Page 21 - Nexia SAB&T Property & Tax Guide 2022

is in addition to the cooling off period in terms of Section 29A of the Alienation of Land
Amendment Act, which applies where the value of the property is less than R250 000, or such
higher amount as the Minister may prescribe in order to counter the effect of inflation, and
the purchaser is an individual).
Disclosure and Information – Section 22–28
Consumers (purchasers/tenants where applicable) are entitled to information in plain and
under standable language. Purchasers must understand exactly what they are buying. The
purchaser has the right to receive express notice of any term in an agreement which limits
the risk or liability of the provider, or of any term which constitutes an assumption of risk or
liability by the consumer.
Certain information is required to be disclosed by intermediaries, agents and/or estate
agents in terms of Regulation 9, such as their full names, identity number, a description of
the exact service to be provided and fees to be earned.
Consumer agreements – Sections 48–52
Unfair, unreasonable or unjust contract terms are not allowed in deeds of sale. These
agreements will be scrutinised – the meaning and effect of all applicable terms and conditions
of the agreement are required to be explained, and no terms or conditions that are deemed
unfair for the consumer will be able to be inserted.
Right to fair value, good quality and safety – Sections 53–60
A. Right to fair value
Sale prices could be scrutinised for reasonableness. The price should always be displayed
when the property is being advertised for sale.
B. Right to good quality and safety – Sections 55–56
Section 55(2): Except to the extent contemplated in subsection (6), every consumer has
a right to receive goods that are reasonably suitable for the purposes for which they are
generally intended, are of good quality, in good working order and free of any defects, and
will be useable and durable for a reasonable period of time, having regard to the use to which
they would normally be put, and to all the surrounding circumstances of their supply. In other
words, where the CPA applies, it would seem that the purchaser has a right to return goods
(to require the seller to take re-transfer of the property) if any of the requirements listed in the
section are not met. Where the sale agreement expressly lists any patent (visible) defects,
latent (unknown) defects, or specifies the exact condition of the property, the seller will most
likely be protected. Such a clause must be expressly accepted by the purchaser. The purchaser
must have expressly agreed to accept the goods (property) in that condition or knowingly
acted in a manner consistent with accepting the goods in that condition [Section 55(6)].
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