This year, the Property Practitioners Regulatory Authority (PPRA) issued a timely reminder to consumers: only work with property practitioners who are registered and hold a valid fidelity fund certificate. It's a message that matters. While aimed at protecting buyers, sellers, renters, and landlords, it also highlights a serious concern for property practitioners who stick to the rules. For those who strive to meet ethical standards and invest in professional development, the presence of unregistered real estate agents has created an uneven playing field over the years.
There’s no shortage of reports surfacing about unregistered real estate agents actively trying to get their foot in the door. With the allure of quick commissions, many are operating without the necessary legal backing, putting the industry’s credibility at risk, says Jay-Jay Eras, Principal Property Practitioner at Century 21 Sea Point.
“Unregistered real estate agents aren’t bound by the same laws and regulations as registered agents, which can lead to non-compliance and legal issues for both clients and businesses.
“These agents lack the required training and oversight, putting consumers at risk of fraud, misinformation, and financial losses. Without the necessary qualifications, they may not have the skills to handle transactions properly, which can lead to significant issues.
“The presence of unregistered agents also damages the reputation of the industry, causing distrust among clients who question the professionalism of the agents they deal with. This, in turn, makes it harder for registered agents to build trust and secure business, as clients become more wary of the entire sector.
“Additionally, unregistered agents often offer lower fees or commissions, undermining the income of registered professionals who follow the law. Their lack of proper due diligence can also lead to misrepresentation of property details, which creates risks in property transactions,” he says.
According to Eras, when unregistered real estate agents bypass regulations, they create opportunities for malpractice, which negatively impacts the entire market. “All of this erodes trust in the real estate market, making it more difficult for buyers and sellers to feel confident in their dealings,” he shares. “Ultimately, the lack of regulation hinders the growth and professionalism of South Africa’s real estate sector, preventing it from aligning with international standards.”
Real estate agents speak out
Operating within legal frameworks is a must for any real estate agent, but it’s becoming increasingly frustrating when others sidestep those same rules. In February, Prop Data polled the real estate community and found the majority were concerned by the rise of these unregistered agents in the market:
65.8% said they were “extremely concerned”.
23.3% said they were “very concerned”.
5.8% said they were “moderately concerned”.
4.4% said they were “not at all concerned”.
0.8% said they were “slightly concerned”.
“Unsurprisingly, most property practitioners are anxious about the situation,” says Eras. “We see time and time again how unregistered agents undermine professional standards, create unfair competition, and put clients at risk of fraud or financial loss.”
In 2025, a bogus real estate agent in the Eastern Cape was sentenced to 10 years in jail after defrauding a homebuyer of R650,000. She impersonated a law firm, requested FICA documents, and provided a fake Nedbank account for payment. After transferring the funds, the victim discovered the law firm had no record of the transaction and the bank account was not theirs.
In another incident, a KwaZulu-Natal real estate agent, under the pretence of being a licensed professional, listed units, booked viewings, and collected deposits from potential tenants. Once payments were made, she disappeared, leaving victims high and dry. These cases highlight the financial and emotional harm inflicted by unregistered individuals and underscore why legitimate agents are so deeply worried about the unchecked presence of fraudulent practitioners in the market.
Call for tougher regulation
More property practitioners are demanding better regulation and compliance in the industry. “It should be a mandatory requirement for all stakeholders, including attorneys, bond originators, and banks, to verify and confirm the validity of the real estate agency’s or agent’s FFC before any transfer documents are signed,” says Eras. “Should any stakeholder become aware that the agency or agent is unregistered, they must report this to the PPRA immediately. The unregistered agency or agent should be subjected to a significant fine or jail time. Stakeholders who fail to comply with these requirements should also face substantial fines, the potential loss of their FFC, or jail time.”
Eras also believes the PPRA should take more action as the regulating authority. “They must act swiftly upon receiving such information to fulfil their responsibility of protecting consumers from unscrupulous agencies and agents,” he says. “The PPRA must also be held accountable for any failure to take action. Should a consumer, whether a seller or buyer, incur financial losses due to dealings with unregistered agencies or agents, those unregistered entities should be held accountable for these costs. Legal action may be pursued in a criminal case, civil case, or both, as applicable.”
Fighting back at an agency level
While regulation starts at the top, real change also happens on the ground. With unregistered agents damaging client trust and undercutting the industry, property practitioners need to take proactive steps — starting in their own offices and extending to how they engage with the market. Eras shares ways real estate agencies and brokerages can make a difference:
Real change may take time, but every action — from reporting bad actors to educating clients — counts. If enough agencies take a stand, the message becomes clear: there’s no place for unregistered agents in a professional industry built on trust.