Accountants Are Secretly Acting as Estate Agents — And Many Don’t Even Know It

A Question More Members Are Starting to Ask

A CIBA member recently raised an important question that many accountants in practice may not have considered before.

The member had assisted a client with a property transaction by facilitating discussions between the parties and helping structure the sale. In return, the accountant received a fee described in the agreement as a “professional service fee” rather than a commission. The question was straightforward: does an arrangement like this require registration with the Property Practitioners Regulatory Authority?

At first glance, the answer may seem obvious. Accountants are not estate agents, and their involvement in a transaction is often advisory in nature. However, the regulatory framework governing property transactions in South Africa is broader than many professionals realise.

The Expanding Scope of Property Regulation

The Property Practitioners Act 22 of 2019 introduced a much wider definition of who may be considered a “property practitioner.” While the term traditionally referred to estate agents, the legislation now includes a broader range of individuals and entities involved in property transactions.

Under the Act, a person may fall within this definition if they facilitate or negotiate the sale or purchase of property for another party and receive remuneration for doing so. The focus is therefore not on the professional title of the individual involved, but rather on the nature of the activities they perform in relation to the transaction.

For professionals whose work occasionally intersects with property deals, this distinction becomes important. A person who assists in bringing parties together, helps negotiate terms of a sale, or plays a role in structuring the transaction may, depending on the circumstances, be regarded as acting as an intermediary in a property transaction.

Why the Description of the Fee Matters Less Than the Activity

One of the most common misunderstandings arises from the way fees are described in agreements. Some professionals believe that by describing their remuneration as a “consulting fee” or “facilitation fee,” rather than a commission, they can avoid falling within the regulatory framework that applies to property practitioners.

In practice, regulatory frameworks rarely rely solely on the labels used in contracts. Instead, they tend to consider the substance of the activity being performed. If a professional is effectively facilitating the conclusion of a property transaction and earning remuneration connected to that transaction, the fact that the fee is described as a professional service fee may not change the regulatory analysis.

This approach reflects a broader legal principle often applied in regulatory and commercial law: What matters most is what the parties actually do in practice.

When Accountants Cross the Regulatory Line

Accountants increasingly play a strategic role in their clients’ business decisions. It is therefore not unusual for clients to involve their accountant in discussions relating to property acquisitions, disposals, or investment opportunities.

In many situations, this involvement remains firmly within the boundaries of advisory work. Providing tax advice on a property transaction, analysing the financial implications of a purchase, or assisting with financing arrangements would typically not place an accountant within the regulatory scope of property practitioner legislation.

The position may begin to change, however, when the accountant moves beyond advisory support and becomes actively involved in introducing the parties to the transaction, negotiating the terms of the sale, or facilitating the agreement between the buyer and seller. At that point, the accountant may be performing functions that resemble those traditionally associated with property practitioners.

The Importance of the Fidelity Fund Certificate

Where a person is regarded as acting as a property practitioner, the legislation requires that they hold a valid Fidelity Fund Certificate issued by the regulator before performing those services.

The significance of this requirement is often underestimated. The legislation provides that a person who performs property practitioner activities without holding a valid certificate may not be entitled to claim remuneration arising from those activities. This means that even where the professional has played an important role in successfully concluding a transaction, their ability to enforce payment for those services may be affected if the regulatory requirements were not met at the time the work was performed.

For small professional practices, this creates a practical risk that should not be overlooked.

A Growing Compliance Issue for Small Practices

The modern role of the accountant extends far beyond traditional bookkeeping or tax compliance. Many CIBA members now act as trusted business advisors to their clients, providing guidance on investments, transactions, and long-term strategic decisions.

While this expanded role creates new opportunities for professional growth and additional income streams, it also exposes practitioners to regulatory frameworks that were not originally designed with accountants in mind. Property regulation is one example of how professional boundaries are becoming increasingly complex.

Understanding where those boundaries lie can help practitioners avoid unintended regulatory exposure while continuing to provide valuable advisory services to their clients.

Why Awareness Matters

For accountants who occasionally assist clients with property-related transactions, the key issue is awareness rather than alarm. In many cases, advisory involvement will remain entirely outside the scope of property practitioner regulation. However, where an accountant becomes more directly involved in facilitating the transaction itself, it may be necessary to consider whether the regulatory requirements of the Property Practitioners Act apply.

Taking the time to review how these services are structured can help protect both the practitioner and the client while ensuring that professional fees remain secure and enforceable.

Join CIBA and we’ll show you how to expand your advisory services while staying compliant with South Africa’s evolving regulatory environment.