With all the media focus lately on the new Property Practitioners Act and new regulations and requirements regarding Fidelity Fund certificates, it’s easy to miss the impact this Act intends to make on much-needed transformation of the property sector. Here we highlight a few of the key measures that will impact on transformation in the property industry.
The Act reconfirms that the Property Sector BEE Transformation Charter Code applies to all property practitioners that fall within the scope of the Act and also encourages organs of state to procure services from property practitioners that comply with transformation and equity legislation.
The Act also states that the Property Practitioners Regulatory Authority must implement measures that promote a more inclusive and integrated property sector and establishes a Property Sector Transformation Fund for the receipt of grants to among others be used to promote transformation and empowerment programmes within the sector.
Also of relevance, is the Property Sector Research Centre that has a mandate to look at identifying barriers to entry to the property sector by historically disadvantaged individuals as well as the demographic distribution of skills in the sector.
And lastly, an item that will undoubtedly have an impact on transformation in the sector is the linking of the requirement that property practitioners must have a valid BEE certificate in order to renew their Fidelity Fund certificates. This will certainly place pressure on the industry to address transformation more aggressively through the BEE verification process or risk not obtaining a Fidelity Fund certificate so critical to doing business.
Although just the highlights, property practitioners and role players should be convinced that addressing and prioritising transformation will be highly relevant not only in the sector but also to individual practices and businesses that operate within the industry, justifying engaging with specialists that can provide guidance on how to align your practice and business with this transformation drive.
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