In terms of Section 67 of the PPA, property practitioners are required to obtain a completed disclosure form from a seller of the property, before they are allowed to accept a mandate to work on that property.
The disclosure form is prescribed by Regulation 36 and must be used to disclose all defects in the property that the seller is aware of. The seller is required to confirm whether they are aware of any defects or deficiencies relating to the plumbing – or electrical systems, air conditioning, boundary line disputes and structural defects of the property, before the transaction is concluded.
The fully completed and signed mandatory disclosure form must be provided to all prospective purchasers before they make an offer. On the acceptance of an offer, the form must be signed by all parties and attached to any sale/lease agreement, since the Act regards it as an integral part of that agreement.
If a practitioner has not complied with this statutory obligation, the agreement will be interpreted as if no defects or deficiencies of the property were disclosed. The non-complying practitioner accepts the risk that they may be held personally liable by the consumer for non-compliance. According to Regulation 38, a breach of this nature would constitute a minor contravention of the Act and carry a penalty of R15 000.00.