Page 22 - Nexia SAB&T Property & Tax Guide 2022

Right to return defective goods – Section 56(2)
Within six months after the delivery of any goods to a consumer, the consumer may return the
goods to the supplier, without penalty and at the supplier’s risk and expense, if the goods fail
to satisfy the requirements and standards contemplated in Section 55.
Where the CPA applies, the purchaser has the right to return the goods to the seller –without
penalty and at the seller’s risk and expense – within six months of delivery (registration of
transfer at the deeds office). The purchaser has the choice as to whether the seller will be
required to refund the full purchase price or repair the ‘goods” (where applicable).
Effect of the CPA on the Voetstoots clause
There are conflicting views on the likely effect of the CPA on the traditional voetstoots clause.
Certainly, where the Act applies, traditional voetstoots clauses that breach the consumer’s
rights as per Section 55 of the Act will no longer be applicable. Property speculators,
developers, builders, estate agents, and attorneys involved in the drafting of the contract of
sale will be required to comply with Sections 55–56. However it is also likely that the exception
in Section 55(6) will relate to the voetstoots clause in that when the purchaser signs the deed
of sale, and (s)he acknowledges that (s)he has been expressly informed that the property
is sold in the specific condition that (s)he sees it, and which condition is listed in detail in
the contract itself, and is acquainted with the property’s condition, nature and extent, land
use planning and building plan approval, accepts it as is, then the exception should apply.
As per Section 49 of the CPA, such provision must have been drawn to the attention of the
consumer and in a conspicuous manner, that is likely to attract the attention of an ordinarily
alert consumer, having regard to the circumstances, and before the earlier of the time at which
the consumer enters into the transaction or agreement, or is required or expected to offer
consideration for the transaction or agreement.

LEASES AND LANDLORDS
‘Lease’ is not defined in the CPA, however, ‘services’ is defined as including the provision of
accommodation or sustenance, access to or use of any premises or other property in terms of
a rental. ‘Rental’ means an agreement for consideration in the ordinary course of business, in
terms of which temporary possession of any premises or other property is delivered to or at the
direction of the consumer, or the right to use any premises or other property is granted to or at
the direction of the consumer, excluding a lease within the meaning of the National Credit Act.
Landlord as Supplier/Tenant as Consumer:
◆ The Act applies where the landlord is in the business of letting properties, and the
tenant meets the criteria of ‘consumer’ – being an individual, or juristic body whose
turnover or asset value is less than R2 million.
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