It is unfortunately a common occurrence when dealing with a property transaction that certain defects are discovered after the agreement of sale has been signed. This series will discuss the legal principles involved when considering defects. However, always contact your conveyancer for situation-specific advice.
Voetstoots Clause
The Voetstoots clause stipulates that the Purchaser buys the property from the Seller as it is and as a result the Purchaser indemnifies the Seller against claims for damages in respect of defects on the property, whether latent or patent defects.
If a property is offered and sold in the condition as it stands (‘voetstoots’), it means that the seller does not guarantee the absence of latent defects.
The purchaser will generally bear the risk and costs of repairing the latent defects unless the purchaser can prove the seller had prior knowledge of the latent defects and fraudulently omitted to disclose it before concluding the agreement.
Therefore, in light of the above, the Seller must disclose latent defects that he/she is aware of.