The Property Practitioners Regulatory Authority (PPRA) announced on Monday that it will no longer ask for a BEE certificate when issuing Fidelity Fund Certificates (FFCs) to property practitioners. The change follows a High Court decision in early September that struck down the part of the Property Practitioners Act (PPA) that forced the certificate requirement.
For a property practitioner, an FFC is the licence that allows you to operate legally. Without it, you are committing a criminal offence. Until April 2024 the law simply required a valid BEE (Broad-Based Black Economic Empowerment) certificate. In April the PPRA added a new condition, a score of at least 40 points, known as BEE Level 8, and said the rule was non-negotiable. Small agencies, sole traders and even advertisers found themselves caught in a maze of paperwork that many could not meet.
What the court said
The High Court agreed with the challenge brought by the business group Sakeliga. It held that the wording of section 50(a)(x) of the PPA, which says the Authority may not issue an FFC to anyone without a “valid BEE certificate”, is too vague. The court could not determine what document counted as “valid” or what level of compliance was required. Because the law failed the test of legal certainty, the judge declared the whole provision unconstitutional and set it aside.
“Neither the PPA nor the applicable statutory framework identifies with reasonable certainty what document is required, from whom it is required, or what substantive standard must be satisfied for the document to be ‘valid’,” the judgment read. The decision also touched the definition of who counts as a “property practitioner”. The court found the existing definition overly broad, capturing individuals who merely market a personal property or host an advertisement.
While the High Court’s order is immediate, it still needs confirmation from the Constitutional Court before it becomes final. The PPRA noted that the ruling could be reversed if the higher court does not confirm it, or if Parliament amends the legislation.
Implications for small businesses and solo agents
The practical impact is immediate for anyone who struggled to meet the 40-point BEE threshold. Without the need to produce a BEE certificate, many small firms can now apply for, or renew, their FFCs without the extra cost and administrative burden of BEE compliance. That could free up cash for marketing, staff or technology upgrades.
However, the change does not erase all uncertainty. The court left a 24-month suspension on the decision about the definition of “property practitioner” until the Constitutional Court gives a final word. During that period the PPRA will apply a narrower definition that excludes natural persons who only promote a property they own, or who simply host an advert for someone else. If you fall into those categories, you may no longer need an FFC at all.
For those who already hold an FFC, the PPRA said the new rule applies to all applications made after the court’s interim order. Existing certificates remain valid until they expire, but renewal will follow the new, less restrictive path.
What you should do now
If you are a property practitioner, check whether your current FFC is due for renewal within the next 12 months. Contact the PPRA to confirm the documentation they now require, a simple identity check and proof of registration should be enough. For those who were previously denied an FFC because of BEE scores, re-apply now that the barrier has been lifted.
Businesses that rely on property services, from small real-estate agencies to independent property marketers, should also review any internal policies that reference BEE compliance as a prerequisite for hiring or contracting. The legal landscape may shift again if Parliament amends the PPA, so keep an eye on future announcements.
For a deeper dive into how BEE compliance works and what documents are normally required, our compliance-document generator can help you map the current requirements.
Source: BusinessTech. For the regulator’s official statement see the Property Practitioners Regulatory Authority. Related coverage can be found in the Regulatory & Policy section.
