The Disclosure Form and the Property Practitioners Act - What it is and Who is Protected
Category 3%.Com Properties
The Property Practitioners Act ('the Act') came into effect on 1 February 2022.
The Act requires a mandatory 'Disclosure Form,' and you may wonder what it is and who is protected.
At 3%. Com Properties®, we are Lawyers selling property, and we can help you to unpack the answers to these important questions. Contact us today or visit our website to find out more.
What is this Disclosure Form?
According to Section 67 of the Act, Property Practitioners (Agents) must not accept a mandate unless the Seller or Lessor has completed and signed a Disclosure Form in the prescribed form. The Disclosure Form must contain a complete list of all the property defects of which the Seller/Lessor is aware, or should reasonably, be aware of. Click here to see the Disclosure Form.
This Disclosure form must be completed and signed by the Seller/Lessor before the property is listed and must be attached to the sale agreement.
If not, the sale agreement will be interpreted as if the property has no defects.
Who is protected by the Disclosure Form?
Section 67 not only places a legal duty on the Seller, but also on the Property Practitioner. Section 67(3) provides that if a Property Practitioner fails to comply with this section, he or she may be held liable by an affected consumer.
An affected consumer could be either the seller or the purchaser or both.
The Disclosure Form is an attempt to protect the purchaser in a property transaction.
But Sellers Beware
To some extent the Act goes too far to protect the purchaser's interest and at the cost of the seller.
There are many instances where the seller may be unaware of latent (invisible) defects in the property. But, to protect himself, an overcautious and overzealous Property Practitioner, may persuade a seller to say there are no defects when, in fact, there are.
Property Practitioners should be mindful that, first and foremost, they act for the seller who has mandated the Practitioner to sell the property for, and to protect the seller.
A Property Practitioner has both a legal and contractual duty to protect the seller and to act in his best interests.
If a seller is uncertain if a property has a latent or other defect, the Property Practitioner should advise the seller to say so and not to make false promises about the condition of the property.
This way the seller and the Property Practitioner will not only comply with the Act, but the seller will not be guilty of making promises that are not true.
Conclusion
As a Seller, ensure that you complete the Disclosure Form as thoroughly as possible. But if you are unsure or do not know, say so, to avoid future challenges, or worse, a legal claim.
Contact us or visit our website to find out more.
Author: 3%.Com Properties