A major court ruling could change who is required to register as a property practitioner in South Africa, offering relief to private property owners and certain businesses affected by the country’s property regulations.
The judgment, delivered by the Gauteng Division of the High Court in Pretoria on 8 September 2026, followed a legal challenge brought by business lobby group Sakeliga against provisions of the Property Practitioners Act. Although the ruling still requires Constitutional Court confirmation, interim relief has already been granted in key areas.
Private Property Owners Could Benefit
The court found that parts of the legal definition of a property practitioner were too broad. Under the previous wording, people selling their own sectional-title properties, individuals selling property outside their ordinary business activities, and platforms that merely publish property advertisements could potentially fall under the same regulatory framework as professional estate agents.
The judgment excludes these categories from the relevant part of the definition, reducing the risk of private sellers being subjected to professional registration and compliance requirements simply because they are selling their own property. However, developers and businesses that commercially market property remain subject to the law where applicable.
BEE Certificate Requirement Also Challenged
The court also declared unconstitutional a provision requiring property practitioners to possess a valid Black Economic Empowerment (BEE) certificate to obtain a Fidelity Fund Certificate, which is required to practise lawfully.
The court found that the legislation did not clearly explain what constituted a valid BEE certificate or precisely what standard applicants had to meet. Interim relief prevents the Property Practitioners Regulatory Authority from refusing to issue a Fidelity Fund Certificate solely because an applicant lacks that certificate, pending Constitutional Court confirmation.
What Happens Next?
The ruling could make it easier for private individuals to sell their properties while providing greater clarity for businesses operating in the property market. However, it does not remove all licensing obligations for professional estate agents or eliminate BEE requirements across the wider economy.
The Constitutional Court must still consider the declarations of invalidity, and Parliament will have an opportunity to amend the legislation if the ruling is confirmed.
For South Africa’s property sector, the case highlights the importance of balancing consumer protection and transformation with clear regulations that allow people and businesses to participate fairly in the property market.
Main image: News24
