The Gauteng Local Division of the High Court of South Africa in Johannesburg has delivered its judgment in the high-stakes dispute regarding residential estate accreditation fees.
On Tuesday, 20 October 2026, the High Court dismissed the application for a declaratory order brought forward by the Residential Communities Council (NPC) and the Association of Residential Communities CC.
The Minister of Human Settlements, Thembi Simelane, has welcomed a historic judgment delivered by the Gauteng Local Division of the High Court in Johannesburg on Tuesday, 20 October 2026.
The landmark legal battle involved the Residential Communities Council (NPC) and the Association of Residential Communities CC as applicants against the Minister of Human Settlements, the Property Practitioner Regulatory Authority (PPRA), and the National Property Practitioners Council.
In its ruling handed down on 20 October 2026, the High Court firmly dismissed the applicants’ bid for a sweeping declaratory order, dealing a major blow to attempts by residential estates and homeowners’ associations to bypass regulatory scrutiny regarding the exclusive fees they charge estate agents.
The court found that the applicants failed to establish sufficient grounds for the broad national relief they sought in respect of residential estates, homeowners’ associations, body corporates, and various governing bodies. Crucially, the judgment recognizes that the lawfulness of contested practices—such as forcing property practitioners to pay substantial fees as a condition for marketing and selling properties within developments—depends entirely on the specific circumstances of each case.
The bench acknowledged that such restrictive practices can heavily disadvantage individual property practitioners, restrict consumer choice for homeowners, and create unfair barriers to entry within the South African property sector.
The regulatory body’s firm opposition to the application was deeply rooted in its statutory mandate to enforce compliance and shield consumers from predatory real estate environments.
The PPRA maintained throughout the litigation that the imposition of these exclusive access fees may constitute an undesirable business practice under Regulation 35 of the Property Practitioners Regulations of 2022, read together with sections 62 and 63 of the Property Practitioners Act 22 of 2019.
This decisive judicial victory represents a massive shift in the long-standing national debate surrounding the absolute authority of private housing estates over open market operations.
Minister Simelane emphasized that the dismissal of the declaratory order empowers the Department of Human Settlements, through the PPRA, to continue actively building a fair, transparent, and inclusive property sector.
The ruling ensures that the regulatory authority can continuously evaluate individual estate practices against the core pillars of the legislative framework, which champions fair market access, robust consumer protection, and urgent transformation.
Minister Simelane reiterated that the PPRA will aggressively exercise its regulatory responsibilities under the law to hold property markets accountable and systematically dismantle monopolistic practices that keep historically disadvantaged practitioners out of lucrative residential markets.
“The dismissal of a declaratory order enables the Department through its entity, the PPRA to continue advancing for a fair, transparent, and inclusive property sector in which property practitioners can operate within the law and consumers are afforded appropriate protection. The Authority will continue to exercise its regulatory responsibilities in accordance with the Property Practitioners Act and applicable regulations, with due regard to the facts and merits of individual matters, and drive initiatives aimed at transforming the sector,” said Simelane.
