What’s New With The Property Act?
The Property Practitioners Act (PPA), which went into effect on February 1, 2022, helps buyers make smart choices.
It is now required by law for sellers to write down any problems they know about with a property. This has been a good idea for a long time, but it is now the law.
This new act ensures you have all the data before making one of your biggest investments.
All parties must sign and attach a property defect disclosure form to a sale or lease agreement. This establishes a legal requirement of fairness on the agent or “property practitioner,” a phrase used to designate estate agents, commercial property brokers, bond originators, lawyers, auctioneers, property developers, and other property industry experts.
Meaning?
Homeowners who want to sell or rent out their property must declare any and all concerns, both obvious and hidden, under the PPA.
Visible faults include things like cracks, nicks, chips, broken tiles, decaying wood, and missing windows or doors.
Invisible problems include things like shaky walls, rising dampness, and leaking roofs.
An independent home inspector’s report can be utilized as a disclosure document by the agent selling the residence. Buyers can sue sellers who conceal problems for false advertising.
Professional home inspections give buyers peace of mind and boost buyer, seller, and agent trust.
Commission and fee recipients must also be tax and BBBEE compliant and in possession of a current Fidelity Fund Certificate (FFC) issued by the new Property Practitioners Regulatory Authority (PPRA) under the Act.
Buyers, sellers, tenants, and landlords may rest easy knowing their agent has the necessary skills thanks to this.
Pitfalls of the OTP signing
When signing an OTP, be sure to read the disclosure form first. The seller and the real estate agent’s signatures on this document must be included in the contract being shown to potential purchasers.
You can have an inspection done before finalizing the sale if there is anything on the papers that makes you uncomfortable. The real estate agent taking the oath of office must ensure that all relevant information is included in the form or face legal consequences.
There will be fewer cases of consumers losing money to unregistered brokers because of this new law that was passed to protect them in the real estate market. Potential purchasers will be more educated as a result of the PPA.