Patrick Bracher, financial services lawyer and senior director in the commercial department at Norton Rose South Africa (formerly DeneysReitz Attorneys), outlines just who is protected:
“The ‘consumer’ as defined by the Act includes all companies with a turnover or asset base of R2 million at the time of the transaction, as well as all individuals.” (From thinksales)
What this means is that the act protects the end-user from being duped by purchasing defective property – even if bought through an agent or reseller. This means that much of the responsibility lies in the hands of the seller and is not the sole responsibility of the agent.
As Real Estate agents, we value our clients’ needs to sell or to buy and want to make sure that all transactions are smooth, efficient and beneficial to the parties concerned. Here are two main points in the new CPA legislation to be aware of:
Cooling-off period
A five-day cooling-off period is now available to the buyer, from the date of transfer. This only applies to property that is bought through direct marketing and is not applicable to show houses and conventional print advertising (this does not included fliers that are delivered to mailboxes). It is important to note that the cooling-off period is from the date of transfer, and not from the date of signature. This process can take between three to six months; a delay of this length can be seriously problematic for all parties concerned if cancellation does occur during the cooling off period.
“Voetstoots” is no longer valid
If the sale is in the ordinary course of business: ie. sold by someone who regularly sells property, the CPA will prevent the voetstoots sale of property. Developers, speculators and investors with property portfolios can no longer rely on this Roman Dutch Law clause to exclude their liability from defects.
It is crucial that the seller do all that they can to eliminate any potential issues that might arise from failure to disclose defects of their sold property. At Rivigan Property Group, we want to try and protect all of our clients – both sellers and buyers. Contact us today and let us help you make the best purchase or sale.
As Real Estate agents, we value our clients’ needs to sell or to buy and want to make sure that all transactions are smooth, efficient and beneficial to the parties concerned. Here are two main points in the new CPA legislation to be aware of:
Cooling-off period
A five-day cooling-off period is now available to the buyer, from the date of transfer. This only applies to property that is bought through direct marketing and is not applicable to show houses and conventional print advertising (this does not included fliers that are delivered to mailboxes). It is important to note that the cooling-off period is from the date of transfer, and not from the date of signature. This process can take between three to six months; a delay of this length can be seriously problematic for all parties concerned if cancellation does occur during the cooling off period.
“Voetstoots” is no longer valid
If the sale is in the ordinary course of business: ie. sold by someone who regularly sells property, the CPA will prevent the voetstoots sale of property. Developers, speculators and investors with property portfolios can no longer rely on this Roman Dutch Law clause to exclude their liability from defects.
It is crucial that the seller do all that they can to eliminate any potential issues that might arise from failure to disclose defects of their sold property. At Rivigan Property Group, we want to try and protect all of our clients – both sellers and buyers. Contact us today and let us help you make the best purchase or sale.
