The Property Practitioners Act (PPA) is in full effect, replacing the outdated 1976 Estate agency affairs act 112. Martin Broughman-Cook, explains what this act means and how it can protect you when either buying or selling a property.
The new PPA includes a host of positive changes that will protect and benefit consumers as well as the property industry as a whole. A 'property practitioner' will now not only include estate agents, but bond originators, home inspectors, as well as other professionals within the property industry.
READ: Seller and Landlord advice on compulsory disclosure rules in new Property Practitioner Act
While a "disclosure form" detailing the full state of a property has been standard practice for some years since the Consumer Protection Act (2011), it will now be law under the new PPA for a property disclosure signed by parties to be included in the Offer to Purchase.
In addition, no mandate may be accepted by an estate agent without a comprehensive property defects disclosure form. If no disclosure form is signed and attached, the PPA provides that the agreement must be interpreted as though no defects or deficiencies of the property were disclosed to the purchaser.
What does this mean?
While a professional Home Inspection is not mandatory, full disclosure of all known defects must be undertaken. This places a lot of responsibility on both the seller and the estate agent to have a good understanding of all aspects of a home in order to disclose all defects in detail. A Home Inspection done by an independent Property Inspector makes good financial and professional sense. Property Inspection Reports can be used as a disclosure document, highlighting the current state of the property at the time of inspection.
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Buyers should not just accept a disclosure form or tick list. They should question information disclosed on the form, ask by whom and when the form was completed. Double check any information that does not make sense or is incomplete. For example: Disclosing that there is Mould is not enough – the disclosure should tell you where it can be found, how long it has been there and what is the cause.
“Our comprehensive report covers all areas and components to the home” says Martin Brougham-Cook of PMS inspections. “Our clients are provided with a detailed report of our findings which includes suggested remedial action needed for repairs, maintenance as well as defects,”
READ: These 10 concerns come up time and time again when buying a home
While the Certificates of Compliance (CoC) are a legal requirement, they are not comprehensive. A plumbing CoC for example, does not include leak detection or moisture issues, whereas a property inspection does.
"Buying a home is one of the biggest financial investments most people make, and a professional home inspection is a fraction of the cost (ranging between R2500-R5500 for the average home depending on size),” says Broughman-Cook. “Our thorough Home Inspection report not only highlight the current state of the property, but also provide suggested repairs and maintenance requirements, which will save you money in the long run."
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