- Two residential community organisations took their case to court, seeking clarity on whether estates can charge estate agents fees for selling properties in their developments.
- The court dismissed the application, finding the organisations had not given enough grounds for the broad ruling they wanted.
- Human Settlements Minister Thembi Simelane welcomed the judgment and said the property regulator would keep working to address potentially unfair practices.
The High Court in Johannesburg has turned down an application by the Residential Communities Council and the Association of Residential Communities, who wanted a ruling on whether residential estates can charge estate agents fees to sell properties in their developments.
The judgment was handed down on 20 October 2026. The organisations brought their case against Human Settlements Minister Thembi Simelane, the Property Practitioners Regulatory Authority (PPRA) and the National Property Practitioners Council.
They wanted the ruling to apply widely to residential estates, homeowners’ associations, bodies corporate and other governing bodies across South Africa. But the court found the applicants had not shown enough reason for the order they were after.
However, the dismissal does not mean that all accreditation fees are automatically lawful or unlawful. Whether a fee is legal depends on the specific circumstances, including the type of organisation imposing it, its functions and the nature of the fee.
The court also noted that these fees might put estate agents at a disadvantage, limit choices for consumers and make it more difficult for some practitioners to get a foothold in the property market.
PPRA raises concerns about fees
The PPRA opposed the application, arguing that some accreditation fees could be considered undesirable business practices under Regulation 35 of the Property Practitioners Regulations of 2022, together with sections 62 and 63 of the Property Practitioners Act 22 of 2019.
The authority is in charge of regulating property practitioners, making sure they follow the law and protecting consumers from unfair practices in the property market. The debate centres on whether residential estates can make estate agents pay fees before they are allowed to market and sell properties within those developments.
Simelane welcomes judgment
Simelane said the judgment allows the department and the PPRA to keep working towards a fair, open and inclusive property sector. “The authority will continue to exercise its regulatory responsibilities in line with the Property Practitioners Act and applicable regulations, always considering the facts and merits of each case and pushing forward with efforts to transform the sector,” she said.
The minister added that property market practices must be measured against the goals of the law, including fair access, consumer protection and transformation. The PPRA will carry on with its regulatory work, while the legality of each accreditation fee will depend on the facts of each case.
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