South African estate agents are warned to ensure there are no deceptive phrases in sales documents as stated in the Consumer Protection Act (CPA).
He adds that where promises are not kept or where it is clear the buyer did not understand the contract, immediate cancellation of it will be possible with total compensation to the misled party.
This is according to the Institute of Estate Agents that explains that the CPA protects the buyer against misleading verbal statements by any person acting on behalf of the seller.
It is particularly insistent that people with limited education or speaking another language should have all agreements carefully explained to them.
Anton du Plessis, chief executive officer of Vineyard Estates, says a recent High Court case (Guthrie and Another vs. Etango Game Lodge and Another) shows just how careful sellers must be in making promises they may not be able to keep – whether this is done in the official sales document or the property’s advertising.
Etango’s promotional literature apparently promised that among the perks that they offer those who bought land from them (and paid their levies) would be a new clubhouse and wellness centre with a gymnasium, a squash court and a pool, an electric connection point on their property, and a six seater game drive viewing vehicle for the owners’ use.
They also undertook to see that the game reserve was fully stocked, that it had certain specified game and that only cull-hunting would be allowed.
After completing their house on their newly purchased erf, the Guthries found that a) no clubhouse was being built, b) game was not plentiful and was being captured and sold, c) there was no game drive vehicle, and d) there was no electric supply point to their home.
On taking these matters to court, the Guthries obtained satisfaction on every count except that they could not get a court order authorising an immediate start on the clubhouse as no date for this had been set in the agreement.
The electrical connection was authorised immediately as was the delivery of the game viewing vehicle within 30 days and all game killing or selling halted.
Etango argued that, as no body corporate had yet been formed and disputes had to go through this body, the Guthries had acted unconstitutionally.
However, the court pointed out that section 36(1) of the Sectional Title Act rules that as soon as any person other than the owner acquires a unit in a sectional title scheme, a body corporate comprising the developer and the new owner will automatically be deemed to have come into existence and all subsequent owners become members.
Du Plessis says that in South Africa today property selling efforts will have to be much disciplined and vague statements and promises could now become ammunition for buyers.
He adds that where promises are not kept or where it is clear the buyer did not understand the contract, immediate cancellation of it will be possible with total compensation to the misled party.
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