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The Property Practitioners Regulatory Authority

The Property Practitioners Regulatory Authority (PPRA) wants a level 8 BEE certificate.  Why not just give them a level 2

In the BEE world the lower the level number the higher the rating, level 8 is the lowest and level 1 is the highest.  What the PPRA don’t understand is that if your turnover is between R2,500,000 and R35,000,000 then getting to that level 8 without ownership is prohibitively expensive and the BEE verification process takes months to complete.  And this has to be done every time your Fidelity Fund Certificate needs to be renewed.

It's likely that a court challenge will be launched against this PPRA decree, and it’s also likely that the legal action will find against the PPRA.  But that doesn’t solve your particular problem at the moment.

If your turnover at the end of your last financial year, or the previous financial year if that financial year was less than 18 months ago is less than R2.5m then all you need to do is submit an affidavit and you will be compliant.  Please email us and we’ll send you the correct affidavit.

However if your turnover was between R2.5m and R35m then it’s a slightly different game.  If you have 51% ownership then you are automatically a level 2 and sign an affidavit.  Ownership less than 51% results in a very expensive and complicated process and there are few guarantees that you will get to that level 8 that they want.

The solution lies in providing a black-owned company with an option to purchase those shares in your business at a much later date.  The advantages of this are

  • No shares change hands
  • You get the ownership benefit immediately
  • No tax implications
  • It is reversible. The option can be cancelled before the option date because it no longer suits the parties

We guarantee you a level 2 within 5 days.  There are no up-front costs, only a monthly subscription starting at R4,000/month.

If you are interested in knowing more email us at and we’ll set up a call to take you through it.  Or alternatively give Rudolf Rautenbach a call on 082 320 4067