South Africa’s Property Practitioners Act 22 of 2019 reshaped the real estate industry by modernising how estate agents and related professionals are defined, regulated, and held accountable. Our previous blog explored the purpose of The Property Practitioners Act, who qualifies as a property practitioner, and the requirements for holding a valid Fidelity Fund Certificate (FFC).

But registering with the PPRA is only the first step.

What follows is far more important — and potentially more dangerous if neglected. The Act imposes a detailed and enforceable framework for how property practitioners must conduct themselves in practice. It touches everything from how records are stored and how deals are marketed, to who you can work with and what happens if you get it wrong.

Record Keeping 

The Property Practitioners Act requires every registered practitioner to maintain detailed records for a period of five years — and it applies whether your documents are digital or physical. This is more than a housekeeping requirement; it’s a legal obligation that can directly impact your ability to retain your Fidelity Fund Certificate and defend your business in the event of an audit, complaint, or dispute.

What Records Must Be Kept?

According to the Act, property practitioners must retain:

• All correspondence and documentation exchanged with the PPRA
• Agreements related to your business (e.g. mandates, leases, sale contracts)
• All documentation linked to financing, selling, purchasing, or leasing property
• Financial records, including income, expenses, commissions, and trust accounts

However, the Act also includes several less expected categories that have raised eyebrows — and rightly so:

• All correspondence with your employer or franchisor
• Copies of any and all advertising or marketing material
• A record of your assets and liabilities

These “odd” additions suggest that the PPRA intends to scrutinise not just the transactions, but also the conduct, funding, affiliations, and financial position of property practitioners — particularly those tied to national franchise networks or business models with layered ownership.

Why Does This Matter?

Failing to maintain accurate records could result in:

• Non-renewal or revocation of your Fidelity Fund Certificate
• Exposure during random PPRA inspections
• Inability to defend yourself if a consumer files a complaint or initiates legal action
• Fines or criminal penalties for non-compliance with record-keeping laws

In short: if you can’t prove it in writing, it’s as if it never happened — and under the Act, that can cost you everything.

Candidate Property Practitioners 

The Act draws a firm line between fully qualified property practitioners and those still working toward full registration, known as Candidate Property Practitioners. These candidates may be in the process of training, completing internships, or preparing for qualification — but their scope of work is explicitly restricted.

What Candidates May Not Do

According to the Property Practitioners Act:

A Candidate Property Practitioner may not draft or complete any document or clause in a mandate, sale agreement, or lease.

This includes:

• Adding terms to a sales agreement
• Filling in or altering clauses in a lease
• Writing up mandates or agency agreements

Their role is supportive — not transactional. Drafting or altering documents must be left to qualified, registered practitioners who hold full-status FFCs.

Serious Consequences for Breaches

Here’s where it gets especially important for agency owners and principals:

• If a candidate unlawfully drafts or completes a document, the agency loses the right to claim commission — even if the deal was successful.
• This consequence applies regardless of whether the principal or full-status agent was aware of the breach.

In other words, even unintentional delegation or oversight can result in a total loss of earnings — and the law offers no protection for ignorance.

No More Kickbacks or Incentives

One of the most welcome reforms introduced by the Property Practitioners Act is a clear prohibition against financial relationships between practitioners and other service providers that could compromise the independence of referrals. For too long, certain unethical practices have been normalised in the industry — but the law has now caught up.

What the Act Prohibits

A property practitioner may not enter into any arrangement that directly or indirectly:

• Encourages or obliges a client to use a particular service provider (e.g. attorney, bond originator, bridging finance company, compliance specialist)
• Involves any financial or other incentive (even informal) in exchange for a referral
• Results in the practitioner receiving money, discounts, gifts, or benefits from a service provider for sending them business

Even if the term “arrangement” is not clearly defined in the Act, it is widely interpreted to include any financial incentive offered or received in return for influencing a consumer’s choice.

Why This Matters

This is a radical cultural shift for the property industry. For decades, it was common for estate agents to:

• Expect “desk fees” or petrol allowances from attorneys
• Refer sellers only to conveyancers who offered cash incentives
• Receive monthly “thank-you” payments from bond originators or compliance certificate providers

The Act explicitly criminalises these practices.

If a practitioner recommends a conveyancer because they’re paying rent, commission, or offering perks, it is now a criminal offence.

And it doesn’t stop there. If a consumer discovers that their property practitioner was involved in such an arrangement:

• The practitioner must repay any remuneration earned through the deal within 30 days, with interest
• If they fail to do so, they may be prosecuted criminally

How It Affects Conveyancing Attorneys

Attorneys are already governed by strict rules prohibiting “touting” or buying work. They must:

• Avoid offering kickbacks or incentives to agents
• Never solicit business by offering to split transfer fees or fund advertising

Now, the Property Practitioners Act mirrors this standard, reinforcing the principle that referrals must be merit-based and consumer-driven, not financially motivated.

Compliance Certificates – Zero Tolerance for Influence

Compliance certificates — such as electrical, gas, plumbing, or beetle certificates — are essential to most property transactions. These documents confirm that the property meets legal safety and quality standards before transfer. Historically, however, the procurement of these certificates has been vulnerable to abuse and manipulation, with service providers sometimes incentivised to “pass” a property in exchange for future referrals.

The Property Practitioners Act has brought this to a decisive end.

What the Act Says

A property practitioner may not offer, request, or receive any form of financial or other incentive intended to influence a compliance certificate service provider’s report or findings. Similarly, the service provider may not accept such an incentive.

This means:

• No “thank-you” payments
• No promises of repeat work
• No influencing or pressuring the compliance inspector to overlook defects

Any attempt to do so — by either party — constitutes a criminal offence under the Act.

What This Means for Practitioners

This provision protects buyers and tenants from being handed properties with undisclosed or unresolved defects, and it ensures that compliance professionals remain independent and impartial.

For the property practitioner, it means:

• Only engaging legitimate, independent inspectors
• Avoiding any conduct that could be interpreted as undue influence
• Maintaining clear, written records of all compliance service instructions and reports

The Bottom Line

The integrity of a transaction depends on the integrity of its paperwork. Trying to influence a compliance certificate — even subtly — is a clear-cut offence, and the consequences go beyond fines. It could mean criminal prosecution, loss of your FFC, and irreversible damage to your reputation.

Mandatory Disclosure Forms 

One of the most significant compliance tools introduced by the Property Practitioners Act is the mandatory disclosure form. This document must be completed and signed by the seller (or landlord) before a property practitioner may accept a mandate to sell or lease a property.

What the Law Requires

Under the Act:

•   A property practitioner may not accept a mandate unless the seller or lessor has provided a fully completed and signed mandatory disclosure form, in the prescribed format.
•   The disclosure form must be made available to any prospective buyer or tenant as part of the sale or lease agreement.
•  I f the form is not attached, the law will presume that no defects or deficiencies were disclosed.

This presumption can have serious legal consequences — particularly where a buyer or tenant later discovers issues with the property.

What Happens If There’s No Disclosure Form?

If a property practitioner proceeds without a disclosure form:

• It will be legally assumed that the seller disclosed nothing about the property’s defects.
• If the practitioner later tries to argue that a verbal disclosure was made, the law presumes otherwise.
• The practitioner may be held liable by an affected consumer — especially if they try to rely on any unwritten conversation as proof of disclosure.

Important: This doesn’t mean the practitioner is automatically liable for all defects. It simply means they will carry the burden of proof — and must prove disclosure occurred, beyond a reasonable doubt.

What to Do When a Seller Refuses to Complete the Form

This is not uncommon — particularly if the seller:

• Lives elsewhere and hasn’t visited the property in a long time
• Is unaware of the condition of the home
• Feels unsure about what must be disclosed

In such cases, the practitioner must:

1. Ask the seller for a written indemnity stating that they refuse to complete the disclosure
2. Present the buyer or tenant with a blank disclosure form, with a line drawn through it, clearly marked: “SELLER / LANDLORD REFUSES TO COMPLETE”

And most importantly:

        3. Put any disclosures you make to the buyer or tenant in writing, before an offer is made

Why the Form Actually Protects the Practitioner

Many see the disclosure form as a risk. In truth, it’s a form of protection.

• It shows that the practitioner acted transparently
• It provides written evidence that buyers and tenants were advised of the property’s condition
• It helps avoid “he said, she said” disputes after transfer

By making the disclosure form standard practice, practitioners protect themselves from unfair liability — and build trust with consumers in the process.

Duty of Care – What the Law Expects from Property Practitioners

The Property Practitioners Act introduces a formal and enforceable duty of care owed by property practitioners to both sellers and buyers — and by implication, also to landlords and tenants. This is a legal obligation to act with reasonable care, skill, and diligence in the performance of your duties.

What Does “Duty of Care” Mean in Practice?

In simple terms, a property practitioner must:

• Take reasonable steps to ensure that a consumer does not suffer harm or financial loss due to their oversight, misinformation, or negligence
• Anticipate risks and take steps to avoid foreseeable problems
• Act honestly, transparently, and with competence

Failure to meet this duty could expose a practitioner to legal liability, reputational harm, or even the loss of their Fidelity Fund Certificate.

Examples of Where This Duty Applies

Here’s what duty of care looks like in the day-to-day business of selling or leasing property:

• Explaining contracts clearly – ensuring that every term is properly understood before it is signed
• Accurately capturing a client’s intentions in the wording of the agreement
• Disclosing all known defects or material information – including anything the practitioner reasonably ought to know
• Asking the right questions – e.g., has the seller disclosed any defects? Are there building plans? Does the buyer intend to run a business that requires zoning verification?

It also includes:

• Being honest about your own limitations – don’t interpret title deed conditions or comment on zoning laws unless you're qualified to do so
• Staying within your competence – refer to conveyancers or professionals where appropriate

It’s About More Than Avoiding Liability

While the duty of care helps limit legal exposure, its real value lies in building trust with your clients. A practitioner who takes care to verify information, record important disclosures, and offer clear advice demonstrates professionalism and integrity — the very qualities that distinguish a long-lasting career from a risky one.

VDM Attorneys – Property Lawyers and Conveyancing Attorneys in Sandton 

Don’t let a technical misstep cost you your commission, reputation, or career. If you're making disclosures verbally, storing records informally, or unsure whether your referrals or candidates are putting you at risk — it's time to tighten your compliance. 

Contact our team of property lawyers for expert legal advice.