Common compliance mistakes we see in the industry include incomplete mandates, missing signatures, outdated Fidelity Fund Certificates (FFCs), and failing to obtain the necessary disclosure forms or complete client verification.
Quay 1 International Realty explains that in South Africa, compliance with the Property Practitioners Act and FIC Act is essential to protecting both clients and the integrity of a transaction.
These mistakes can be avoided through consistent checklists, thorough document verification and staying up to date with regulatory requirements. Compliance should form part of an agent’s everyday processes, rather than being treated as an administrative task at the end of a transaction.
Antonie Goosen, Principal and Founder of Meridian Realty says compliance is sometimes treated as an administrative burden in the property industry, but it is actually one of the most important ways agents protect their clients, their reputations and their businesses.
“One common mistake is failing to ensure that the agent and agency have valid Fidelity Fund Certificates and meet the requirements of the Property Practitioners Regulatory Authority.
“Another is inadequate documentation, particularly when it comes to mandates, mandatory property disclosure forms and offers to purchase. Verbal understandings and incomplete paperwork can create serious disputes later.
“Agents also sometimes underestimate their obligations under the Financial Intelligence Centre Act. Proper client identification, verification, risk assessment and recordkeeping are essential. These requirements are not optional simply because a buyer or seller is well known to the agent.
“Misleading advertising is another danger. Exaggerating a property's features, overlooking known defects or making claims that cannot be substantiated may seem like shortcuts to securing a sale, but they can have serious consequences.
“We believe compliance should be built into the transaction process rather than treated as something to check at the end. My advice to agents is straightforward: keep your registration current, use properly drafted documentation, verify information before making representations and never pressure a client to sign something they do not understand. Professionalism is not just about closing deals. It is about ensuring that every transaction can stand up to scrutiny long after the sale has been concluded," he says.
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