The Property Practitioners Act 22 of 2019 (PPA), which came into operation on 1 February 2022, stipulates that property practitioners must ensure that property sellers complete and sign disclosure forms before they accept a mandate to sell a property.
The disclosure form requires sellers to disclose any known defects or problems with the property, such as leaks, cracks, or electrical faults. This form also covers issues related to zoning, land use, and environmental concerns.
The aim is to ensure prospective buyers are aware of any potential risks or liabilities associated with the property. In the absence of the disclosure form, the Act specifies that it will be interpreted as if no defects or deficiencies on the property were disclosed to potential buyers.
In terms of Section 67 of the Act, a property practitioner may not accept a mandate without this form. Any property practitioner who accepts a mandate without this form being attached to the agreement of sale or lease agreement may be held liable by the buyers in the event of any defects subsequently coming to light.
Additional requirements
In addition to the PPA, the National Building Regulations and Buildings Standards Act 103 of 1977 also requires that sellers provide a compliance certificate for any alterations or additions to the property that were made after 1985.
This certificate confirms that any alterations carried out are in accordance with the applicable building regulations and standards. It helps to protect buyers from potential liability for non-compliance.
Another important form is the Homeowners’ Association (HOA) disclosure form. This is required for properties in communities or developments managed by homeowners’ associations. It contains information on the rules and regulations of the HOA, in addition to fees or assessments, buyers may be responsible for. Examples could include monthly maintenance fees or special repairs or improvements.
Buyers and sellers can also use other means to ensure that all necessary information concerning a property is disclosed. For example, buyers or sellers can commission professional property inspection reports to identify any defects or problems that may not be obvious.
Consumer protection
Disclosure forms enable buyers to make informed buying decisions and also protect them from future potential legal and financial problems.
Whether you are a first-time buyer or a seasoned property magnate, it’s essential that you carefully read disclosure forms. If you have any questions, ask for advice from a qualified professional.
Writer: Sarah-Jane Meyer