+27 31 035 1055
admin@brookes.co.za

BOOK A CONSULTATION

WHAT TO KNOW ABOUT MANDATORY DISCLOSURE FORMS

Mandatory disclosure forms are legal documents that require individuals and entities to disclose certain information as required by law. These forms vary depending on the specific regulations governing the disclosure requirements as well as jurisdiction. We will be unpacking the importance of mandatory disclosure forms relating to immovable property and the Property Practitioners Act, 2019.

 

The purpose of the mandatory disclosure form is threefold:

  1. To protect the Property Practitioner;
  2. To alert the purchaser to the right to have the property inspected independently at his/her own cost, and
  3. To allow the seller/landlord the chance to disclose any of the latent defects referred to therein, and which he/she might know of.

 

The Act aims at protecting and promoting the interest of consumers and the general public. The form requires the seller / lessor to disclose the defects in the property, such as those that are reasonably and easily identifiable upon inspection of the property, those that may be discovered at a later stage as well as those which were deliberately concealed. In addition, the Act aims to make sure that the property practitioner assists the contracting parties in ensuring that all the defects are declared.

 

The Act states that if there is no disclosure form attached to the agreement, then the agreement “must be interpreted as if no defects or deficiencies of the property were disclosed to the purchaser”.


Section 67 of the new Property Practitioner Act states that:

 

(1) A property practitioner must—

 

(a) 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

(b) 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.

 

(2) The completed mandatory disclosure form signed by all relevant parties must be attached to any agreement for the sale or lease of a 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.

 

(3) A property practitioner who fails to comply with subsection (1) may be held liable by an affected consumer.

 

(4) Nothing in this section prevents the Authority from taking action against a property practitioner or imposing an appropriate sanction.

 

(5) Nothing in this section prevents a consumer, for his or her own account, from undertaking a property inspection to confirm the state of the property before finalising the transaction.


The contents of a property disclosure form can vary depending on the property condition and history.

 

If you would like a copy of the Mandatory Disclosure Form or if you have any questions or concerns, please feel free to contact us:

031 035 1055 | admin@brookes.co.za | Cherise Venketiah

Related Posts