Caught in the act: real estate agents expose unregistered real estate practices
The Property Practitioners Regulatory Authority (PPRA) has sounded the alarm on a growing issue in the real estate industry: unregistered agents operating illegally. And it’s not just a minor concern, it’s becoming more and more common.
A recent Prop Data poll found that 65.8% of agents are “extremely worried” about these rogue operators. Even more alarming? 53.6% have actually encountered them in action, whether it’s unlicensed individuals cutting deals, misleading clients, or completely sidestepping legal requirements.
Clearly, this is more than just an annoyance, it’s a serious threat to the industry’s integrity. But agents aren’t keeping quiet about it. Many are sharing their stories, exposing these illegal practices, and calling for real action.
First-hand accounts
1. Say what?
“I have met two of them...they deal with rentals at most. One of them said she works for a certain company and that her boss said they should sell 3 properties first before they can register with the PPRA.”
— Lerato Masemula, Only Realty
2. To rent or not to rent
“I had to sell a property that was rented out by an unregistered agent. The tenant never paid rent. The water and electricity were never legally connected and, in the end, it cost the seller a lot more than anticipated because of the unethical behaviour of the rental agent.”
— Ronel Vorster, Kellaprince Properties
3. Don’t bank on this one
“He sold my daughter a bank-assisted sale property with a condition that is not acceptable by the bank.”
— Bethuel Mtolo, Jawitz Roodepoort
4. Maybe don’t follow this leader
“I have been a registered agent and principal for almost 25 years. After Covid, I was forced, because of outstanding debt, to sell my Rawson franchise. The franchise was sold twice but I stayed on as an agent. However, the new franchisees had an "it doesn't really matter" when it came to agents having FFC's. There were at least 4 or 5 agents who did not have valid FFC's. That was when I decided to leave.”
— Calvyn Petrus Greyling, Redz Properties
5. The trust is gone
“In most cases, clients cried about huge sums of money that were distorted from them without getting any service. This really ruined the reputation of the experienced agents and the Real Estate Industry as a whole.”
— Mapheello Roberta Setai, O-YES Properties
6. A dream that turned into a nightmare
“We found what we believed to be our dream home and the agent assured us our offer was the best offer and we would get the home. When pressed for the accepted offer to purchase, the agent went dead. I called the owner and established that the agent that we had viewed the property with did not have his consent to show the property, nor was he a registered agent. In addition to this, we established the owner had a sole mandate with Homenet and their agent had submitted a successful offer the night before.
We had no recourse against this bogus agent and we lost the home we so dearly wanted. Worse than this, the seller heard that we had actually made a significantly higher offer than the one he had accepted through his appointed agent. He had consequently suffered financial loss due to the actions of the unregistered agent."
— Aaron Grant Ruiter, Harcourts Rhino
7. Sneaky, sneaky
“I showed a property to a client and the unregistered agent showed him afterwards and also told him that he should not tell me that he is signing an offer. Obviously, the client wanted to sign with him because he is barely asking for a commission. The buyer felt guilty and phoned me and told me about this. I found out the agent is not registered and is working through an attorney standing in as a principal. We did report it but nothing came of it.”
— Michelle Needham, Seeff Polokwane
8. A close call
“An unregistered agent posted an advert for a rental listing which they copied from another source. Potential tenants/acquaintances who were not from our area phoned me to enquire about the property, area, price and other details as they wouldn't be able to travel to our area for a viewing within the following week or more and the "agent" was putting a lot of pressure on them stating that there are other takers who would be viewing the next day and then able to sign a lease and pay deposits and other fees immediately. It turns out the photos were of a property in a different complex on the opposite side of town which I was familiar with, and the "agent" wasn't registered with the PPRA. Fortunately, in this case, the potential tenants did the necessary enquiries before paying anything.”
— Natasha Prinsloo, Chas Everitt Nelspruit/Lowveld
9. Talk about a fly-by-night
“The unregistered agent "rented" holiday accommodation to matric students for the Plett Rage. The accommodation was fictitious and he disappeared with their money.”
— Robert Paul Auersperg, Meridian Realty
10. The audacity
“One went so far as to use my FFC number to get a listing.”
— Catherine Ellington, EXP South Africa
11. All in and nothing out
“An unregistered agent "sold" a property to a cash buyer and was in cahoots with an attorney who ended up stealing the purchaser's money and left them devastated.”
— Margot van Wyk, EXP South Africa
12. At a loss for more than words
“My friend was approached by an unregistered agent with a buyer who wanted to buy my friend's father's apartment. My friend signed the OTP and the apartment was sold for a lesser amount as was agreed upon. The OTP wasn't signed with wet ink, but the transfer was registered quickly. My friend lost R150 000 on this transaction and could do nothing about it.”
— Elrene Coetzee, Harcourts Platinum
Play your part
With unregistered real estate agents becoming more of an issue, it’s clear that the industry needs to come together to tackle this problem. Whether it’s stricter rules, tougher penalties, or just a unified effort to protect the reputation of real estate, working together is the key to making real change happen.
For agents, there are a few straightforward things you can do, such as making sure your credentials are always valid and taking the time to educate clients on how to spot unlicensed individuals. By staying alert and proactive, you can help keep the market trustworthy and ensure everyone is working with properly registered professionals. It’s time to band together and make sure the industry stays safe, legal, and professional.