Buying a property is a big decision. Buying an investment property so much more. Therefore, it’s important to ensure that there are no major defects in your prospective purchase.
When things do go wrong the buyer will most likely end up having to cover the cost for remedial and/or legal action. The Consumer Protection Act (CPA) will only apply if sellers regularly sell property or continually market themselves as sellers.
Under the Prescription Act, a purchaser has a period of three years from the date of becoming aware of the defect to hold the seller liable. On the other hand, if the CPA applies, the purchaser is granted a minimum of six months.
Where the goods fail to meet the standards of the CPA, the purchaser has the right to return the goods to the supplier and demand either a repair or replacement, or the return of the purchase price. For instance, the CPA explicitly states that goods must “be useable and durable for a reasonable period of time” (six months). Hence, it may be in certain circumstances, especially with an immovable property, that a reasonable amount of time will be substantially in excess of six months. Similarly, where the seller’s false, misleading or deceptive representations induced the purchaser to conclude the sale, the period may again be longer.
Since the CPA does not apply to most property sales, most sellers will receive substantial protection against claims based on defects due to the existence of a “Voetstoots” clause. This means that where the seller was unaware of the defect, the seller is not liable to the purchaser, which is where your home inspector comes in.
Under common law, once a buyer is aware of a problem and it is evident that the fault existed in the property at the time of purchase, he may recover any damages he has suffered, including the cost of having to repair the defect himself.
In addition, it is obviously important that the inspector is independent and not linked with any Estate Agent or Seller.
The Importance of Independent Property Inspections
