Run an estate agency or rental agency properly, and get paid your commission.

What you need to operate legally

• A registered firm and a Fidelity Fund Certificate for every person. The firm registers with the Property Practitioners Regulatory Authority, then the principal, then each agent, candidate or full status. The Fidelity Fund Certificate guide has the document list, the three levels and the 2026 fees.
• A section 54 trust account, or an exemption letter. Deposits and rent go into a trust account at a registered bank with an auditor appointed on day one, or the firm holds an exemption because it never touches trust money. One or the other; there is no third option.
• Registration with the Financial Intelligence Centre. Estate agents are accountable institutions under the Financial Intelligence Centre Act, which means a risk management and compliance programme, client identification and verification on every deal, and reporting of cash over the threshold and of suspicious transactions. The PPRA asks for proof of FIC registration with the firm application.
• A BEE affidavit and a tax clearance for the firm. Both are conditions for the certificate under section 50 and both are checked on every renewal. A firm under R10 million turnover uses the sworn affidavit.
• The mandatory disclosure form on every mandate. Section 67 forbids taking a mandate until the seller or landlord has signed the defects disclosure, and it must be attached to every sale or lease agreement.
• Qualified people. Full status agents need the NQF 4 real estate qualification and the PDE 4 exam; principals need NQF 5 and PDE 5. Candidates work under supervision for 12 months with a logbook.

Company, close corporation or sole proprietor?

Any of the three can register with the PPRA. Most agencies are private companies, because the franchise agreement, the bank and the auditor prefer it, and because a company separates the principal’s own house from the firm’s liabilities. A sole proprietor still needs the firm registration, the trust account or exemption, the audit and a tax clearance in their own name, so the saving is smaller than it looks. Whatever the form, every director, member or partner is a principal and needs a principal’s certificate, which means NQF 5 and PDE 5 for each of them, not just one.

The company registration service sets the company up with the share structure and the beneficial ownership filing the PPRA and the bank will both ask about.

The money

• Commission and VAT. Commission is taxable income of the firm. Once the firm’s taxable supplies pass R1 million in any twelve months, VAT registration is compulsory and commission is charged with VAT on top; an agency near the threshold should watch it monthly. The VAT calculator shows the effect on a commission invoice.
• Agents are usually independent contractors, but not always. Commission-only agents who set their own hours and pay their own costs are typically contractors and invoice the firm. An agent paid a salary or retainer, given a desk and working set hours is an employee, with PAYE, UIF and COIDA duties on the firm regardless of what the contract calls them. SARS applies its own tests, not the label.
• Trust money is not yours. Interest on the trust account belongs to whoever the written agreement names, and to the Fidelity Fund if nobody is named. Using trust money for the firm’s expenses is theft, and it is the most common reason principals lose their certificates.
• The audit costs money every year. Budget for the auditor from the first month; the report is due within six months of year end whether or not the firm made a profit.

Employing agents and admin staff

• A written contract that says plainly whether the person is an employee or an independent contractor, and matches how they actually work.
• The candidate’s employment letter for the PPRA, signed by principal and candidate, with the firm’s F number and the principal’s PPRA number.
• Supervision. Section 64 makes the principal responsible for candidates. Their mandates, their advertising and their conduct are the principal’s problem.
• UIF, COIDA and PAYE for every employee, from the receptionist to the salaried agent. The Employer Admin pack sets them up together.

Frequently asked questions