For years, the property industry in South Africa operated under outdated regulations that failed to meet the needs of a modern, inclusive economy. That changed with the introduction of the Property Practitioners Act 22 of 2019 — a piece of legislation that came into effect on 1 February 2022, replacing the decades-old Estate Agency Affairs Act of 1976.

This Act doesn't just update old rules — it completely reshapes the property sector, laying down new requirements for fidelity fund certificates, expanding the definition of who qualifies as a property practitioner, and placing transformation at the heart of the profession. It also brings greater accountability, transparency, and compliance standards — not just for estate agents, but for everyone involved in property transactions, including conveyancing attorneys.

What is the Property Practitioners Act?

The Property Practitioners Act 22 of 2019 is the legislation that now governs the South African property sector. It was introduced to replace and modernise the outdated Estate Agency Affairs Act, which had been in place since 1976. The Act came into effect on 1 February 2022, ushering in a new regulatory era for estate agents, property brokers, auctioneers, and other professionals involved in property transactions.

But the Act does far more than merely update old terminology or tweak technical requirements. It is designed to:

• Promote transformation and inclusivity in the property sector;
• Broaden the scope of regulation to include a much wider category of service providers (now called "property practitioners");
• Establish a new regulator — the Property Practitioners Regulatory Authority (PPRA) — with strong enforcement powers;
• Require greater compliance, especially regarding fidelity fund certificates (FFCs);
• Improve consumer protection by ensuring only authorised and accountable individuals operate in the market.

In short, the Property Practitioners Act is a legal framework that not only governs conduct, but aims to restructure the sector so that it becomes more equitable, accessible, and transparent for all parties involved — from buyers and sellers to agents and attorneys.

Where the previous legislation focused narrowly on estate agents, the new Act casts a much wider net. That brings us to a crucial question: who exactly falls within its scope?

Who is Considered a Property Practitioner?

The Property Practitioners Act 22 of 2019 casts a wide net over who qualifies as a “property practitioner.” It applies to any person (natural or juristic) who, in the ordinary course of business and for gain, performs certain activities on behalf of another person:

• auctions; rents; sells or exhibits for sale or purchase, property or a business;
• manages property;
• negotiates such an agreement;
• canvasses for landlords/tenants/buyers or sellers of properties/businesses; or
• collects or receives rental on behalf of another person;
• acts as intermediary or facilitator in any of the above (neither are defined in the act but a google definition provides the following):
  • intermediary: a person who acts as a link between people in order to try and bring about an agreement;
  • facilitator: any activity that makes a social process easy or easier.

It also includes a home owners association which does any of the above, for gain; and

• anyone employed by a property practitioner to do any of the things above on his / her behalf; and
• includes anyone who sells, or markets time share or fractional ownership (basically a fancy expression for time share!); and includes also
• anyone who is employed to manage / supervise the day-to-day business operations of a property practitioner (office manager); and also
• anyone who arranges:
  • financing for a sale or lease;
  • bridging finance (i.e. where a seller wants to take an advance against the proceeds of his sale) or;
  • acts as a bond broker, (someone who helps a buyer apply for a loan with the banks)
  • except if either of these, fall within the definition of a “financial institution” under the Financial Services Board Act.

It includes directors of companies; members of CC’s and trustees of trusts, if the entity does any of the above; and also,

• Any attorney or person employed by an attorney who renders these services except if that person must hold an FFC with the Attorneys’ Fidelity Fund, and if this work forms part of his / her usual conveyancing or normal practice.
• Anyone may apply to the Minister for exemption (partially or entirely from the Act) for up to 3 years at a time.

The Transformation Fund and Its Necessity

One of the most significant policy shifts introduced by the Property Practitioners Act 22 of 2019 is its direct commitment to transformation within the property sector. This is not just a stated goal — it is legislated through the establishment of the Transformation Fund, aimed at correcting past inequalities and opening doors for historically disadvantaged individuals.

What is the Transformation Fund?

The Transformation Fund is a financial mechanism established under section 21 of the Act. It is managed by the Property Practitioners Regulatory Authority (PPRA) and is funded through various sources, including a portion of fees paid by property practitioners, penalties, donations, and contributions from government.

The fund is intended to:

• Support the development of black-owned property businesses, particularly those owned by women and youth;
• Provide training, upskilling, and business support to historically disadvantaged individuals;
• Offer grants or financial assistance to help emerging property practitioners comply with legal and operational requirements (e.g. obtaining FFCs, office infrastructure, technology);
• Facilitate access to finance, mentorship, and networks for new entrants into the industry.

Why Is It Necessary?

The South African property sector has long been criticised for its lack of diversity and transformation. For decades, systemic barriers kept ownership, capital access, and senior positions concentrated in the hands of a few. The Transformation Fund aims to level the playing field by giving those who were excluded under apartheid policies a genuine opportunity to build sustainable property businesses.

Importantly, this fund is not about tokenism — it’s about enabling real participation in the economic value chain, from sales and rentals to development and finance.

The Property Practitioners Act mandates not only the creation of the fund but also that the PPRA actively promotes, monitors, and enforces transformation targets within the industry.
For property practitioners — especially those applying for FFCs — proof of compliance with transformation objectives may increasingly become a condition for licensing or ongoing registration.

Fidelity Fund Certificates

A central requirement under the Property Practitioners Act is that every property practitioner must hold a valid Fidelity Fund Certificate (FFC) issued by the Property Practitioners Regulatory Authority (PPRA). Without this certificate, it is unlawful to operate as a property practitioner — regardless of how long you’ve been in the industry or how informal your role may seem.

What is a Fidelity Fund Certificate (FFC)?

A Fidelity Fund Certificate is a formal licence issued by the PPRA, confirming that the holder is authorised to practice as a property practitioner for a specified year. It applies to individuals and legal entities alike — including estate agencies, property managers, and directors or members of juristic entities offering property services.

In simple terms, an FFC is proof that:

• You are legally registered with the PPRA;
• You have met the fit and proper requirements set out in the regulations;
• You are authorised to receive and manage trust money on behalf of clients.

Every estate agent, intern agent, principal, business owner, and director involved in property services must hold a current FFC — and must renew it annually.

What is the Purpose of an FFC?

The FFC serves several critical functions:

1. Consumer Protection - It ensures that practitioners who handle client funds are registered, monitored, and accountable. If a practitioner misappropriates trust funds, affected clients may claim from the Fidelity Fund.
2. Industry Regulation - It enables the PPRA to monitor compliance, enforce ethical standards, and ensure only qualified individuals operate in the sector.
3. Professional Legitimacy - Holding an FFC signals to clients, banks, and attorneys that the practitioner is lawfully authorised and trustworthy.
4. Legal Compliance - Without it, a practitioner cannot legally earn commission or fees — even if they successfully conclude a transaction.

What Happens if a Property Practitioner Does Not Have an FFC?

The consequences of operating without a valid FFC are severe:

• The practitioner forfeits the right to claim commission or fees, even if they were the effective cause of a sale.
• The practitioner exposes themselves to legal penalties, including fines or criminal charges under the Act.
• Clients may refuse to pay for services rendered, and such refusal will be legally justified.
• The PPRA may impose disciplinary sanctions, including suspension or deregistration.
• Any trust funds handled without a valid FFC are handled unlawfully, which can trigger claims and reputational damage.

In essence, operating without an FFC invalidates your entire business model — and can severely impact your financial viability and credibility in the market.

What Disqualifies You from Having an FFC?

The Property Practitioners Act and its regulations outline several grounds for disqualification. These include, but are not limited to:

• Previous criminal convictions involving dishonesty (fraud, theft, corruption)
• Being declared insolvent and not yet rehabilitated
• Failure to meet CPD (Continuing Professional Development) requirements
• Non-compliance with auditing and trust account obligations
• Being a person of unsound mind or declared mentally unfit by a court
• Any conduct that, in the view of the PPRA, renders the applicant unfit to practice

Each application or renewal is subject to scrutiny by the PPRA, and the authority retains the right to refuse or withdraw a certificate based on non-compliance or misconduct.

Displaying Your FFC

It is not enough to simply obtain a Fidelity Fund Certificate — the Act requires that you display it prominently in all physical and digital locations where your services are offered.

This includes:

• Your office premises
• Your email signatures
• Your website
• All marketing materials that advertise your services

Failure to display your FFC is considered a compliance offence and may result in disciplinary action or fines.

For agencies, each branch or office must ensure that every practising individual — including interns and support staff performing regulated duties — holds and displays their valid certificate.

Where Does All of This Leave the Conveyancing Attorney?

Conveyancing attorneys sit at the intersection of property law, compliance, and transactional execution. While they are not traditionally classified as property practitioners, the Property Practitioners Act has brought new relevance — and responsibility — to their role in ensuring that transactions are compliant from start to finish.

Under the Act, attorneys who provide services such as marketing, managing, or facilitating property transactions — outside of their formal legal practice — may be considered property practitioners, and thus require an FFC unless exempt under specific legal grounds.

However, in standard conveyancing roles, attorneys are not subject to the Property Practitioners Act if:

• They perform services in their capacity as legal practitioners;
• Their work is governed by the Attorneys Act and the Legal Practice Council;
• They hold a valid FFC from the Attorneys’ Fidelity Fund, which applies to legal practice, not the PPRA.

That said, conveyancers play a critical compliance gatekeeping function in property transfers:

• They must verify whether all estate agents and agencies involved hold valid Fidelity Fund Certificates;
• They are often the ones tasked with disbursing commission, and must do so only to properly registered practitioners;
• They may be held liable for releasing funds to unqualified parties — opening the door to legal or professional risk.

In light of this, conveyancers are encouraged to:

• Request and inspect FFCs before paying out commission;
• Document all communications and confirmations relating to agent compliance;
• Educate their clients — particularly sellers — about the legal requirement to only engage with registered property practitioners.

This highlights how important it is for conveyancers to work closely with reputable estate agencies and to remain up to date with PPRA regulations.

VDM Attorneys – Conveyancing Attorneys in Sandton

The introduction of the Property Practitioners Act 22 of 2019 has reshaped the regulatory environment for property professionals and brought compliance issues into sharper focus than ever before. From the expanded definition of a property practitioner to the strict requirements around fidelity fund certificates, it’s essential that every party involved in a property transaction understands their legal obligations.

We offer practical legal support in property-related matters, with a strong focus on accuracy, compliance, and protecting our clients’ interests. Based in Sandton, our team of conveyancing attorneys is well-positioned to assist individuals and businesses involved in property transactions across the region.

If you require assistance with property law, conveyancing, or legal guidance under the Property Practitioners Act, contact us.