What home sellers need to know about Mandatory Property Disclosure

Selling one’s home is not a simple matter of putting it on the market and accepting the best offer – there are a multitude of factors to consider and decisions to be made, and the to-do list now includes the Mandatory Property Disclosure Form, which is a legal requirement for all property sales. In fact, without it, an estate agent is not permitted to list or market your home.

“Introduced under the Property Practitioners Act (PPA) of 2022, it’s essentially a checklist where you disclose the known condition of your property, including defects, structural issues or any other factors that might affect its value or the buyer’s decision,” explains Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg.

“The Mandatory Disclosure Form covers areas such as the condition of the roof, walls, and foundations, plumbing and electrical systems, any history of leaks, damp, or flooding, the status of fixtures and fittings, and whether any alterations were done without approved building plans.

“This form must be completed and signed by both seller and prospective buyer and attached to the sale agreement for the sale to go ahead.”

Odendaal says that he purpose of the form is to fulfil the following functions:

1. Legal Compliance: Without a completed disclosure form, your estate agent (or property practitioner) is not legally permitted to market or sell your property. Compliance isn’t optional - it’s mandatory.
2. Transparency Builds Trust: Buyers want peace of mind. By openly declaring the known condition of your home, you create trust and credibility, which can help secure a sale faster.
3. Protect Sellers from Future Claims: One of the biggest benefits for sellers is that the form reduces the risk of being sued for defects after transfer. If you’ve disclosed known issues, buyers cannot later claim you withheld information.
4. Informed Buyers Make Better Offers: When buyers know exactly what they are purchasing, they are more likely to proceed with confidence, even if some defects are noted. Surprises discovered later can derail sales.

He cautions that although it's tempting to highlight only your home’s best features while sweeping any flaws under the rug, failing to disclose known issues can have serious consequences down the line.

When contemplating disclosure, Odendaal says that sellers need to understand the difference between latent and patent defects, as these terms are central to disclosure in real estate transactions.

“Patent defects are visible or obvious issues that a reasonable inspection would reveal, for example, cracked tiles, broken windows or peeling paint. Buyers are generally expected to notice these themselves, but sellers should still disclose them in the form to avoid disputes.

“Latent defects, on the other hand, are hidden problems not easily detected during a normal inspection, such as faulty wiring, roof leaks or rising damp concealed behind fresh paint. These are particularly important to disclose because buyers cannot reasonably be expected to identify them before purchase.”

It’s easy to say to oneself that if you don’t disclose certain issues, the buyer won’t find out, or that minor issues don’t matter. Odendaal cautions that most defects eventually do come to light, whether through inspections, valuations, or after the buyer moves in, and non-disclosure can lead to costly legal disputes or scupper the sale before it even happens.

“In reality, buyers are more forgiving of known, minor defects than undisclosed problems discovered later; therefore, disclosure often increases, rather than decreases, buyer confidence. At the end of the day, disclosing issues from the outset can actually work in your favour by preventing last-minute negotiations or having the deal fall through due to unexpected discoveries.”

When completing the form, Odendaal says that it’s important to be honest and thorough and, if you don’t know the answer to a question, rather state that than try to guess.

“Instead of viewing the form as a hurdle, treat it as a selling tool and an opportunity to showcase your property’s strengths and demonstrate your integrity as a seller.

“It might also be worth your while to hire a professional inspector before you list your property, especially if your home is older. This will give you a clear idea of existing issues, and you’ll have the option to either fix or disclose them accurately.

“It’s also important to work closely with your agent, as they will be able to guide you through the process and help you to understand what should and shouldn’t be included.

Property practitioners play an essential role in ensuring the disclosure form is completed and attached to the sale agreement, and, importantly, agents who market a property without this document risk penalties, and the sale itself could be challenged.

“By law, agents must advise sellers on the importance of full disclosure, ensure the form is completed and signed before listing, and provide copies to prospective buyers,” explains Odendaal.

The disclosure form doesn’t just protect buyers - it can also help sellers during price negotiations.

For example, if you’ve disclosed that the roof may need repairs in a few years, this issue can’t later be used by the buyer as a bargaining chip after an offer is made. By putting everything on the table upfront, negotiations become clearer and more straightforward.

Odendaal concludes: “For home sellers, the Mandatory Property Disclosure Form is more than just another piece of paperwork; it’s a legal safeguard and a trust-building tool, and while it may feel daunting to reveal every imperfection in your home, disclosure ultimately works in your favour by reducing risk, speeding up sales, and fostering confidence among buyers.

“And, in today’s property market, where buyers are cautious and well-informed, honesty is not only the best policy, it’s now the law. By embracing the disclosure process, sellers protect themselves, empower buyers, and help create a more transparent and trustworthy property industry for all.”

We cover the importance of home inspections and everything buyers and sellers need to know in our guide.