Mandatory Disclosure Document

 Understanding the Mandatory Disclosure Document When Selling a Property in South Africa

If you’re planning to sell your property, there’s one critical step you cannot skip — completing the Mandatory Disclosure Document. In terms of Section 67 of the Property Practitioners Act, this document must be completed by the seller before an estate agent can accept a mandate or begin marketing the property.

 What is the Mandatory Disclosure Document?

The Mandatory Disclosure Document — also known as the Immovable Property Condition Report — is a legal document that sets out the known (patent) and unknown (latent) defects of a property. It includes everything from damp issues and roof leaks to faulty wiring or structural concerns.

Patent defects are those visible upon a reasonable inspection (like a cracked wall), while latent defects are hidden (like a leak inside a ceiling or behind tiles).

Note: Completing this document is not a guarantee or warranty from the seller or the agent — it is purely a disclosure of facts to ensure honesty and transparency.

 Why Is the Mandatory Disclosure Document So Important in a Property Sale?

1. It protects the buyer
   Buyers are fully informed about the condition of the property before signing an offer to purchase.
2. It protects the seller and agent
   If all known issues are disclosed in writing, sellers and their agents are protected from legal claims of nondisclosure after the sale.
3. It ensures transparency
   The Mandatory Disclosure Document builds trust between all parties, promoting ethical practices in the real estate industry.
4. It’s legally required
   Without a completed Mandatory Disclosure Document:
   • The sale agreement is not valid
   • The agent cannot market the property
   • The transaction may fall through or be challenged legally

They recommend that both sellers and buyers take the Mandatory Disclosure Document seriously and perform thorough home inspections to support the integrity of the sale.

 What Should Sellers Do?

• Complete the Mandatory Disclosure Document honestly and accurately
• Disclose all known defects, even if minor
• Provide the completed form before any buyer signs an Offer to Purchase
• Consider allowing an independent inspection to support the document

 And Buyers?

• Always request and read the Mandatory Disclosure Document before signing anything
• Inspect the property in person
• Ask questions if anything is unclear or if new concerns arise

 Need Help with the Mandatory Disclosure Document?

As a PPRA-registered property professional, I’m here to guide you through the process and ensure you meet all legal requirements with peace of mind.

Caren Pretorius – Real Estate Services
083 415 4456
We make Real Estate a Breeze
Registered with the PPRA