Protect your money … every property agent must have a valid Fidelity Fund Certificate

Property transactions have significant legal and financial implications, and you should therefore be serious about protecting your interests, says Samuel Seeff, chairperson of the Seeff Property Group. It starts with ensuring that you work with a registered property agent who holds a valid Fidelity Fund Certificate, whether you are selling, buying, or renting property.

The requirement is something that all property professionals across the property landscape must have. The Property Practitioners Act 22 of 2019, and the Property Practitioners Regulatory Authority (PPRA) regulates the conduct of all professionals in the industry, and every operator must be registered with the PPRA and must hold a valid Fidelity Fund Certificate (FFC) as a legal requirement.

FFCs are issued by the Property Practitioners Regulatory Authority (PPRA), and are valid for three years. Seeff says that clients dealing with property agents and practitioners must therefore check that the agent is in possession of a valid FFC. This is a vital safeguard for clients and their properties and funds.

To verify that the agent is registered, clients can visit the PPRA website (https://theppra.org.za/). Clients must ask to see the FFC of the agent to verify the name and validity of the dates. This will confirm that the agent or practitioner is legally registered and compliant with industry regulations. Every agent must have their own FFC, and practitioners cannot use someone else’s certificate or that of the agency that they work for.

A Fidelity Fund Certificate essentially serves as an operating license as well as providing crucial protection for clients, says Seeff. Agents must therefore be registered with the PPRA, and part of this registration would include verification that the agent is compliant and holds the relevant qualifications.

The PPRA (Property Practitioners Regulatory Authority) also regulates the conduct of agents through the enforcement of the Property Practitioners Act and a Code of Conduct. This ensures that agents maintain ethical standards, including transparency and disclosure, and proper management of trust accounts. It also investigates complaints, conducts inspections, and can impose disciplinary sanctions in the pursuit of maintaining integrity and protecting consumers within the sector.

The Property Practitioners Fidelity Fund provides a financial safeguard which protects clients against the misappropriation of money deposited by them with property agents or attorneys for safekeeping. Affected clients can lodge a claim with the PPRA.

Seeff says by ensuring you work with a property agent who is registered with the PPRA and holds a valid Fidelity Fund Certificate, clients know they are dealing with a competent and credible property agent. A reputable agent will not only ensure compliance with industry standards and the code of conduct and regulations, but will provide superior service to maintain their reputation.

Working with a property practitioner who possesses a valid Fidelity Fund Certificate is not only a matter of compliance, but an essential safeguard for your financial security and peace of mind. By prioritising this simple verification, clients can confidently navigate property transactions, knowing they are protected by the highest industry standards, concludes Seeff.

Issued by Gina Meintjes