GAUTENG. – The Johannesburg High Court has dismissed an application by two organisations representing residential communities in a dispute over fees that estates can require from property practitioners before they market and sell properties within those developments. The ruling was delivered on 20 October 2026.
The applicants, the Residential Communities Council and the Association of Residential Communities, sought a declaratory order on the lawfulness of these fees. The court found that there were insufficient grounds for the broad order they had requested with respect to residential estates, homeowner associations, sectional title bodies and other management bodies nationwide.
Thembi Simelane, Minister of Human Settlements, welcomed the ruling. She said the decision enables her department and the Property Practitioners Regulatory Authority (PPRA) to continue their work to promote a fair, transparent and inclusive property sector. The PPRA had argued that the levying of such fees, depending on the circumstances, could constitute an undesirable business practice in terms of regulation 35 of the Property Practitioners Regulations of 2022, read together with sections 62 and 63 of the Property Practitioners Act 22 of 2019. The court also acknowledged that the practices in certain circumstances could disadvantage property practitioners, limit consumers' choice and impede access to the property market.
The ruling does not mean that all accreditation fees levied by residential estates are now automatically declared lawful or unlawful. According to the minister's statement, each case must be assessed based on the organisation involved, the functions it performs, the nature of the fees and the circumstances in which they are levied.
A practical example in South Africa could look like this:
Say a house in a residential estate in Pretoria is sold for R2.5 million. The owner instructs a property agent to market the house, but the estate's management body says the agent must first pay an annual accreditation fee before they can work there.
Where does the problem arise?
If the fee is, for example, R10 000 per year, the agent must pay it before they can market the estate's properties. A small agency or a new agent wanting to sell just one house there might decide it does not make financial sense. The homeowner could consequently have fewer agents to choose from.
What does the other side say?
The estate could argue that the fee covers actual services, such as training on the estate's rules, administration, advertisements on the estate's website or extra security when buyers visit the property. The Residential Communities Council has previously argued that administrative fees are linked to the services provided.
What does the court ruling mean then?
The court did not decide that every such fee is unlawful. It dismissed the application for a broad declaratory order. The lawfulness of a fee must, according to the minister's statement, be assessed based on the specific circumstances.
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This article is an automatic English translation of a Nuusflits article originally published in Afrikaans. Read the Afrikaans original.
