Complicated jargon could make contracts invalid in terms of the Consumer Protection Act

One of the more hotly debated points to come up at a recent franchise staff training day (attended by some 100 people) at the Rawson Property Group’s Western Cape head office was that some estate agents believe that many of the documents used in property transactions are still, despite many protests on this subject, too cumbersome, complicated and prone to use jargon and legal terms which many laypeople have difficulty in understanding.

Bill Rawson, Chairman of the Rawson Property Group, who was sitting in on the training session said that he found himself agreeing wholeheartedly with the criticisms levied.

“It is,” he said, “all very well to tell us, as is frequently done, that the wording is satisfactory to the legal profession, but that is not enough – it has to be easily understood by the vast majority of members of the public.”

If this message is not taken to heart by those compiling property documents, said Rawson, they are likely to find that their clients, especially estate agents, will be contravening the Consumer Protection Act.

This act, said Rawson, lays it down not only that the client in any sales transaction has to vouch that he has fully understood the sales document but he has to do so in the presence of the estate agent and in most cases has to sign another document to this effect.

“If at any stage it can be shown that the client did not, in fact, understand, this provides grounds for the cancellation of the contract. Awkward though it may sound, there is absolutely no getting around this very difficult provision in the Consumer Protection Act and the property marketing sector is going to have to come to terms with it by simplifying and streamlining its documentation.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us