The Property Practitioners Regulatory Authority (PPRA) appears to be reviewing its plan to enforce tougher Black Economic Empowerment (BEE) rules for estate and rental agencies.
In a webinar earlier this year, PPRA legal manager and acting transformation manager Deli Nkambule said that the PPRA would stop issuing Fidelity Fund Certificates to firms without a compliant BEE certificate – meaning that non-exempt businesses (those with an annual turnover of R2.5m or more) would need to achieve a minimum Level 8 BEE score instead of simply having a validly issued certificate.
But following that announcement, the National Association of Managing Agents (NAMA) wrote to the PPRA on behalf of its members asking them to clarify the BEE certificate requirements. NAMA pointed out that around 6 000 property practitioners would currently fall short of the required BEE Level 8, and argued that it would be devastating to the industry if they couldn’t have their FFCs renewed.
The PPRA has now confirmed that, pending a final decision by its board, property practitioners will not have to achieve a Level 8 BEE score to renew their FFCs. As before, however, they will still need to provide a valid BEE certificate issued by an accredited provider.
If the PPRA’s board finalises that decision, it means that those 6 000 property practitioners will, subject to the other compliance requirements, be able to renew their FFCs and continue to trade. However, the PPRA is still committed to economic transformation, and transformation is also a key objective of the Property Practitioners Act that established it. Estate and rental agents may want to look into ways to improve their BEE scores.
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