The Pretoria High Court declared section 50(a)(x) of the Property Practitioners Act unconstitutional, ruling that the PPRA cannot require a B-BBEE certificate to issue a Fidelity Fund Certificate (FFC). While business groups dispute the implementation timeline pending Constitutional Court confirmation, the court also narrowed the definition of property practitioners, excluding simple ad hosters.
The Core Ruling
- B-BBEE Requirement Voided: The court struck down the statutory provision making a B-BBEE certificate a mandatory prerequisite for trade licensing.
- Interim Relief & Disagreement: The Moonstone Information Refinery notes interim relief prevents the PPRA from withholding certificates based on this section, though the PPRA argues changes only take effect once the Constitutional Court confirms the judgment.
Impact on the Industry
- Property Portals: Websites that only host or carry ads from third parties are explicitly excluded from being classified as property practitioners.
- Definition Reductions: Certain private owners and specific non-standard transactions fall outside regulatory oversight due to the court partially narrowing the statutory definition.
- Ongoing Transformation: Industry bodies emphasize that setting aside licensing hurdles does not dissolve the broader commitment to sector transformation.
Read the article in Property Professional
https://propertyprofessional.co.za/2026/09/14/high-court-declares-b-bbee-certificate-requirement-for-property-practitioners-unconstitutional/