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Essentials of an Immovable Property Condition Report

Category Property Tips

It is specifically mandated by the Property Practitioners Act (PPA). Section 67 of the Act stipulates that a "disclosure form" (generally referred to as a "Immovable Property Condition Report") must be completed and signed  by the seller or lessor of a property before a mandate may be accepted by a real estate professional.

The PPRA has provided a prescribed format which must be used to ensure compliance with the provisions of the Act. It must include details about the property's condition, disclosing all known defects and issues, and confirm whether building plans are in order.

A copy must be given to any prospective lessee and purchaser who intends to make an offer on the property. The report must also be attached to any sale or lease agreement, duly signed by all parties, and it forms an integral part of the agreement. The report must be retained for five years.

While the absence of this report does not nullify a sale agreement, non-compliance can have serious consequences. STBB Attorneys warn that if the Disclosure Report is not completed, signed, or attached, the agreement will be interpreted as if no defects were disclosed.

The potential consequences of non-compliance could be significant as articulated in recent case law with the decision upheld on appeal in Gortzen and Another v Moolman. The case highlights that the "voetstoots" clause does not protect sellers who deliberately conceal known property defects.

The court ruled against sellers who had masked extensive damp issues, affirming the legal necessity of transparent disclosure, and the potential cost implications. In this case the seller was ordered to pay the sum of R244,855 to the purchasers to cover the cost to fix the damp problems.

(Read more about the case here:

https://iol.co.za/pretoria-news/news/2024-03-07-remaining-mum-over-selling-a-home-with-defects-has-a-price/)

The Immovable Property Condition Report is a foundational element of a secure and legally sound property transaction. For both buyers and sellers, as well as landlords and tenants, it provides essential information, promotes transparency, and significantly mitigates the risk of future disputes.

As we head into the second half of the year, we continue seeing the Cape property market outperform the rest of the country in terms of demand, and price and rental growth. The market remains active with good opportunities for sellers.

Every month, Seeff helps thousands of clients opening doors to new property aspirations. If you are thinking about selling, or would like to assess what your property might sell for in the current market, please do not hesitate to contact me.

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Author: Gina Meintjes

Submitted 10 Jul 25 / Views 20