The Property Practitioners Act 2019 comes into effect on the 1st of February 2022. Chapter 2 of this Act looks specifically at transformation in the Property Sector.
It is clear from the Act that there is a lot of focus on transformation in die Property Sector. The transformation that needs to be implemented by the Property Practitioners Regulatory Authority correlates with the B-BBEE Goals as set out in the B-BBEE Property Sector Code.
This transformation will be done through the Property Sector Transformation Fund.
Every property practitioner who is a natural person must obtain a Fidelity Fund Certificate on a yearly basis. If we look at the Application that must be submitted to the Property Practitioners Regulatory Authority for the issue of a Fidelity Fund Certificate, one of the applicant’s declarations is whether they are in possession of a valid B-BBEE Certificate.
At this stage, it is uncertain whether the absence of a B-BEE Certificate will lead to the rejection of the Fidelity Fund Certificate application. We will have more clarity regarding this aspect only after the Act come into effect.
As our clients know, obtaining a B-BBEE Certificate takes a while and is linked to the financial year-end of the client. Taking all of this into consideration, and the focus on transformation in the Act, it will be better for practitioners to be in possession of a valid B-BBEE certificate.
Contact your BEE Legal advisor to assist your business with all BEE-related queries. Alternatively, leave your contact details on our website.
About the Author:
Geralene van Wyk started her career at SEESA in 2011 and is currently a BEE National Training Senior Legal Advisor at SEESA’s Pretoria Head Office. She obtained her BA (Psychology) and LLB degrees from the North-West University. After her studies, she completed her articles in Pretoria and was admitted as a practicing attorney in 2006 and a conveyancer in 2007.
References:
- Property Practitioners Act, 2019 (Act No. 22 of 2019)