The importance of condition reports and the "voetstoots" clause
Category RealADVICE
"Property is the most significant investment most people will make in their lives, which is why it's important to understand and navigate the process, including the condition report and its relation to the voetstoots clause." says Gerhard Kotzé, CEO of the RealNet property group.
"The last thing anyone wants to experience after finally putting pen to paper and moving into their new home is buyer's remorse. And, likewise, as a seller, once the transaction is all said and done, you don't want to deal with a buyer accusing you of concealing defects, and the potential legal repercussions that come with that."
"The condition report is now legally required, and because it protects both the seller and buyer, and can have a major impact on the transaction, it shouldn't be dismissed as just another document you need to sift through."
"The condition report is a detailed assessment of a property's physical state. It outlines any existing defects or issues, and it acts as a crucial tool for both parties, providing transparency, and setting clear expectations."
"The condition report typically includes information about the foundations, structural, electrical, and plumbing systems, and the condition of things like the roof and swimming pool. Issues with any of these fixtures can become costly to fix, and buyers can use this report to make informed decisions, so sellers should ensure they include any relevant information about the property's condition."
The two types of defects are:
* Latent defects: Faults that won't easily be revealed by a reasonable inspection of the property.
* Patent defects: Flaws that aren't hidden and can easily be identified by a reasonable inspection.
"The voetstoots clause, on the other hand, is a legal provision that absolves the seller from liability for any concealed defects affecting the property that are difficult to discern. This clause is commonly included in South African property sales agreements, so it's important for both parties to understand its implications."
"The clause basically means that the buyer purchases the property in its current condition, defects and all, whether visible or hidden. Once the sale is completed, the seller is generally not liable for any issues that arise, unless they were aware of these problems and deliberately concealed them which is why an accompanying condition report is so important."
"This is why, as a buyer it's always important to review the condition report carefully, and hire a trusted property inspector before making an offer to purchase.
Author: RealNet
