PPRA warns agents over valuations

The Property Practitioners Regulatory Authority (PPRA) has cautioned property practitioners against misrepresenting the likely sale or rental price of a property to obtain a mandate.

In a communique issued this month, the PPRA reminded members that this kind of material misrepresentation breaches clause 34.3.1.8 of its Code of Conduct for members.

In addition, under clause 34.3.4.2, property practitioners are barred from making or assisting anyone else to prepare or make any false statement.

The body also points to a provision in the Code of Conduct that precludes property practitioners from claiming to be an expert, or to have specialised knowledge about any service (including property valuation), unless they are an expert or do have special knowledge (clause 34.3.4.3).

What are the implications of this for your business?

While property practitioners may have excellent knowledge of local residential sale and rental prices, the PPRA discourages them from providing professional valuations or claiming to be professional valuers unless they are registered with and authorised by the South African Council for the Property Valuers Profession (SACPVP).

Getting registered is therefore a clear next step for any property practitioner wishing to provide these services.

While the upsides to legitimately providing valuations or acting as a valuer are clear, failure to comply with the Code of Conduct is a sanctionable offence, and may result in a fine or the withdrawal of the offending agency’s fidelity fund certificate.

To read the full PPRA communique, visit the PPRA website.