The recent credit act was one thing , now the consumer protection bill will have another major impact on the lives of the real estate professional.
I would like to invite comments from all stakeholders to share thier views on these well intended bits of legislation and the resultant effect on the industry and sale process in general.
I am no atorney , but my interpretation is as follows , the credit act as we now are mostly aware places the risk sqauarely on the lender to ensure the puchasers affordibility and suitability is matched to the finance product offered.
The consumer protection bill however is a bit more complex , heres my take on it as far as real estate transacting goes. Should the property being sold not be as described , advertised and shown , the purchaser can overturn the deal using this piece of legislation in his favour. I dont understand the relationship between voetstoots and the consumer protection bill , but thats how it reads to me .
If the above is the case , then real estate agents would be well advised to adopt the disclosure approach taken by USA and European real estate agents , and that is to provide as many professioanl disclosure options in the deal as possible to the purchaser . These include a full technical home condition inspection report signed off by a professional inspector , failing which they must sign a disclaimer that they refused an inspection and waive thier rights to recourse via the consumer protection bill.
Let me know if I am on track here please , and I would like to then know what measures the industry is taking to adopt this new bill and minimise its impact out the industry players. The Department of trade and industry has been instrumental in the construction and implementation of this bill , and can be viewed at www.dti.org.za