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Exemption granted on mandatory disclosure forms for commercial properties

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Exemption granted on mandatory disclosure forms for commercial properties

The Property Practitioners’ Regulatory Authority (PPRA) earlier this year granted the South African Property Owners Association (SAPOA) and its members an exemption from the requirement to include a mandatory disclosure form in commercial property sale and lease agreements. 

5 Nov 2024 1 min read Real Estate Law Alert Article

At a glance

  • The Property Practitioners' Regulatory Authority (PPRA) earlier this year granted the South African Property Owners Association (SAPOA) and its members an exemption from the requirement to include a mandatory disclosure form in certain commercial property sale and lease agreements.
  • This exemption is effective from 14 March 2024 until 31 December 2026, with SAPOA stating that it will seek to further extend this exemption for its members, if necessary.

 This exemption applies to section 67(1) of the Property Practitioners Act 22 of 2019, read with Regulation 36, and allows for lease agreements containing the standard provisions that a landlord will provide their tenant with a lease premises in a specific state as agreed between the parties and that the tenant will be given a period of time, usually 7 or 14 days, within which they must point out any snags in the premises.

Furthermore, sale agreements that provide for a due diligence to be carried out by the purchaser will also be exempted from the provisions of section 67 read together with Regulation 36.

This exemption is effective from 14 March 2024 until 31 December 2026, with SAPOA stating that it will seek to further extend this exemption for its members if necessary in 2026, ensuring ongoing compliance ease for the commercial property sector.

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