13 Sep

PROPERTY CONDITION REPORT – RECENT UPDATES (MANDATORY DISCLOSURES)

We have received a number of questions, in response to our last post. Please familiarise yourselves with the Act once again. We have highlighted the vital parts:

Section 67 of the Act states the following:

(1) A property practitioner must —

(a) not accept a mandate unless the seller or lessor of the property has provided him or her with a fully completed and signed mandatory disclosure on the prescribed form; and

(b) provide a copy of the completed mandatory disclosure form to a prospective purchaser or lessee who intends to make an offer for the purchase or lease of a property.

(2) The completed mandatory disclosure form signed by all relevant parties must be attached to any agreement for the sale or lease of a
property, and forms an integral part of that agreement, but if such a disclosure form was not completed, signed or attached, the agreement must be interpreted as if no defects or deficiencies of the property were disclosed to the purchaser.

To therefore answer the questions, we have received (and applying the PPRA’s communication):

May an agent complete this on the seller’s/landlord’s behalf?

Yes. But the SELLER/LANDLORD must still sign it off. It is a declaration by him/her, not the agent.

Is there no way around this at all?

You could apply for exemption under Section 4 of the Act, but this is not practical at all as it would have to be for each and every such occasion.

May we amend the prescribed Mandatory Disclosure at all?

No. It must be used in its prescribed form. Do not change anything.