Property Defects, Disclosure Forms and Voetstoots: What Buyers Should Know
The Property Perspective is a weekly radio show on 919 FM, airing every Tuesday at 4:15 PM with Al and Lesedi on The Drive Train.
Episode 27 | The Property Perspective with Etchells & Young
Finding your dream home is exciting, but what happens if you discover defects after buying it?
Following the previous episode on approved building plans, Harry joins Al and Lesedi on 919 FM to discuss property defects, the mandatory disclosure form and the voetstoots clause.
He explains what sellers should disclose, why buyers cannot rely on the disclosure form alone and how to deal with defects before signing an offer to purchase.
In This Episode
Harry discusses the checks and decisions that can help buyers avoid expensive surprises when purchasing a home.
Harry covers:
What the mandatory property disclosure form tells buyers
The difference between patent and latent defects
What sellers are expected to disclose about a property
Why buyers should inspect the home themselves
When a professional property inspection is worth considering
What the voetstoots clause means for buyers and sellers
How to negotiate repairs or a price adjustment
Why agreements about defects must be written into the offer to purchase
Listen to Episode 27
The Property Perspective airs weekly on 919 FM.
What Is a Mandatory Property Disclosure Form?
Harry explains that when a property is marketed through a property practitioner, the Property Practitioners Act requires a mandatory disclosure form to be completed by the seller. The form records the defects and issues the seller knows about.
The disclosure gives buyers important information, but it is not a guarantee that the property has no other problems. Buyers still need to inspect the home and ask questions about anything they do not understand.
Patent vs Latent Defects: What Is the Difference?
A patent defect is one that is reasonably visible on inspection, such as a crack in a wall. A latent defect is hidden or not easily detectable, such as a roof leak or rising damp concealed by a fresh coat of paint.
Harry stresses that a neat-looking house can still have problems. Buyers should be particularly careful when considering older homes, where wear, maintenance and age-related issues can arise.
What Must a Seller Disclose?
A seller should disclose defects that they know about. For example, if the roof has leaked repeatedly and has needed several repairs, that history should be brought to the buyer’s attention.
However, a seller cannot disclose a defect they genuinely do not know exists. This is one reason Harry cautions buyers against assuming that everything not mentioned on the form must be in perfect condition.
Why Buyers Must Carry Out Their Own Inspections
Read the disclosure form carefully, inspect the property thoroughly and return for additional viewings if necessary. Look closely at visible damage, signs of water ingress and anything that appears to have been repaired or covered up.
For an expensive property or one where concerns have been identified, Harry recommends considering a professional inspection. Although this comes at an additional cost, a qualified inspector may identify problems that the buyer and even the seller have missed.
What Does the Voetstoots Clause Mean?
Voetstoots generally means purchasing a property in its existing condition. Harry explains that this clause can protect sellers against certain complaints about defects that become apparent after the sale.
It does not, however, give a seller permission to deliberately conceal a defect they know about. The disclosure process and the circumstances surrounding any hidden defect remain important.
Buyers should therefore understand both the disclosure form and the terms of their purchase agreement before signing.
Should You Negotiate Repairs or a Lower Purchase Price?
If the disclosure or your inspection reveals problems, you need to decide what you are prepared to accept. Some buyers may prefer a reduction in the purchase price so they can arrange the repairs themselves. Others may require the seller to complete specific work.
Harry points out that a seller arranging repairs may choose the cheapest option. Where the buyer wants greater control over how work is done, negotiating an agreed price adjustment and handling the repairs themselves may be worth considering.
Whichever approach is chosen, the parties need to agree on the details before the sale proceeds.
Put Every Agreement in the Offer to Purchase
Promises and assumptions are not enough. If the seller must repair particular defects, or the purchase price has been adjusted because the buyer will attend to them, those arrangements should be clearly recorded in the offer to purchase.
The conditions should identify the agreed work, who is responsible and when any obligations must be fulfilled. Harry advises buyers to address these matters before transfer rather than rely on an understanding that something will be fixed later.
Three Key Takeaways Before You Buy
First, read the mandatory disclosure form and ask questions about every item you do not understand.
Second, inspect the property properly. Arrange further viewings or a professional inspection if you are unsure about its condition.
Third, make sure any repairs, allowances or other agreements concerning defects form part of the written offer to purchase. Do not assume that the seller will fix something unless it is agreed in the contract.
What Is The Property Perspective?
The Property Perspective is Etchells & Young's weekly property segment on 919 FM.
Each episode explores a different aspect of property - from rentals and property management to buying, selling, legislation, sectional title living and the everyday questions property owners and tenants face.
Follow the series as we unpack more of the issues that matter to Johannesburg property owners, buyers, sellers, landlords and tenants.
Buying or Selling a Property?
Understanding a property's condition and the terms of your offer to purchase can help prevent costly surprises later on.
Speak to the Etchells & Young team for professional guidance when buying or selling in Johannesburg's northern suburbs.
