of franchises and business undertakings
Developers who market and sell their own developed property
Timeshare and Fractional Ownership practitioners
Property advertising platforms
Property practitioners who specialise in collecting and distributing trust monies in terms of Regulation 2.4.1. (Payment processing agents)
Attorney employees

Every property business must have the appropriate management and supervision required for its PPRA registration category. Depending on the category and business structure, responsibility may rest with a Principal Property Practitioner, director, member, partner, trustee or another responsible person registered with the PPRA.

These individuals are responsible for helping to ensure that the business, its property practitioners and relevant employees comply with the Property Practitioners Act, its Regulations and the Code of Conduct.

Transformation and Youth Projects

For many years, black South Africans did not have the same opportunities to enter, work in or own a business in the property industry. Transformation aims to address this imbalance by making the industry more open, fair and representative of South Africa’s population.

The Property Practitioners Act requires the PPRA to support transformation within the property sector. This includes helping young black people, historically disadvantaged individuals, people with disabilities and black owned small property businesses gain the knowledge, experience and support needed to succeed.

The PPRA’s key transformation objectives include:

Making it easier for Black people and historically disadvantaged individuals to enter the property industry.
Increasing the participation of young and historically disadvantaged property practitioners.
Providing training, workplace experience and mentorship.
Helping more Black property practitioners become principals and business owners.
Supporting small, emerging and Black-owned property businesses.
Developing skills and creating employment opportunities for historically disadvantaged people.
Helping existing historically disadvantaged practitioners and businesses become legally compliant.
Working with government bodies, including Services SETA and the QCTO, as well as industry organisations and private businesses, to create more opportunities.

The PPRA uses transformation programmes, youth initiatives, industry partnerships and the Property Sector Transformation Fund to provide training and business support. One example is the One Learner- One Property Practitioner Programme, which places learners with registered property businesses where they can receive supervised workplace experience.

The overall goal is to create a more inclusive and representative property industry in which historically disadvantaged South Africans have opportunities to enter the sector, develop successful careers, become principals and establish or grow sustainable property businesses.

Financial Intelligence Centre – FIC

The FIC is a South African government agency that works to prevent money laundering, terrorist financing and other financial crimes. Property practitioners must comply with the Financial Intelligence Centre Act by identifying and verifying clients, assessing risks, keeping prescribed records and reporting certain transactions or suspicious activities.

The PPRA is responsible for supervising applicable property practitioners’ compliance with the Financial Intelligence Centre Act, commonly known as the FIC Act.

As part of this responsibility, the PPRA must:

Promote awareness of FIC Act obligations within the property industry.
Monitor whether applicable property businesses are meeting their FIC Act compliance duties.
Conduct compliance inspections using a risk-based approach.
Identify and investigate possible non-compliance.
Work with the Financial Intelligence Centre and other regulatory authorities.
Take appropriate enforcement action where a property business fails to comply.

The PPRA’s role is to help ensure that the property industry is not used for money laundering, terrorist financing, proliferation financing or other financial crimes. Detailed FIC Act requirements for property businesses are covered separately on our FIC Information Page.

Trust Accounts

A business property practitioner must operate a trust account unless the PPRA has issued the business with a valid trust-account exemption letter.

A business that is not exempt must open and maintain a trust account in accordance with section 54(1) of the Property Practitioners Act. Where applicable, it may also operate a separate savings or interest-bearing trust account under section 54(2).

The trust accounts must be audited annually by an auditor registered with the Independent Regulatory Board for Auditors. The audit must be completed within six months after the business’s financial year-end, and the audit report must be submitted to the PPRA.

Businesses that do not handle trust money, or that use a qualifying payment processing arrangement, may apply to the PPRA for exemption. An exemption only applies once it has been granted in writing by the PPRA.

Broad-Based Black Economic Empowerment – B-BBEE

The term now commonly used in South Africa is Broad-Based Black Economic Empowerment, or B-BBEE. It refers to government policies designed to increase the participation of Black South Africans in the economy through ownership, management, employment, skills development and business opportunities.

Section 50 of the Property Practitioners Act requires a valid B-BBEE certificate or other acceptable proof of B-BBEE status for the issue of a Fidelity Fund Certificate.

Under the Amended Property Sector Code, an estate agency, property broking or valuation business with annual turnover below R10 million generally qualifies as an Exempted Micro-Enterprise and may provide a valid sworn affidavit instead of a measured B-BBEE certificate. Different thresholds may apply to other types of property businesses.

The B-BBEE certificate or affidavit must be renewed annually.

SARS Tax Compliance

A property business must be tax compliant and provide the valid SARS tax-compliance documentation required by the PPRA when registering or renewing its registration. The business must maintain its tax-compliant status and update its PPRA records when required.

Education

Property Practitioners holding a Fidelity Fund Certificate in the estate agency category must comply with the education requirements applicable to their status.

The current prescribed education pathways apply to property practitioners registered in the estate agency category. Education and exemption requirements for other property practitioner categories depend on the standards and arrangements implemented by the PPRA for that category.

Candidate Property Practitioners must complete the required practical training and follow an approved education and examination pathway within the periods prescribed by the PPRA. Failure to meet the applicable requirements may affect the candidate’s registration, status upgrade or future Fidelity Fund Certificate renewal.

Recognition of Prior Learning

Recognition of Prior Learning, commonly known as RPL, is an assessment process for people who have already gained relevant knowledge and experience. An accredited assessment centre evaluates the applicant’s evidence against the outcomes of the applicable qualification. Depending on the assessment, the applicant may receive recognition for all or part of the qualification.

Education Exemptions

A property practitioner may apply to the PPRA for an equivalency exemption from the NQF Level 4 or NQF Level 5 Real Estate qualification if an existing qualification meets the requirements of the PPRA’s Equivalency Exemption Matrix.

Minimum requirements:

NQF Level 4 exemption: An SAQA-accredited NQF Level 6 qualification involving at least three years of study.
NQF Level 5 exemption: An SAQA-accredited NQF Level 7 qualification involving at least three years of study.

Please note:

If you receive an exemption from NQF Level 4, you will not be eligible to complete the NQF Level 5 Real Estate qualification. The NQF Level 4 Real Estate qualification is required for entry into the NQF Level 5 programme.

If you qualify for an NQF Level 5 exemption, you should apply for exemptions from both NQF Level 4 and NQF Level 5. This ensures that you are recorded as competent against both qualifications on your PPRA Portal.

An NQF Level 5 exemption does not remove the NQF Level 4 requirement.

PPRA Practical Training

From 1 July 2024, Candidate Property Practitioners are required to complete 180 days of practical workplace training. This requirement was previously recorded through the Intern Logbook and is now completed through the PPRA’s prescribed practical training modules.

Once the practical training modules and supporting evidence have been completed and signed off, the prescribed confirmation letter must be submitted to the PPRA for the candidate’s profile to be updated.

Exemption: Candidates who held an FFC before 2013 are exempt from this practical training requirement.

NQF Level 4 Real Estate Qualification – Optional Pathway

From 1 August 2026, Candidate Property Practitioners wishing to qualify as Non-Principal Property Practitioners may follow the PPRA’s alternative competency-based pathway.

Under this pathway, candidates are not required to complete the NQF Level 4 Real Estate qualification before writing the applicable PPRA examination. They must first complete the prescribed practical workplace training. Once this has been accepted by the PPRA and all examination entry requirements have been met, the candidate may write the examination. Upon passing, the candidate may upgrade to Non-Principal Property Practitioner status.

Important: This pathway is not optional for candidates who intend to become Principal Property Practitioners in the future. Candidates wishing to progress to Principal status should follow the formal qualification pathway, including completing—or obtaining an approved exemption from—the relevant NQF Level 4 Real Estate qualification. They must then meet the additional qualification, practical training and examination requirements applicable to Principal Property Practitioners.

PDE4

To qualify as a Non-Principal Property Practitioner, a candidate must pass the applicable PPRA Professional Designation Examination, commonly known as the PDE4, or the equivalent examination under the PPRA’s approved competency-based pathway. The PDE4 is the last educational requirement for a Candidate to complete.

Once all the requirements have been completed and recorded by the PPRA, the candidate may be upgraded to Non-Principal Property Practitioner status. This is a manual process and must be completed.

NQF Level 5 and PDE5

A Non-Principal Property Practitioner who wishes to become the Principal Property Practitioner of an estate agency must complete, or obtain an approved exemption from, the applicable NQF Level 5 Real Estate qualification. The practitioner must then pass the PDE5 and meet all other PPRA requirements before being registered and issued with a Fidelity Fund Certificate as a Principal Property Practitioner.

Continual Professional Development – CPD

Once a property practitioner has been upgraded to Non-Principal status, they must participate in the PPRA’s Continuous Professional Development programme. Practitioners are currently required to complete four CPD modules each year to keep their professional knowledge and skills up to date.

Consequences of Non-Compliance

A person or business may not act as a property practitioner without the Fidelity Fund Certificates required by the Property Practitioners Act. A business must hold a valid Fidelity Fund Certificate, and every property practitioner, director, member, trustee or partner who is required to hold one must also have a valid certificate.

Under section 56(5) of the Act, a conveyancer may not pay remuneration or other money to a property practitioner unless the property practitioner has supplied a certified copy of the Fidelity Fund Certificate that was valid during the relevant transaction and remains valid on the date of payment.

Non-compliance may result in an investigation, penalties, disqualification from receiving a future Fidelity Fund Certificate or the withdrawal of an existing certificate through the prescribed process. The precise consequence depends on the nature of the contravention.

Let Us Be Your Compliance Watchdog

Running a successful property business takes time and patience. Keeping up with PPRA requirements can quickly become overwhelming.

PPs offers practical compliance packages for everyone working in the property industry. We monitor your compliance requirements, keep you informed of important deadlines and guide you through the processes that affect your business or career.

Explore our compliance services here.

Contact Us

At PPs, we help estate agencies and property practitioners understand and meet their PPRA, FIC, POPIA and PAIA compliance obligations.

Whether you need a complete compliance package, assistance with a specific requirement or simply have questions that need clear answers, our experienced team is here to help.

Let us take care of the compliance details while you focus on growing your property business.

Contact PPs today and let us be your compliance watchdog.

Disclaimer:

This information was accurate at the date of publication. However, legislation, regulations, rulings and regulatory requirements may change without notice. This content is provided for general information and should not be regarded as legal advice. Always confirm the latest requirements before acting.