Consumers and the Property Practitioners Bill

Has the Property Practitioners Bill missed the point?

Are consumers offered more protection?

Parliament passed the new Property Practitioners Bill on Tuesday 4^th December 2018. This bill has been on the cards since 2011!

The Bill was supposed to finally provide buyers (consumers) more protection in the secondary housing market.

However, it appears the Minister of Human Settlements and his staff and the National Assembly totally missed the point!

Here is that portion of the Bill:

CHAPTER 10 CONSUMER PROTECTION

Mandatory disclosure form

A property practitioner –
1. may not accept a mandate unless the seller or lessor of the property has provided him or her with a fully completed and signed mandatory disclosure in the prescribed form; and
2. must provide a copy of the completed mandatory disclosure form to a prospective purchaser or lessee who intends to make an offer for the purchase or lease of a property.
The completed mandatory disclosure form signed by all relevant parties must be attached to any agreement for the sale or lease of property and forms an integral part of that agreement, but if such a disclosure form was not completed, signed or attached, the agreement must be interpreted as if no defects or deficiencies of the property were disclosed to the purchaser.
A property practitioner who fails to comply with subsection (1) may be held liable by any affected consumer.
Nothing in this section prevents the Authority from taking action against a property practitioner or imposing an appropriate sanction.
Nothing in this section prevents a consumer, for his or her account, from undertaking a private property inspection to confirm the state of the property before finalising the transaction.

This is the protection this Bill offers to buyers (consumers) who buy properties from sellers.

So what has changed?

26/07/201812/10/2024

Home Warranty

Is a Home Warranty worth the money you pay?

A new way to “protect” home buyers and enrich insurance companies is available in South Africa in the form of a “home warranty” which will protect home buyers against future defects for 2 years!

The “Voetstoots Clause”

Thousands of homes are sold without any guarantee that the homes are free of defects. These homes are all older homes sold with the “voetstoots” clause in the “offer to purchase”. The Consumer Protection Act does not protect you, the buyer, in this case. Selling his home is not the seller’s normal course of business.

The seller’s disclosure is required to declare all known defects. Can you trust that document?

I would not!

You have to prove that the seller was aware of the defects and did not disclose them!

The defects could be maintenance issues or latent defects that the seller knows about, but that are hidden from view. Such defects can cost a lot of money to fix. Furthermore, the legal process is expensive and frustrating if there’s any doubt that the seller did not disclose known defects.

About the home warranty

An insurance company is offering a “home warranty” to protect you from issues and defects for two years. In addition, the premiums are determined on an individual basis according to the insurer. However, the cost of this home warranty ranges from R12,000 for a one million Rand home to R28,000.00 for a five million Rand home!

The seller can include the cover as a feature of the sale, or the buyer may insist upon the home warranty as a condition of the sale. In both cases, payment for the warranty forms part of the offer to purchase.

There are costs like certificates of compliance, levies and rates clearances, bond cancellation fees and the estate agent’s commission on the sale that all come off the selling price. Then there are the costs the seller has of buying a new property and moving to it as well!

I can only wonder how many sellers will want to cough up such a large amount of money.

This leaves you, the buyer, to protect yourself by buying into the home warranty!

But what does the “home warranty” work and protect you against?

The key benefits of the home warranty are a cover against:

Roof, structure or workmanship defects.
Defects with foundation design, structure or workmanship.
Faulty electrics, plumbing, drainage, sewerage and gas installations.

If you have a bond on the property you want to buy, your bank will insist you have a homeowner’s insurance. Furthermore, except for the foundation and structure, homeowners insurance will cover most of the defects mentioned above. This includes flood water or storm damage to the structure.

In addition, the insurer’s home warranty includes a property inspection beforehand!

Why buy a home warranty?

A home warranty will provide a professional inspection report that lists any exclusions or defects so you know what you are dealing with when it comes to negotiation time.

24/12/201611/12/2025

Voetstoots clauses are still being used in 98% of Home Sales Contracts

Voetstoots Clauses in Home Sales

Read your Offer To Purchase contract carefully!

Beware of voetstoots clauses in the Offer To Purchase!

If you believe that the voetstoots clause is no longer applicable to home sales, you are mistaken. Estate agents and home sellers are using the clause in 98% of the “offer to purchase” agreements. Furthermore, the clause protects both the seller and the agent in case of legal ramifications for defects. The seller is not selling his home in his normal course of business. As a result, the Consumer Protection Act does not protect you!

In conclusion, just imagine what is wrong and can go wrong with the house you just bought if you don’t have a home inspection!

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Inspected once, Inspected Right!®

THE HOME DETECTIVE » voetstoots

24/11/201611/12/2025

Does Your Home Purchase Agreement Include The Infamous Voetstoots Clause?

The “Voetstoots Contract” puts your home purchase at risk!

With the “voetstoots” contract of sale for your home purchase are you aware of the risk you are taking? In that case, how do you protect your investment? With this in mind, watch the video in the link below!

Get a FREE Quote NOW!

Inspected once, Inspected Right!®

THE HOME DETECTIVE » voetstoots

24/10/201602/12/2025

Beat the Voetstoots clause

🏡 How to Beat the Voetstoots Clause When Buying Property in South Africa

With the voetstoots clause use a inspection contingency

In South Africa, most sale agreements include the voetstoots clause. The seller is selling the property “as is,” with all its faults. While this clause protects sellers from liability for defects, buyers can still protect themselves by using inspection contingencies, demanding transparency, and knowing when the law is on their side.

⚖️ What Is the Voetstoots Clause?

Definition: A legal provision stating the buyer accepts the property in its current condition, including defects.
Patent defects: Visible issues like cracked tiles or broken windows.
Latent defects: Hidden problems such as damp, faulty wiring, or structural damage.

🚫 When the Voetstoots Clause Doesn’t Protect the Seller

The clause doesn’t shield sellers who:

Conceal known defects intentionally.
Misrepresent the property’s condition.

🛠️ Use Inspection Contingencies to Protect Yourself

An inspection contingency is a clause in your offer that makes the sale conditional on a satisfactory property inspection. This especially important with the voetstoots clause in the Offer To Purchase.

Here’s how it helps:

Uncovers latent defects before you commit.
Gives you leverage to renegotiate the price or demand repairs.
You can walk away if serious issues are found on the property.

Tips for using home inspection contingencies effectively:

Hire a qualified home inspector — not just a builder friend.
Include a clear timeline for the home inspection and response.
Specify remedies — such as repair requests, price adjustments, or cancellation rights.

📋 Demand a Seller’s Disclosure

In South Africa, sellers must provide a seller’s disclosure when selling property privately. They complete the mandatory property disclosure form honestly and attach it to the sale agreement before signing. Especially with the voetstoots clause in the Offer To Purchase.

The Property Practitioners Act enforces this rule. Its purpose is simple: to make sure buyers know about any defects or issues before committing. This protects buyers, encourages transparency, and creates a clear record of what the seller knew:

Creates a paper trail of seller knowledge.
Helps prove concealment if disputes arise.
Encourages honesty and transparency.

🧠 Know Your Legal Remedies regarding a property sale with the Voetstoots Clause

If you discover defects after the purchase and can prove that the seller must have known about and concealed them.

You may claim damages.
You may cancel the sale.
You may challenge the voetstoots clause in court.

✅ Summary: Beat Voetstoots with Smart Strategy

Use an inspection contingency to give you time to uncover hidden issues.
Have a home inspection to uncover hidden issues.
Demand a seller’s disclosure for transparency.
Document everything and seek legal advice if needed.

Buying property “as is” doesn’t mean buying blind. With the right tools and awareness, you can protect your investment and beat the voetstoots clause.

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THE HOME DETECTIVE » voetstoots