The National Property Practitioners Council has noted that actions are being taken to address the ongoing concern of HOA profit-making practices and has reminded those participating that it is illegal, as outlined by the Minister of Human Settlements.
As part of its mandate to transform the sector, the Property Practitioners Regulatory Authority recently announced a proposal that all real estate agents should meet a level 8 BEE requirement to be eligible to receive an FFC certificate.Vuyiswa Ramokgopa, Chairperson of the NPPC, noted that the council support the PPRA’s desire and legal mandate to promote transformation within the real estate industry.
The NPPC said that while the practices affect many agents, they are particularly anti-transformative. However, Ramokgopa reminded those who are still involved in profit-making practices of Section 63 of the Property Practitioners Act. Rebosa CEO Jan le Roux noted that he was made aware of several cases where the seller’s Rates Clearance Certificate was withheld until the agent involved paid the HOA an ‘agreement’ fee—holding up the seller’s transaction to the benefit of the estate.