Sakeliga, a South African business group, has reported a significant win for property practitioners after the Property Practitioners Regulatory Authority (PPRA) reversed a policy requiring high-level BEE compliance for issuing Fidelity Fund Certificates (FFCs). Since April 2024, property practitioners were informed that FFCs, necessary for operation, would be denied if applicants did not meet the required BEE Level 8 compliance. However, Sakeliga challenged this, and legal counsel confirmed that the Property Practitioners Act only mandates a valid BEE certificate, not compliance with a specific BEE level. As a result, the PPRA will no longer enforce BEE compliance, allowing non-compliant certificates to be accepted.

Despite this reversal, Sakeliga highlighted two ongoing concerns: the Act still requires all property practitioners, not just estate agents, to hold FFCs, extending the PPRA’s reach to thousands of businesses. Additionally, while the PPRA now accepts non-compliant BEE certificates, the Act continues to demand a certificate, which Sakeliga argues is an unnecessary burden on businesses, particularly small operations.

This reversal follows significant backlash from the sector, especially from small businesses and sole proprietorships. While groups like the Real Estate Business Owners of South Africa (Rebosa) sought consultation with the PPRA, Sakeliga pursued legal action to protect practitioners’ business freedoms. Though the most urgent issue has been addressed, further clarity on the policy shifts is needed to prevent ongoing confusion.