In South Africa, certain disclosures must be made to the buyer when selling a property. Here is a list of 10 key items that should typically be disclosed in a sale agreement:
1. Property defects
Disclose any known defects or issues with the property, such as structural problems, leaks, pest infestations, electrical or plumbing issues, or any conditions that may affect the property’s value or safety. This includes structural problems, plumbing or electrical issues, and other significant deficiencies that may affect the property’s value or safety.
2. Boundaries and encroachments
Disclose any encroachments or boundary disputes, including if any part of the property extends onto neighbouring properties or if any encumbrances or servitudes are affecting the property.
3. Zoning and land use restrictions
Disclose the current zoning designation of the property and any applicable land use restrictions or limitations, such as building restrictions, environmental regulations, or special zoning conditions that may impact the buyer’s intended use of the property.
4. Title and ownership
Disclose any known defects in the property’s title, such as liens, easements, servitudes, or other encumbrances. The seller should provide accurate and up-to-date information regarding their property ownership and confirm that they have the legal right to sell it. They must disclose if there are any disputes, competing claims, or legal restrictions on the title.
5. Rights and Restrictions
Disclose any rights or restrictions, such as servitudes, rights of way, or other third-party interests affecting the property.
6. Compliance with regulations
Disclose whether the property complies with applicable building regulations, by-laws, or permits. This includes disclosing any alterations or additions made to the property and whether the necessary approvals or certificates were obtained.
7. Material latent defects
In South Africa, sellers are required to disclose any material latent defects that are not visible or reasonably discoverable by the buyer upon inspection. Material latent defects refer to defects that significantly affect the property’s value or render it unfit for its intended purpose.
8. Homeowners Association (HOA) or Body Corporate rules.
If the property is subject to an HOA or a Body Corporate, sellers should disclose this information. It is important to provide details about the HOA’s rules, regulations, fees, and any outstanding disputes or non-compliance issues.
9. Environmental considerations.
Sellers should disclose any known environmental hazards or contamination on or near the property. This may include information about soil contamination, groundwater pollution, or other environmental risks
10. Pending legal actions or disputes
Sellers must disclose any pending legal actions or disputes related to the property. This includes lawsuits, arbitration proceedings, or other legal matters affecting the property’s value or ownership.
Sellers need to provide accurate and complete disclosures to potential buyers, as failure to disclose material information can lead to legal issues and financial liabilities.
It is always advisable for sellers to seek legal advice and consult with a qualified professional to ensure compliance with the applicable laws and regulations regarding disclosures in sale agreements.
Lize Vermeulen
June 2023
lize@lombardlaw.co.za
