Johannesburg:Human Settlements Minister Thembi Simelane has welcomed a High Court decision dismissing an application for a declaratory order concerning fees imposed on property practitioners by residential estates and related bodies.

According to South African Government News Agency, the Gauteng Division of the High Court in Johannesburg dismissed the application filed by the Residential Communities Council (NPC) and the Association of Residential Communities CC. The applicants had sought relief for residential estates, homeowners' associations, body corporates, and governing bodies nationwide.

The court concluded that the applicants did not establish sufficient grounds for the relief they sought. It emphasized that the legality of the contested conduct depends on the specific circumstances, including the nature of the organization, the functions it performs, the nature of the fees charged, and the conditions under which those fees are imposed.

The judgment further noted that such practices could potentially disadvantage property practitioners, limit consumer choice, and create entry barriers in the property sector. With this ruling, the department, through the Property Practitioners Regulatory Authority (PPRA), can continue to advocate for a fair, transparent, and inclusive property sector, ensuring that property practitioners operate within the law while protecting consumers.

Simelane stated that the PPRA will maintain its regulatory duties According to Property Practitioners Act and relevant regulations, considering the facts and merits of individual cases. The PPRA had opposed the application, arguing that fees imposed on property practitioners might constitute an undesirable business practice under certain regulations.

The Minister highlighted that this judgment marks a significant development in the debate over fees imposed on property practitioners by residential estates. It reinforces the importance of aligning practices in the property market with legislative objectives like fair market access, consumer protection, and sector transformation.