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Property Practitioners Act, 2019 (Act No. 22 of 2019)

Regulations

Property Practitioners Regulations, 2022

Chapter 7 : Training, Conduct and Consumer Protection Measures

33. Standard of Training

 

33.1 Application

 

33.1.1 This regulation 33 is only of application to property practitioners who are natural persons.

 

33.1.2 The Authority may upon application and good cause shown exempt any person or class of persons from any of the requirements of this regulation 33, whether in whole or in part, by virtue of any existing qualification of such person or class of persons.

 

33.1.3 The Authority may upon application made by any industry representative body other than in respect of estate agents, and on good cause shown, and in good faith consultation with the representative bodies of the relevant industries concerned, vary the provisions of this regulation 33 to accommodate the specific requirements of any particular industry within which a particular category or categories of property practitioners operate.

 

33.2 Establishment of Professional Designation Examination

 

33.2.1 The Authority must consult in good faith with the representative bodies in the various industries in which property practitioners operate, and establish in accordance with the principles set out further in this regulation 33.2—
33.2.1.1 qualification standards for property practitioners;
33.2.1.2 course materials that will enable persons who wish to qualify as property practitioners to be properly equipped as such and to qualify as property practitioners in accordance with the standards established by the Authority;
33.2.1.3 professional designation examinations to be written by persons who wish to qualify as a property practitioners; and

33.2.1.4 standards for the practical training of non-principal property practitioners as referred to in subregulation 33.2.3,

provided always that such standards, course materials, professional designation examinations and standards for the practical training of non-principal property practitioners may vary according to the industry in which such property practitioner operates.

 

33.2.2 The standards, course materials and professional designation examinations referred to above shall be different in respect of non-principal and principal property practitioners, provided that no person shall be entitled to sit the exam for or qualify as a principal property practitioner unless such person has first qualified as a non-principal property practitioner and completed the practical training referred to in the immediately following sub- regulation.

 

33.2.3 Subject only to an exception arising under subregulation 33.2.9 and to the provisions of subregulation 33.4.1, no person shall be entitled to practice as a property practitioner unless such person has first completed a practical training course in respect of non-principal property practitioners relevant to the industry in which such person has sat their professional designation examination as referred to above, which practical training course will constitute a minimum of six modules to be completed over a maximum period of six months. The purpose and object of such practical training will be to equip non-principal property practitioners with the necessary practical skills required in order to enable them to operate in an efficient and appropriate manner as property practitioners in the relevant industry; provided always that notwithstanding the provisions of subregulation 33.2.1, such practical training course shall be designed primarily by the leading industry bodies regulating those areas of industry to which the activities of the various categories of property practitioners relate; provided further that such practical training courses shall be subject to the overall oversight and approval of the Authority, and that such approval shall not be unreasonably withheld or delayed by the Authority.

 

33.2.4 The Authority shall make arrangements so that the professional designation examinations referred to in subregulation 33.2.1.3 will be capable of being written at least four times per annum at such intervals as are determined by the Authority, acting reasonably.

 

33.2.5 The Authority may, if it so deems fit and on good cause shown, permit a person or persons to (a) write the relevant professional designation examination in any official language other than English or (b) be examined orally in respect of the relevant professional designation examination.

 

33.2.6 It shall not be a prerequisite that a person be registered with the Authority as a candidate property practitioner prior to such person being entitled to study for, sit the exams for, and achieve the qualifications in respect of, the standards provided for in this subregulation 33.1.

 

33.2.7 Subject to section 4 of the Act, no person may be issued with a Fidelity Fund certificate by the Authority unless such person has complied with the qualification requirements of this regulation 33.1; provided always that such person shall only be entitled to practice as such in the industry to which the professional designation examination in question relates.

 

33.2.8 Notwithstanding the foregoing, if any person ceases to practice as a property practitioner in the industry in relation to which he or she has qualified as either a non-principal property practitioner or a principal property practitioner (as may be applicable), for a period of in excess of five years calculated from the date upon which his or her professional designation examination as referred to in this regulation 33.1 was passed, such person shall not be entitled to practice as a property practitioner in the industry in question or to be registered as a property practitioner in the industry in question with the Authority (other than in accordance with subregulation 33.4.1) unless such person has again first achieved the qualification in question de novo under the provisions of this regulation 33.1; provided that the Authority may establish a less onerous standard for the purposes of such requalification than the standards and professional designation examinations otherwise contemplated under subregulation 33.2.1 in respect of persons who have not previously achieved the relevant qualifications.

 

33.2.9 Notwithstanding anything to the contrary contained in these regulations—
33.2.9.1 a property practitioner who, on the effective date, is already registered as either a non-principal or principal property practitioner, will be exempted from the requirements of the provisions of subregulation 33.2.1; and
33.2.9.2 the Authority may in good faith consultation with industry representative bodies, establish transitional provisions for the phasing in of some or all of the provisions of this regulation 33.

 

33.2.10 The Authority shall keep and maintain, for a period of 5 years, in electronic format, copies of all examination scripts written by persons in respect of the professional designation examinations and in respect of oral examinations, electronic recordings of such oral examinations.

 

33.3 Further Restrictions

 

33.3.1 For a period of six months following the date upon which a person first becomes qualified and registered as a non-principal property practitioner, such person shall not in their capacity as a property practitioner (a) enter into any mandate for the sale or purchase of any property or the letting or hiring of any property with any member of the public or (b) conclude or cause to be concluded any agreement for the sale or purchase of any property or the letting or hiring of any property, unless such mandate or agreement has first been reviewed and co-signed by another qualified property practitioner (other than a candidate property practitioner as contemplated in regulation 33.4) operating in the same industry registered with the Authority who holds a Fidelity Fund certificate issued by the Authority and who is not subject to the foregoing restriction referred to in this subregulation 33.3.1.

 

33.3.2 A property practitioner who is not subject to the restriction referred to in subregulation 33.3.1 and who co-signs any mandate or agreement as referred to in subregulation 33.3.1 shall assume a duty of ensuring that such mandate or agreement, as the case may be, accords with industry norms and standards and is otherwise compliant with the duties and obligations imposed upon property practitioners in the industry concerned; provided always that such property practitioner who co-signs such mandate or agreement (a) shall be entitled to accept as prima facie correct all information reflected in such mandate or agreement and (b) shall not by virtue of such co-signature have any liability in relation to any matter other than the contents of the document in question.

 

33.4 Candidate Estate Agents

 

33.4.1 Any person who registers with the Authority as a property practitioner in the estate agency industry prior to becoming entitled to practice as a property practitioner as referred to in regulation 33.1 shall be a candidate estate agent.

 

33.4.2 A candidate estate agent may not perform any act as a property practitioner unless the candidate estate agent—
33.4.2.1 has duly disclosed as far as practically possible in relation to the candidate estate agent's activities as a property practitioner, excluding authorized advertisements in the press, that he or she is a candidate estate agent; and

 

33.4.2.2 is acting under the active supervision and control of a:

 

(i)        property practitioner qualified in terms of regulation 33.1 and who is no longer subject to any restriction in terms of regulation 33.3; or

(ii)        a practising attorney, with at least 3 years’ experience, in the case of a person as contemplated in Section 1(f) of the Act;

which supervision and control may be exercised either in person or by means of any electronic medium or application allowing the property practitioner or practising attorney immediate contact with the candidate estate agent;

 

33.4.2.3 is acting under the active supervision and control of a property practitioner qualified in terms of regulation 33.1 and who is no longer subject to any restriction in terms of regulation 33.3, which supervision and control may be exercised either in person or by means of any electronic medium or application allowing the property practitioner immediate contact with the candidate estate agent.

 

33.4.3 A candidate estate agent may not—
33.4.3.1 in any way, directly or indirectly, hold himself or herself out as someone who complies with or advertise that he or she has complied with, the educational requirements contemplated in these regulations;
33.4.3.2 in any manner act or hold himself or herself out as either a property practitioner qualified in terms of regulation 33.1 or as someone who is no longer subject to any restriction in terms of regulation 33.3; or
33.4.3.3 in his or her capacity as a candidate estate agent, complete or draft any documentation relating to any transaction negotiated by him or her in his or her capacity as a candidate estate agent, otherwise than under the supervision of a property practitioner qualified in terms of regulation 33.1 and who is no longer subject to any restriction in terms of regulation 33.3, and who certifies on the documentation in question that the said documentation has been completed under his or her supervision.

 

33.4.4 The property practitioner contemplated in subregulation 33.4.2.3 shall be responsible for all acts of a candidate estate agent done in his or her capacity as such, of which the principal property practitioner is aware.

 

33.4.5 No person may, without the consent of the Authority, act as a candidate estate agent for a period in excess of 180 days in aggregate. After the expiry of such 180-day period, the candidate estate agent shall be obliged to sit for his or her professional designation examination as a non-principal property practitioner, in accordance with the provisions of regulation 33.1; provided that if such person fails to pass the professional designation examination in accordance with the provisions of regulation 33.1, then on application to the Authority and on good cause shown, the Authority may permit such person to again register as a candidate estate agent for a further period of 180 days.

 

33.5 Continuing Professional Development

 

33.5.1 In addition to the educational qualifications referred in regulation 33.1, the Authority may, at any time, prescribe any reasonable continuing professional development requirements for property practitioners, having regard to the various industries within which such property practitioners operate; provided always that all continuing professional development modules will be developed at the instance of the leading representative bodies in such industries, who shall appoint persons having specialist knowledge within the relevant industries concerned to develop and compile such modules.

 

33.5.2 All property practitioners, are required to undergo continuing professional development as prescribed by the Authority in accordance with subregulation 33.5.1, other than candidate estate agents.

 

33.5.3 All continuing professional development requirements prescribed by the Authority in terms of subregulation 33.5.1 must be completed over a rolling three-year cycle on the basis that during such rolling three-year cycle, every property practitioner must complete at least 12 modules of continuing professional development on the basis that a minimum of four modules must be completed during each year of such cycle and that no module may be duplicated during the course of such rolling three-year cycle.

 

33.5.4 Notwithstanding the foregoing, the Authority shall be entitled to approve any business property practitioner or independent training organisation providing continuing professional development and in which regard—
33.5.4.1 such business property practitioner or independent training organisation shall develop modules for the purposes of continuing professional development in compliance with both the rolling three-year cycle requirements of subregulation 33.5.3 and the requirement in subregulation 33.5.3 that there be 12 modules and that a minimum of four modules must be completed during each year of such cycle;
33.5.4.2 the module so prepared by the business property practitioner or independent training organisation shall be submitted to the Authority for review and approval; and
33.5.4.3 the Authority shall not unreasonably withhold or delay any such approval. 3

 

33.5.5 Continuing professional development will be charged for by the Authority at a rate of R 1500 per annum in respect of each property practitioner, other than in the circumstances contemplated in subregulation 33.5.4 which shall be charged for by the Authority at the rate of R 500 per annum, which amounts will in each instance be increased annually on 01 April of each year by a percentage equal to the percentage change in the Consumer Price Index "All items (CPI Headline)" from January of the preceding year to January of the current year as published by Statistics South Africa under Statistical Release P0141 or any other statistical release substituted by Statistics South Africa for Statistical Release P0141 from time to time.