MAIN IMAGE: Mamodupi Mohlala, PPRA CEO; Ben Groot of SAPOA; Jan le Roux, CEO of Rebosa; Vuyiswa Ramokgopa, CEO of SAIBPP
Danie Keet
She is optimistic that the new Property Practitioners Authority (PPRA) will be able to deliver on the changes set out in the new Property Practitioners Act (PPA) which came into effect at the beginning of February.
This was the view of Mamodupi Mohlala, CEO of the new PPRA, previously the EAAB at an online property practitioner’s summit held this week.
Mohlala was one of the speakers at a Real Estate Industry Summit held online and hosted by private Property on Thursday morning. Other participants in the first session of the summit were Ben Groot of SAPOA, Jan le Roux, CEO of Rebosa and Vuyiswa Ramokgopa, of SABPP and the NPPC.
Many issues surrounding the new Act and regulations pertaining to the Act were discussed. Aspects such as changes to the path to certification and the implications for all role players, how the new Act will impact on the lives of consumers and practitioners, the different interpretations of the Act and the legal implications thereof and the importance and impact of the act for developers, investors, property owners and managers, were among the many issues discussed. From the discussions it was clear that many participants, more than 6 000 were involved in the session, were fairly up to speed with the new act, but there were as many grey and uncertain areas.
“The new Act has an element of convergence as all regulations and regulatory activities is now done by one body. The main focus is on the protection of the consumer as well as property practitioners. The PPRA has an extended mandate to regulate the industry and we are ready to do this. The Act is long overdue. Th process started in 2019 and we have had time to gear ourselves for this.
“The extension of the mandate of thew Act is important as it is now regulating not only the agents but also other practitioners in the industry. All of them will be regulated by one regulatory body, irrespective of where they sit in the property value chain.
“This is very important from a consumer protection point of view as well as from a transformation and sustainability point of view. Transformation is one of the main priorities addressed by the Act and we welcome the fact that BEE compliance is an important part of this.
“We will in future also run a research centre to provide us with real facts and figures about the 51 000 practitioners we have at present. As a matter of fact, this figure could now become three times more due to the changes in admitting real estate practitioners have changed and in effect opened the industry as regulations ease access to the industry for newcomers. In this way we will be able to add additional skills and efficiency to the industry. Our systems are set up to handle the new requirements of the Act.
“I am also delighted that the transformation trust fund has now been formalised and that for the first time in the history of the industry it is not just talking about transformation, but we can actually spend money on transformation.
“The fact that we have powers of inspection means that the PPRA will be visible on the ground and involved in the sector,” Mamodupi said.
Ben de Groot of SAPOA welcomed the new legislation and said it took a long time to get to this point. There are still a number of uncertainties in the Act and regulations, such as who is included or excluded as property practitioner and how the education will be implemented and a three year programme be reduced to a six month training period.
“However, the ball is now in the court of the industry, and we must make this work and tell the regulator what we want. There are still many questions from our side as to who is regarded as a practitioner and who is excluded. We welcome the educational and transformation aspects and look forward to work with other role players to work on the implementation. From SAPOA’s side we will work with the PPRA to set up proper educational facilities and guidelines for our members.”
Jan le Roux, CEO of Rebosa, express his excitement about the new Act and its Regulations and emphasised that there are now better controls over the industry.
“Agents can now do this training or exam prior to joining the industry and can therefor hit the ground running. In not even six months they can now do six practical modules. The controls are now much better where ion the past half of the industry had to supervise the other half. Now a registered agent must counter sign the recruit’s contracts for the first six months to check them.
“I am especially excited about certain aspects of the Act, such as the fact that the payment of accreditation fees for practitioners to work in security estates have been outlawed which now gives access to market, the new regulations pertaining to the FFCs to allow Practioners more freedom of movement between companies and the standardisation of fees for all levels of certificates irrespective of where the practitioner works and a more practical approach to CPD.
“The is also an obligation on the PPRA to regularly consult with the industry so that we ca participate on a number of clauses in the Act. A number of stumbling blocks have been removed -it is like giving the Authority and the industry a clean slate,” Le Roux stated.
I think the industry can save in the region of R300 million per on the trust accounts that agents don’t need to have on this. I think a number of stumbling blocks have been removed, but there is still a long way to go to implement al the aspects of the new Act,” he said.
Ramokgopa expressed her delight at the prescriptive directions for transformation in the new Act but it all now boils down to the implementation of the Act.
“This boils down to implementation and how we carry out the regulations of thew Act, how all will be funded and where the new focusses will fall. The transformation fund will plug holes and needs to be integrated with the programmes of the PPRA.
“The reforms in the education regulations for the industry is welcome and will be good for the industry. We don’t have to have our hands held. It is all strictly up front. Prospective practitioners now know how to exit current jobs and what is required to get certified. This can bring about a critical switch of knowledge and skill to the industry we are looking for.
“The PPRA has the ball in their court and if they are going to do what is said, should still be seen. Many aspects, such as mandatory disclosure by property owners is welcomed.
“What is critical is to bring the value chain of the real estate sector under one roof of regulation. The previous act focussed on estate agents, but now it is a broader definition. The industry is not only just about the agents, but all also work complimentary to each other with many opportunities for black participation.
“Bringing the transformation conversation onto the main stage of where industry is going is a breakthrough. It reports on where we are now as an industry and country and where we want to go to,” she said.
