The Minister of Human Settlements, Thembi Simelane, has noted and welcomed the judgment delivered by the Gauteng Local Division of the High Court of South Africa, Johannesburg, in the matter between the Residential Communities Council (NPC) and the Association of Residential Communities CC, and the Minister of Human Settlements, the Property Practitioner Regulatory Authority (PPRA) and the National Property Practitioners Council.
In its judgment delivered yesterday, 20 October 2026, the Court dismissed the applicants’ application for a declaratory order. The Court found that the applicants had not established sufficient grounds for the broad relief sought in respect of residential estates, homeowners’ associations, body corporates and governing bodies nationally.

Importantly, the judgment recognises that the lawfulness of the contested conduct depends on the specific circumstances of each case, including the nature of the organisation concerned, the functions it performs, the nature of the fees charged and the circumstances under which those fees are imposed. The Court further acknowledged that such practices may, depending on the facts, disadvantage property practitioners, restrict consumer choice and create barriers to entry into the property sector.
“The dismissal of a declaratory order enables the Department through its entity, the PPRA to continue advancing for a fair, transparent, and inclusive property sector in which property practitioners can operate within the law and consumers are afforded appropriate protection. The Authority will continue to exercise its regulatory responsibilities in accordance with the Property Practitioners Act and applicable regulations, with due regard to the facts and merits of individual matters, and drive initiatives aimed at transforming the sector,” said Minister Simelane.

The Authority’s position was informed by its statutory mandate to regulate the conduct of property practitioners, promote compliance with the legislative framework and protect consumers against undesirable practices in the property market.

In its opposition, the PPRA maintained that the imposition of such fees may, depending on the circumstances, constitute an undesirable business practice under Regulation 35 of the Property Practitioners Regulations, 2022, read with sections 62 and 63 of the Property Practitioners Act 22 of 2019.

This historic judgment represents a significant development in the ongoing debate concerning fees imposed on property practitioners by residential estates as a condition for marketing and selling properties within their developments.
The judgment also reinforces the importance of examining practices in the property market against the objectives of the legislative framework, including fair access to the market, consumer protection and the transformation of the property sector.


For media Enquiries, contact: Tsekiso Machike, Spokesperson to the Minister on 077 410 5050

Issued by the Ministry of Human Settlements, Govan Mbeki House 240, Justice Mahomed Street, Sunnyside, Pretoria