FOR IMMEDIATE RELEASE
12 September 2025
Unregistered “Private Sales” Companies Put Buyers and Sellers at Risk, Warns Acutts Real Estate
South Africa – Jonathan Acutt, Managing Director of Acutts Real Estate, has cautioned that unregistered “private sales” companies are leaving both home buyers and sellers exposed to unnecessary risks in today’s already challenging property market.
In terms of the Property Practitioners Act, anyone advertising a property for sale “for gain” is legally considered a Property Practitioner and must be registered with the Property Practitioners Regulatory Authority (PPRA). This includes holding a valid Fidelity Fund Certificate (FFC), which protects buyers and sellers should anything go wrong during a transaction.
“When unregistered companies advertise so-called private sales, buyers and sellers have no protection from the PPRA,” explains Acutt. “This means no recourse if there are disputes, misrepresentations, or financial losses.”
Impact on Sellers
For sellers, using unregistered operators often leads to overpriced listings that fail to sell, since these companies generally lack access to accurate sales data. Without professional guidance and a legally required comparative market analysis, properties can sit on the market for months, gaining a “stale listing” stigma and often eventually selling below market value.
Sellers also forfeit the legal and financial protections offered when dealing with registered Property Practitioners, exposing them to far greater risk.
Impact on Buyers
Buyers are equally vulnerable. Without accurate valuations or access to Deeds Office sales records, private sellers often set unrealistic prices. This results in buyers unknowingly paying well above market value.
“The belief that buying privately saves money is often a costly misconception,” says Acutt. “In many cases, buyers end up overpaying for a property that would have been correctly priced through a registered professional.”
Furthermore, without the oversight of the PPRA, buyers lose the security of knowing that their agent is bound by a strict Code of Conduct and subject to disciplinary action if misconduct occurs.
The Safer Route
Acutts Real Estate urges buyers and sellers to always:
• Confirm that their agent holds a valid Fidelity Fund Certificate
• Avoid engaging with unregistered companies that advertise “private sales.”
• Choose a professional Property Practitioner who provides a comparative market analysis and transparent guidance based on verified market data.
Bottom Line:
By working with registered Property Practitioners, buyers and sellers not only enjoy full legal protection but also achieve fair, market-related transactions. In contrast, unregistered “private sales” companies leave consumers unprotected, overexposed, and often out of pocket.
Media Contact:
Ashleigh Perry-Steenkamp
Head Office Manager – Acutts Real Estate
marketing@acutts.co.za | +27 (0)31 396 2969
