If you’ve found a house, you’re probably eager to sign the purchase agreement and move in. At the same time, the estate agent selling you the property is probably pushing you to sign disclosure documents, which may contain a Voetstoots clause, to tie you up in legal jargon.
Unless you are a property expert or structural engineer, you can’t truly estimate the condition of a property.
These documents might look simple enough but, once signed, they mean you will have no recourse if the house has any serious defects.
Think about it – you buy the house, probably with a large bond, and then discover serious structural flaws that result in thousands of Rands worth of repair work, all from your own account because you signed documents that state that you were happy with the condition of the house at the time of purchase.
Whether the seller deliberately hid the defects from you or not, with phrases like ‘in the utmost good faith’, ‘to the best of my knowledge’ and ‘as far 'as I am aware this is a true and honest appraisal of the property as I know it’, you are stuck with the problem if you sign. Such phrases are typical of all disclosure documents and often mislead the buyer.
What do the experts say?
For Eric Bell of Inspect-A-Home, situations like these happen much too often. He says they have assisted hundreds of disgruntled buyers throughout the country who have been caught by these documents.
In one such case, he says a client bought a house for R2.2 million. Shortly after moving in, he decided to have the gutters replaced, only to discover that the roof was badly damaged. After an inspection by Inspect-A-Home, the house was deemed unsafe to live in and the client was advised to move immediately as the roof was about to collapse.
When the client contacted the estate agent to report the problem, he was told that there would be no recourse as disclosure documents were signed and there was no report of the defect made within seven days of moving in.
This was the same agent who told the client that a pre-sale house inspection was unnecessary as the previous owner had lived in the house for over 16 years with no complaints. The estimated damage to the property was over R500 000 and the client had to move into a hotel while the entire roof was replaced, all at his own cost.
What should you do?
Before you sign any disclosure documents, ask yourself the following questions:
Do I have to sign this?
Many new property owners are told that they must sign disclosure documents or accept the Voetstoots clause before a sale can be completed. Not so - by law, you are not required to sign or accept these documents.
If you do and end up with a house that needs unexpected repair work, you will have no recourse with the estate agent. Remember, these documents are designed to protect the estate agent and seller – not the buyer.
Do I really know enough about this property to sign?
Unless you are a property expert or structural engineer, you can’t truly estimate the condition of a property.
According to Bell, disclosure documents ask buyers to sign off on a number of key areas, including roofing, geyser condition, wiring, and damp – all latent defects that only an expert will be able to assess.
He says more often than not, it is the wife who is asked these questions as the husband is at work and most wives will not know the condition of the roof or structural issues, so they answer that they are not aware.
Bell says these documents are then waved in front of the buyer claiming that full disclosure by the seller has been made. He says this is misleading and catches most buyers unaware.
What should I do?
Ask an expert. You take a car for an inspection before purchase, why not do the same for a house? Investing in the services of a reputable building inspector should be standard practice when buying a property.
While some might feel that an inspection is an extra spend, the cost of a house with defects far outweighs that of the inspection. The cost of an inspection is nullified and actually saves you money. Inspections should ideally take place before any sales agreement is signed, but inspections are also completed after the sale has been concluded to good effect. Note that all inspections should be undertaken by an accredited inspector.
Remember, a newly painted house is not necessarily a sound house. By signing disclosure documents, you sign away your right to damage claims, making any required repairs your problem.
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