The Property Practiopners Bill and its effects on the retirement property market
Category Legal
THE PROPERTY PRACTIONERS BILL AND ITS EFFECT ON THE RETIREMENT PROPERTY MARKET
The promulgation of The Property Practioners Bill is going to have a huge impact on the South African property market and particularly the retirement sector.
The new Act will apply to the marketing, promotion, managing, sale, letting, financing and purchase of immovable property and to any rights, obligations, interests, duties or powers associated with or relevant to such property (quoted directly from the Bill).
Retirement organisations/complexes will be in contravention of the Act which operate on the "Waiting List Model" - whereby a waiting list of potential purchasers/lessees is administered by an employee/manager/agent of the organisation/complex and who facilitates the entire sales/letting process of the retirement units but does not hold a Fidelity Fund Certificate (FFC). The reason being is that, in terms of the Act, the definition of a property practioner is extremely vast and includes any natural or juristic person dealing with immovable property (including life rights, share block and even timeshare) on behalf of another party.
Organisations/Complexes that sell/let their units "in-house" will have to comply with the requirement that any person overseeing and facilitating their sales/letting will still be required to be in possession of an FFC issued by The Property Practioners Regulatory Authority (currently known as The Estate Agency Affairs Board) even though marketing, advertising, canvassing, promotion, show days, etc. (the normal functions of an estate agent/property practioner) is not required due to there being waiting lists.
In terms of the Act, a person or entity who fails to comply with its provisions is found to be guilty of an offense and is liable to a fine or to imprisonment for a period not exceeding 10 years.
Retirement Places Real Estate has been focused exclusively on the retirement market for the past 22 years so we have a wealth of experience in this unique area of the property market and would be able to assist retirement organisations/complexes, once The Property Practioners Bill is promulgated, with little or no upheaval.
To discuss this new legislation further and how we can help you please contact Mark McAlpine on 031 208 5578/084 549 1880 or at mmcalpine@mweb.co.za. We would be more than happy to email you the Bill.
(Please note that this is not a legal opinion, and we advise that you seek legal advice)
Author: Mark McAlpine