East, west, home truths are still best

The Consumer Protection Act (CPA) does not negate or override the voetstoots clause that still appears in most property sale agreements, according to Bill Rawson, chairman of the Rawson Property Group.

He says this issue has been extensively discussed by property and legal experts as many consumers are still under the impression that the voetstoots clause is no longer applicable to home sales and may not be included in sale agreements.

“They seem to think that if they find any latent defects in a property after buying it, the CPA will entitle them to cancel the deal and get their money back, or claim damages either from the seller or from the agent who facilitated the deal.

“However, this is simply not true. It has become clear that the CPA may apply in some cases where the seller is a property developer or a speculator whose usual business is to build homes and sell them. However, it does not apply when individual homeowners are selling their homes to other individuals – because it is not the usual business of the seller to sell property.

“In addition, since an agreement of sale is a contract between seller and buyer, and the estate agent is generally only the facilitator of that agreement, buyers cannot look to the agent for damages if they later decide they are not satisfied with their purchase.”

This means, Rawson says, that sellers or their agents are still allowed to include a voetstoots clause, which basically states that the buyer is agreeing to buy the property “as is” or “as it stands” on the date of the sale agreement, including all visible and invisible defects and any conditions or servitudes contained in the title deeds.

“Buyers are of course quite entitled to refuse to accept this clause, but if they do accept it, they won’t be able to cancel the sale agreement if defects are later found in the property, unless they can prove that these are latent defects and were deliberately concealed with the intention to defraud them.”

This was once again confirmed in a recent Pietermaritzburg High Court case (Haviside v Heydricks and Another) in which the court found in favour of the seller despite the fact that the buyer only discovered certain defects after the transfer of the property.

“The judgment was that the voetstoots clause in the sale agreement meant that the buyer had agreed to buy the property as it stood and that the seller could not be held liable for latent or patent defects. If the buyer had wanted to escape the provisions of the voetstoots clause, he would have had to prove that that seller intentionally withheld the information from them, but the buyer had not done so.”

In other words, Rawson says, the situation with regard to ordinary home sales is actually much as it was before the introduction of the CPA – and buyers should still inspect any home they are thinking of buying with great care, and get a professional home inspector to help them if necessary.

“At the same time, we really believe home sellers should be as open and honest as possible about any defects that are known to them and go the extra mile to show they are not deliberately concealing any faults and are ready to negotiate transparently and in good faith.

“And the best way to do this is to work with a professional agent who really understands that his or her job is not just about marketing your home and finding prospective buyers, but also about seeing the transaction through to the end, when the property is successfully transferred to a new owner.”

Such an agent, he says, will diligently go through your home in detail and properly assess how it compares to others on the market or recently sold in your area, and then help you to set a listing price that is fair for the property in its current condition. The agent should also be able to tell you what repairs or improvements would be essential and/or most cost effective if you want to attract more prospective buyers and better this price.

“On top of that, most reputable agents these days will ask you to sign a detailed disclosure report to be incorporated in the sale agreements and also signed by the buyer, so there can be no dispute later about what was and was not disclosed.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 23 Feb 2018
      RE/MAX Property Associates’ Table View Office, which services property buyers and sellers along the Table Bay coastline and surrounds, has recently sold a home in Woodbridge Island for R11 million – the highest price paid for any home in the sought-after security complex.
    • 23 Feb 2018
      Choosing to invest in an overseas property can be daunting. But as more and more investors recognise the value of a diversified portfolio that includes property outside of their own country of residence, international property investment is growing in popularity.
    • 23 Feb 2018
      The positive change in South Africa’s political landscape is paving the way for an upswing in the local property market.
    • 22 Feb 2018
      An excellent credit score is one of the most priceless assets a potential home buyer can have. This tool has the power to secure favorable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.
    • 22 Feb 2018
      What do you do if you love your home’s location and the area, but the home no longer fits your growing family’s needs? Do you stay and renovate your existing home or find a home that meets your developing criteria?
    • 22 Feb 2018
      While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us