Embedded Files
Since the full implementation of the Property Practitioners Act, Act 22 of 2019 earlier this year, everyone in the real estate industry has been abuzz with talk of the Property Condition Reports. These reports have become an essential part of property transactions, but what exactly are they, what purpose do they serve, and who do they apply to? In the following paragraphs, we will delve into the details and provide a comprehensive understanding of this new requirement.
To begin with, it is crucial to understand that, under the provisions of the law, any legal entity intending to sell or lease a property is now legally compelled to complete a Property Condition/Mandatory Disclosure Form. This form must be completed and attached to the official mandate provided by the property practitioner who is handling the sales or lease agreement. "The law is very clear on this matter," emphasizes Jurgens Tubb, director at MHI Attorneys. "No property practitioner may accept any for sale or to let mandate without a Property Condition/Mandatory Disclosure Form."
Now, let's explore the contents of this mandatory form. The form, prescribed by the law, requires sellers and landlords to disclose various aspects related to the property. This includes defects in electrical systems, septic or other sanitary disposal systems, and any structural defects, among others. The intention is to ensure that potential buyers or tenants have a comprehensive understanding of the property's condition before entering into an agreement. The form also covers inquiries regarding boundary disputes, encroachments, encumbrances, and details of any remodeling or refurbishments made to the property. Sellers and landlords must answer these questions accurately and honestly.
Furthermore, the completed form must be presented to the purchaser/tenant and attached to the Deed of Sale/Rental contract. It is essential for all parties involved in the transaction to sign the form to validate the agreement. Failure to have this form signed and attached to the offer could result in potential repercussions for property practitioners. Regulation 38 specifies that the breach of this section constitutes a minor offense, carrying a penalty of R15,000. While considered minor, repeated infractions can accumulate into a substantial amount.
The introduction of the Property Condition Report aims to safeguard the interests of both sellers, landlords, buyers, tenants and property practitioners. By ensuring that comprehensive information about the property's condition is disclosed upfront, all parties can make informed decisions and avoid potential disputes down the line. "This new form may appear daunting at first, with its increased paperwork requirements, but it is designed to protect all parties involved in the transaction," reassures Jurgens Tubb.
Property practitioners play a pivotal role in guiding all parties through the process and ensuring compliance with the new law. Their expertise and assistance are invaluable in facilitating a smooth and enjoyable experience throughout the transaction period. By adhering to the requirements of the Property Condition/Mandatory Disclosure Form, property practitioners can provide peace of mind to buyers, sellers, landlords and tenants fostering trust and transparency in the real estate market.
In conclusion, the implementation of Property Condition Reports, as mandated by the Property Practitioners Act, Act 22 of 2019, has brought about a significant change in property transactions. This new requirement ensures that sellers and landlords provide comprehensive information about the property's condition, defects, and any relevant disputes or encumbrances. Property practitioners act as facilitators, ensuring compliance with the law and assisting all parties involved in the transaction. While the additional paperwork may seem burdensome initially, it ultimately serves to protect everyone involved and foster a seamless and transparent transaction process.
For all your property needs and assistance with navigating these new requirements, you can rely on Seeff, contact or visit your nearest branch.
Author: Property Engage
Google Sites
Report abuse