New B-BBEE Requirements for Real Estate Agents in 2025

The Property Practitioners Regulatory Authority (PPRA) has stated that it will not issue a Fidelity Fund Certificate (FFC) to any Real estate agent without a complaint B-BBEE certificate for the upcoming renewal period for FFCs in 2025.?

Section 48 of the Property Practitioners Act of 2022 states that no FFC may be issued without a valid B-BBEE certificate. Previously, the requirement was only for a SANAS-accredited B-BBEE certificate with no minimum score. The PPRA has made it clear that they will only issue an FFC to an agent who has achieved at least a level 8 scorecard, which is the lowest level achievable.

Achieving a level 8 or compliant B-BBEE certificate does not require ownership but would require compliance with the following elements thus, achieving a complainant certificate would still depend on the following elements:?

1. For skills development, the target is calculated at 3% of the total annual payroll for companies with an annual turnover of between R10M and R49M (QSE Companies) and 6% for companies with a turnover greater than R50M (Generic Companies)?
2. For preferential procurement, 60% of the annual total cost of sales must be procured from B-BBEE-compliant companies for QSE companies and 80% for generic companies.?
3. Social, economic development solutions to the value of 1% of Net Profit After Tax (NPAT)
4. Supplier development support is needed at the value of 1% of NPAT.??
5. Enterprise development to the value of 1% of NPAT.??

Achieving a compliant B-BEE certificate requires strategic planning, and real estate agencies looking to become B-BBE compliant can face the following compliance challenges:?

• Financial Challenges?

Becoming B-BBEE compliant requires a substantial investment in skills development, Enterprise Development, Supplier Development, and social economic development. This can be quite the financial burden on smaller property firms with limited resources, which could have a detrimental impact on the sustainability and competitiveness of these smaller real estate practitioners.?

• Administrative Challenges?

Completing the Property Practitioners Act and becoming a B-BBEE complainant can place a strain on a property practitioner’s resources. Compiling a portfolio of evidence for a B-BBEE rating can be administratively intensive, especially for sole proprietors.

• Capacity constraints?

Complying with the management control element of the scorecard requires employees within the entity. Most property practitioners are small enterprises and cannot diversify their employment profile. Implementing skills development initiatives requires specialised expertise and resources, and there is a need for internal capacity and infrastructure to effectively execute these programs internally, hindering their ability to become B-BBEE compliant.

In addressing the B-BBEE compliance challenges, property practitioners must embrace innovation, collaboration and capacity-building initiatives to drive meaning and complete transformation within the sector. Proactive measures and strategic partnerships enable practitioners to navigate the regulatory landscape more effectively.

Contact Invictus for tailored B-BBEE compliance strategies. For more information, contact us at 086 173 7263 or email us at [email protected]