Is Voetstoots still valid in South Africa?
Is Voetstoots still valid in South Africa?
Voetstoots Case Law in South Africa It has been ruled by our courts that a seller cannot rely on the voetstoots clause if the seller was aware of a latent defect and deliberately concealed or failed to disclose it with the intention to defraud the purchaser.
Are Voetstoots clauses valid?
Can a “voetstoots” clause still be valid under the new Consumer Protection Act? The answer is YES, unless you are a developer, investor or speculator.
What is the effect of a Voetstoots clause in a contract of sale?
The effect of having a Voetstoots clause in sale of property agreements is that there can be no claims against a seller for defects (whether patent or latent), after the purchaser agrees to buy the property as it appears at the time of the sale.
Can property be sold Voetstoots?
If a property is sold “voetstoots” the only responsibility of the seller is to disclose any latent defects of which the seller is aware. But the law states that a “voetstoots” clause does not protect the seller against claims for latent defects that the seller knew about and deliberately concealed from the purchaser.
What does the voetstoots clause mean in South Africa?
In South African law the voetstoots clause is a standard term inserted into real estate – and many other – sale agreements. It says that the purchaser is buying the property or other item as it stands, whether or not it has patent or latent defects.
Can a voetstoots be included in a sale agreement?
However, should a private person sell a property to another private individual, a voetstoots clause may in fact be included in the sale agreement because the sale is not part of the seller’s usual course of business. According to section 48 of the CPA, a voetstoots contract or clause is considered unreasonable, unjust and unfair.
When does the CPA replace the voetstoots clause?
Many people are under the impression that the Consumer Protection Act (CPA) has replaced the voetstoots clause when a property has been sold.
What was the Consumer Protection Act of 2008?
The Consumer Protection Act 68 of 2008 has changed the common law insofar as voetstoots provisions are concerned in certain instances. The Consumer Protection Act (CPA) promotes a fair, accessible and sustainable marketplace for consumer products and services, including the buying or selling of immovable property.