Author: Maryna Botha
8 February 2022
Property Practitioners Act | Instalment 9
Less red tape and good news
In this instalment we change tack and highlight some hidden but valuable bits of information from the regulations, to lighten the load of coming to terms with the new Act.
- ONLINE PORTALS
* Parties who are considered to be property practitioners simply because they provide a portal for the advertisement of properties for sale by estate agents, can apply for exemption from the provisions of the Act. That it is assumed that they will do so, appears from the wording of regulation 41.15, which states that where someone applies for exemption who “acts solely as a conduit or platform for the placing of advertisements by property practitioners, such exemption should in the absence of other considerations relating to protecting the interests of consumers, be granted.”
* Note though that this practitioner will have to apply every three years for the exemption to be renewed, and exemptions may be revoked by the Authority.
- TAX AFFAIRS
* Regulation 41.19 is quoted in full. It states that: “Other than for sole proprietors, all property practitioners who are natural persons will, upon making application for a Fidelity Fund certificate, be deemed by the fact of such application itself to have applied for exemption from the provisions section 50 (vii) of the Act and the Authority must by default grant such exemption.”
* Section 50 (vii) relates to the provision in the Act that deals with disqualification from being issued with a FFC. Subregulation (vii) prohibits the Authority from issuing a FFC to someone who is not in possession of a valid tax clearance certificate.
* Thus, regulation 41.19 has the effect that all natural person estate agents (excepting sole practitioners) are automatically assumed to have applied for, and have been granted, an exemption from the requirement to submit a tax clearance certificate.
* It is not necessary to make a formal application for this default exemption.
- BBBEE CERTIFICATE
* Regulation 41.20 is also quoted in full. It states: “All property practitioners who are natural persons will, upon making application for a Fidelity Fund certificate, be deemed by the fact of such application itself to have applied for exemption from the provisions of section 50 (x) of the Act and the Authority must by default grant such exemption.”
* Section 50(x) relates to the provision in the Act that deals with disqualification from being issued with a FFC, and subregulation (x) deals with the requirement to be in possession of a valid BBBEE certificate. Thus it is clarified, if this was even necessary, that natural person estate agents need not obtain BBBEE certificates.
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