The practice of many estates and community schemes to regulate estate agents, (presently property practitioners) regarding their rights to market within the estate or scheme, has been addressed in the Regulations promulgated in terms of the Property Practitioners Act, 22 of 2019.
The most frequent transgression is that property practitioners are required to pay “accreditation” fees to trade in certain estates. In many instances specific agents are nominated and owners are limited to a “panel”.
Following the enactment of the Property Practitioners Act, 22 of 2019, and the promulgation of its regulations early in 2022, these arrangements were declared illegal and are thus prohibited.
In terms of section 63(1) of the Property Practitioners Act, 22 of 2019 read with Regulation 35.1, the following business practices are undesirable and therefore prohibited:-
- An estate or scheme may not receive any money from an agent to market in a community scheme and no preferential treatment is permitted.
- No agent may be provided an advantage above any other agent in the marketing of properties within the scheme and no rule that effectively excludes agents is enforceable.
See the Property Practitioners Regulations 2022 (Government Gazette No. 45735: 14 January 2022)