THE DISCLOSURE FORM
Category Property Advice
Seller's Duty to Disclose Defects - What the Law Says
Under the Property Practitioners Act (PPRA), a Seller must complete a property disclosure form. This document tells the buyer about the physical condition of the property, including any visible (patent) or hidden (latent) defects.
The completed disclosure form must be attached to the sale agreement and given to the buyer before they sign an offer.
What the Disclosure Form Does and Does Not Do
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The form gives the buyer general information about the state of the property.
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However, it does not remove the protection the Seller has under the voetstoots clause.
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The Seller is still protected from claims about defects they did not know about, even if those defects are serious.
What Buyers Should Know
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Buyers are still expected to inspect the property properly.
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The Seller is not responsible for fixing any defects that were already disclosed.
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The Seller only has to fix:
- Defects that they promised to fix in the sale agreement,
- They gave a warranty for (for example, saying the roof was fixed when it was not).
Warranties Create Legal Responsibility
If the Seller guarantees that something was fixed (for example, a leaking roof), and it turns out not to be true, the Seller will be held responsible for that defect.
What if the Seller cannot give a Declaration?
If the Seller is overseas, or is an Executor of a deceased estate, and does not have personal knowledge of the property's condition, they must state this clearly in the disclosure form.
Author: OYSTER
