New consumer-focused law protects home buyers

A new consumer-focused property law will change the obligations of property practitioners to ensure consumers are protected.

Property Practitioners Act

Estate agents, now called property practitioners, who contravene the Act will be liable for a fine or imprisonment of up to 10 years.

Buying or renting a home is one of the biggest transactions consumers will likely enter into and, therefore, it is important for legislation to protect them from losing their hard-earned money by having to, for example, fix undisclosed defects.

The Property Practitioners Act came into operation on 1 February with the aim to:

• Regulate property practitioners.
• Ensure the continuation of the Estate Agency Affairs Board as the Property Practitioners Regulatory Authority.
• Provide for the appointments of the members of the board, the CEO and other staff members.
• Ensure transformation of the property sector.
• Establish the transformation fund and research centre.
• Ensure compliance with and enforcement of the provisions of the Act.
• Ensure the continuation of the Estate Agents Fidelity Fund as the Property Practitioners Fidelity Fund.
• Protect consumers.
• Repeal the Estate Agency Affairs Act.

The Act makes provision for consumer protection in Sections 67, 68 and 69 by making a disclosure form mandatory, stipulating what must be in agreements and making it compulsory for the authority to educate and inform consumers.

According to Section 67, a property practitioner is not allowed to accept a mandate unless the seller of a property or owner of a property to let has provided a fully completed and signed mandatory disclosure in the prescribed form.

According to the draft regulations, the owner must disclose if she is or is not aware of, among others:

• Defects in the roof.
• Defects in the electrical system.
• Defects in the plumbing system, including the swimming pool.
• Defects in the heating and air conditioning systems.
• Defects in the septic or other sanitary disposal systems.
• Defects in the property and/or the basement or foundations, including cracks, seepage and bulges or flooding, dampness or wet walls.

– inao@citizen.co.za

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