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Disclosure Agreement (Real Estate)

Disclosure Agreement (Real Estate) Template for South Africa

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Key Requirements PROMPT example:

Disclosure Agreement (Real Estate)

"I need a Real Estate Disclosure Agreement for a residential property in Cape Town, South Africa, that's part of a heritage site and includes specific disclosures about historical features and renovation restrictions, to be completed by March 2025."

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Document background
The Real Estate Disclosure Agreement (Real Estate) is a mandatory document in South African property transactions, required under the Property Practitioners Act 22 of 2019 and supported by consumer protection legislation. This document is used when transferring residential or commercial property ownership, requiring sellers to disclose all known defects and material facts about the property. It protects both parties by ensuring transparency and reducing the risk of future disputes. The agreement must be completed before concluding a sale agreement and typically includes detailed information about the property's condition, past repairs, compliance certificates, and any issues that could affect the property's value or the buyer's decision to purchase. It forms a crucial part of the property transaction documentation in South Africa and can be used as evidence in legal proceedings if disputes arise.
Suggested Sections

1. Parties: Identification of the seller, purchaser, and any agents involved in the transaction

2. Background: Context of the disclosure agreement and property transaction

3. Definitions: Key terms used throughout the agreement

4. Property Description: Detailed description of the property including physical address, erf number, and size

5. Seller's Knowledge and Disclosure: Seller's declaration of knowledge regarding property conditions and confirmation of truthful disclosure

6. Property Condition Disclosures: Comprehensive disclosure of known defects, repairs, and material facts about the property's condition

7. Statutory Compliance: Declarations regarding compliance with building regulations, zoning laws, and other statutory requirements

8. Known Defects: Specific listing of all known defects, past repairs, and ongoing issues

9. Utilities and Services: Status and condition of electrical, plumbing, heating, and other utility systems

10. Acknowledgment: Buyer's acknowledgment of receiving and understanding the disclosures

11. Disclaimer: Limitations of the disclosure and seller's liability

12. Signatures: Execution section for all parties to sign and date the agreement

Optional Sections

1. Environmental Matters: Disclosures about environmental issues like contamination, wetlands, or protected species - required when relevant environmental factors exist

2. Body Corporate/HOA Information: Details about body corporate rules, levies, and governance - required for sectional title properties

3. Heritage Status: Information about heritage protection status and restrictions - required for heritage properties

4. Occupancy Status: Details about current tenants or occupants - required if property is currently leased

5. Recent Renovations: Information about recent modifications or improvements - required if property has been renovated in past 5 years

6. Insurance Claims History: Disclosure of past insurance claims - required if there have been significant claims

7. Boundary Disputes: Information about any current or past boundary disputes - required if applicable

Suggested Schedules

1. Schedule A - Property Condition Report: Detailed report on the current condition of all aspects of the property

2. Schedule B - Defects List: Itemized list of all known defects with descriptions and photographs

3. Schedule C - Compliance Certificates: Copies of all relevant compliance certificates (electrical, gas, electric fence, etc.)

4. Schedule D - Property Plans: Approved building plans and site diagrams

5. Schedule E - Maintenance Records: History of maintenance work and repairs carried out

6. Appendix 1 - Photographs: Recent photographs documenting property condition and specific issues

7. Appendix 2 - Expert Reports: Any specialist reports obtained (structural, geological, pest, etc.)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Property
Seller
Purchaser
Property Practitioner
Effective Date
Transfer Date
Material Defect
Latent Defect
Patent Defect
Compliance Certificates
Property Description
Disclosure Statement
Due Diligence
Fixtures and Fittings
Improvements
Maintenance
Building Plans
Zoning Requirements
Municipal Requirements
Body Corporate
Common Property
Exclusive Use Areas
Occupancy Certificate
Property Condition
Repair
Service Providers
Utilities
Building Regulations
Applicable Laws
Expert Report
Insurance Claim
Property Inspector
Signature Date
Supporting Documentation
Title Deed
Transfer Documents
Warranties
Clauses
Property Description
Seller Representations
Disclosure Obligations
Property Condition
Statutory Compliance
Building Regulations
Zoning Compliance
Environmental Matters
Structural Elements
Electrical Systems
Plumbing Systems
Roof Condition
Foundation Status
Pest Control
Insurance History
Previous Repairs
Maintenance Records
Title Conditions
Municipal Services
Boundary Declarations
Safety Compliance
Heritage Status
Body Corporate Matters
Occupancy Status
Building Alterations
Property Access
Documentation Requirements
Inspection Rights
Warranties
Liability
Dispute Resolution
Governing Law
Severability
Amendment
Entire Agreement
Relevant Industries

Real Estate

Legal Services

Property Development

Construction

Property Management

Financial Services

Insurance

Conveyancing

Relevant Teams

Legal

Real Estate

Property Management

Compliance

Risk Management

Sales

Conveyancing

Property Development

Due Diligence

Relevant Roles

Property Lawyer

Real Estate Agent

Conveyancing Attorney

Property Practitioner

Legal Counsel

Property Manager

Compliance Officer

Real Estate Broker

Property Inspector

Sales Manager

Real Estate Director

Property Development Manager

Legal Risk Manager

Contracts Manager

Industries
Property Practitioners Act 22 of 2019: Regulates property practitioners and real estate transactions, including mandatory disclosure requirements for property defects and condition reports
Consumer Protection Act 68 of 2008: Ensures fair and transparent transactions, requiring full disclosure of material facts and protecting consumers from unfair practices in property transactions
Alienation of Land Act 68 of 1981: Governs the formalities required for property sales and transfers, including disclosure requirements for property conditions
Protection of Personal Information Act (POPIA) 4 of 2013: Regulates the processing and protection of personal information in transactions, including property dealings and disclosure agreements
National Building Regulations and Building Standards Act 103 of 1977: Sets standards for building construction and maintenance, relevant for disclosing compliance and structural aspects of properties
Housing Consumers Protection Measures Act 95 of 1998: Provides protection for housing consumers and establishes warranty schemes, affecting disclosure requirements for new residential properties
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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