Advertisement
The management of residential estates is not the straightforward task that many may believe it to be. Various laws and regulations make the job harder as estate managers must ensure estates are compliant to avoid any legal action and fines.
Over the years, new laws have been introduced that influence how estates are run and managed. These include the POPI regulation, the Immigration Act, and the Property Practitioners Act, to name a few.
Here we run a refresher on what they entail and their impact on estates.
The purpose of POPI
POPI, which stands for Protection of Personal Information Act, was introduced on 1 July 2021 to regulate the processing of personal information and to protect the privacy of individuals, including residents and visitors to Residential estates in South Africa and affects all organizations (including residential estates) that collect, process, and store personal information.
The POPI regulation requires residential estates to obtain consent from residents before collecting personal information such as their names, contact details, and identification documents. The estates must also ensure that this information is stored securely and not shared with third parties without the residents’ consent. Failure to comply with the POPI regulation can result in fines and legal action.
Stephen Thomas and David Burger, Estate Specialists for Lew Geffen Sotheby’s International Realty highlight the real-world effects of POPI compliance.
‘There are big differences between simple gated estates and lifestyle estates where facilities like golf clubhouses, restaurants, and bars exist. Some estates have simple access, whilst others must also cater for access by the wider public if they allow visitors/guests to use the golf course, restaurants, etc.
Advertisement
‘The POPI act is partially responsible for issues associated with delays at the gate as any information on the hand-held devices must be erased upon a person’s exit because their car/personal licence data legally cannot be retained.
Also, the trustees and directors must be able to explain why information is collected; where it is stored; for how long it is stored, and when it is destroyed.’
The Impact of the Immigration Act
The Immigration Act governs the entry and exit of foreign nationals in South Africa. Residential estates are required to comply with the Immigration Act by ensuring that their employees have valid visas and work permits. Questions have been raised around residents who have foreign nationals as employees, who for the purpose of accessing the resident’s property, have their biometrics and other personal detail included to the estates access control system.
What some fail to realise though, is that a person working for a resident of the estate, on estate grounds, is also subject to the Immigration Act. Gavin Mulvenna of Kusile Consulting says most homeowners will be unaware of their legal obligations as employers, which could result in legal action, fines, and deportation for failure to comply with the Act.
Estate managers should regularly brief residents about the importance of complying with this act as it could impact the other residents of the estate too.
Southeby’s team points out: ‘The Immigration Act impacts estates in that employing a foreigner without a valid work permit is an offence that exposes the employer to fines and possible imprisonment and this then begs the question of who will be fined – and who will need to pay the fine.’
The Property Practitioners Act
The Property Practitioners Act (PPA), which came into effect on the 1st of February 2022, replaced the Estate Agency Affairs Act 1976 (EAA Act) with the intention of protecting the interests of consumers in the property industry.
One of the noticeable differences between the two acts are that the PPA is regulated by the Board of Authority, unlike the EAA which is regulated by the Estate Agency Affairs Board of South Africa (EAAB).
The new act aims to regulate all property practitioners, including estate agents, property managers, and home inspectors, to ensure that they provide a professional and ethical service to their clients.
The act also establishes the Property Practitioners Regulatory Authority (PPRA) as the regulatory body responsible for enforcing the act’s provisions.
Under the act, estate agents must register with the PPRA and comply with a range of requirements, including obtaining professional indemnity insurance, keeping proper records, and completing ongoing training. The act also introduces a range of consumer protection measures, such as the requirement for estate agents to provide written disclosure of all material facts relating to a property and to act in the best interests of their clients.
Hire the experts
These acts are just a few examples of the laws and regulations that affect the management of residential estates. One of the biggest challenges that estates face is keeping up with the changes to the laws and regulations. Legal experts recommend that estates invest in proper systems and processes to manage their compliance which could include appointing a compliance officer, investing in staff training, and implementing solutions to manage data and information securely.
By investing in proper systems and processes, working with legal advisors, and conducting regular audits, estates can ensure that they are compliant with all relevant regulations and they’ll be able to manage any potential areas of risk so that they operate in a manner that benefits both the residents and the estate itself.
