Selling in an estate? High Court rejects bid to legalise agent fees
The High Court in Johannesburg dismissed a bid by estate bodies to declare that estates may charge agents a fee to sell or market homes. Here is what the 20 October 2026 ruling means.
The High Court in Johannesburg has refused to declare that residential estates may charge estate agents a fee for the right to market or sell homes inside the estate. The ruling, handed down on 20 October 2026, backs the Property Practitioners Regulatory Authority (PPRA), which treats these fees as a banned business practice (Department of Human Settlements statement).
If you own a home in an estate, it matters because these "accreditation", "administration" or "marketing" fees can limit which agent you are able to use when you sell or rent out.
What did the court decide?
The Residential Communities Council and the Association of Residential Communities asked the court for an order declaring that charging agents a fee to work in an estate is not an "undesirable business practice" under the Property Practitioners Act. Acting Judge NS Krüger dismissed the application with costs (Moneyweb).
The judge found the order was framed too broadly and that the applicants had not properly set out what the fee was or when it was demanded. The applicants represent about 181 estates (Moneyweb).
The court also said the PPRA's reading of the law, which counts these fees as prohibited conduct, "appeared to be in line with the intention of the legislator" (PPRA notice).
Does this ban every estate fee for agents?
Not automatically. The court said whether a particular fee is lawful depends on the facts: the type of organisation, what it does, what the fee is for and how it is charged (Department of Human Settlements statement).
What changed is that the estates failed to get a blanket ruling protecting the practice nationally. The PPRA says it has always regarded these fees as unlawful and can keep enforcing sections 62 and 63 of the Act and regulation 35 of the 2022 regulations against them (PPRA notice).
What did the estates say the fee was for?
In a 2023 letter placed before the court, the Residential Communities Council's managing agent said agents register with homeowners' associations for security and so buyers and tenants know the estate rules. It described an all-in administration fee that could cover website adverts, extra security on show days, records of rentals and agent queries (Moneyweb).
The PPRA argued the fee was "a fig leaf" and an extra income stream that hurts agents who refuse to pay, especially newer, previously disadvantaged agents (Moneyweb).
Why could agents who pay be in trouble?
The judge noted that agents who pay such a fee "may well fall foul" of the undesirable business practice rules the PPRA must enforce (Moneyweb). The PPRA described this as the "invidious position" of an agent who pays to be accredited and then faces sanction (PPRA notice).
What does it mean for sellers and buyers?
The judgment said, depending on the estate, the practice may not benefit sellers or buyers and may hold back property sales and new agents entering the market (Moneyweb). Human Settlements Minister Thembi Simelane said the ruling lets the PPRA keep pushing for a fair property sector with proper consumer protection (gov.za).
How do I raise a concern with the PPRA?
The PPRA can be reached on 087 742 0000 or [email protected], Monday to Friday from 08:00 to 16:30 (PPRA).
FAQ
Can residential estates charge estate agents a marketing or accreditation fee?
The PPRA treats such fees as a prohibited undesirable business practice. On 20 October 2026 the High Court in Johannesburg dismissed an application by estate bodies to declare the practice lawful, though it said each case depends on its facts.
Who brought the case?
The Residential Communities Council and the Association of Residential Communities, which represent about 181 estates, against the Minister of Human Settlements, the PPRA and the National Property Practitioners Council.
Can an estate agent be sanctioned for paying an estate's fee?
The judge said agents who pay such a fee may well fall foul of the undesirable business practice rules that the PPRA enforces.
Does the ruling apply to every estate in South Africa?
The court refused a blanket national order. Whether a specific estate's fee is lawful depends on the organisation, its functions, the nature of the fee and how it is imposed.
How do I contact the PPRA?
Call 087 742 0000 or email [email protected], Monday to Friday, 08:00 to 16:30.