September 2010 - Property: New Laws You Need to Know!
The CPA (Consumer Protection Act), which is due to come into operation during October, will fundamentally change the rights of property purchasers in South Africa. Prepare yourself now!
First off, note that the CPA will not apply to every property transaction -
It is unlikely to apply to property sales in the average one-off "private sale" situation, - it is aimed more at "commercial" sales, such as those by developers, speculators, and other property dealers (the basic test being whether you sell property or property services "in the ordinary course of business").
For estate agents however, the CPA will apply both to their general marketing practices, and to all mandates they take from sellers and buyers (even those in "non-commercial" transactions). Agents, as links in the "supply chain", could also risk liability for the actions of developers, speculators, builders etc.
First off, note that the CPA will not apply to every property transaction -
It is unlikely to apply to property sales in the average one-off "private sale" situation, - it is aimed more at "commercial" sales, such as those by developers, speculators, and other property dealers (the basic test being whether you sell property or property services "in the ordinary course of business").
For estate agents however, the CPA will apply both to their general marketing practices, and to all mandates they take from sellers and buyers (even those in "non-commercial" transactions). Agents, as links in the "supply chain", could also risk liability for the actions of developers, speculators, builders etc.