MAIN IMAGE: Vuyiswa Mutshekwane, chairperson National Property Practitioners Council (NPPC)
‘Red tape’ is a key constraint to transformation in the property sector. The National Property Practitioners Council has called on government to ease certain restrictions in the regulations of the Property Practitioners Act.
The Property Practitioners Act’s main purpose is to establish the Property Practitioner Regulatory Authority, which will replace the Estate Agency Affairs Board; to regulate the affairs of all property practitioners; to allow for transformation in the property sector and to provide for consumer protection.
Following a lengthy extension due to Covid-19, comments by the real estate industry and the public on the draft Property Practitioners regulations finally closed on 20 November. The regulations will give effect to the Property Practitioners Act and prescribe the rules and procedures property practitioners must operationally adhere to.
Importance of ‘ease of doing business’
The World Bank has linked the concept of “ease of doing business” (EDB) to an enabling environment and defines EDB as the extent to which the regulatory environment is conducive to the starting and operation of a local firm.
Together with its member organisations who collectively employ + 46 000 property practitioners, the National Property Practitioners Council (NPPC) has submitted a detailed and comprehensive response to the draft regulations; amongst them being a call to ease certain restrictions that prohibit transformation and the creation and promotion of an enabling environment for black practitioners.
Also read: Simplify estate agent qualifications for transformation
A key constraint to transformation in the sector is the “red tape” new entrants must circumvent to trade or operate real estate businesses, for example, the onerous education requirements and the mandatory requirement of trust accounts (even for those who do not require them).
NPPC chairperson Vuyiswa Mutshekwane says the council is optimistic that the regulations will embrace new entrants and progress the Department of Human Settlements’ transformation agenda.
“The property sector is central to supporting the real economy and has a vital role to play in the ongoing transformation of our society. We are confident that the new regulations will herald a new progressive era in the real estate sector when published,” says Mutshekwane.
‘Massive collaborative effort’
Mutshekwane has confirmed that the NPPC is satisfied with their submission which follows months of review and assessment with the leading legal minds in the property industry and the assistance and collaboration of the Department of Human Settlements.
“This was a massive effort by all concerned and highlights the magnitude of public/private cooperation and the contribution that can generated when everyone works towards a common goal”, said Mutshekwane.
In November the NPPC also held a virtual town hall meeting with the country’s property practitioners and leading industry panellists including Clem Daniel, director of law firm Cliffe Dekker Hofmeyr (CDH) and Mashilo Pitjeng, chairperson of the research committee of the Property Sector Charter Council (PSCC) to garner the sectors collective opinions for inclusion in its final submission to the minister.
On behalf of the NPPC Mutshekwane says the council wishes to thank all role players for their informed counsel and collaboration and for uniting over the complex and often challenging deliberations.
