Immovable property transactions, Voetstoots and the CPA

The Voetstoots clause essentially protects the Seller by seeking to deprive the Buyer of any recourse against the Seller, if the property has any latent or patent defects. Latent defect are discovered by a thorough inspection prior to sale, while patent defects are visible on inspection.

“Voetstoots” is a standard clause in an immovable property sale agreement. It protects the Seller by stating that the property is purchased “as is”.

The Consumer Protection Act, 2008 (“CPA”) only applies to sale transactions where the Seller sells the immovable property in the ordinary course of the Seller’s business. This places restrictions on voetstoots clauses.

Where the CPA does apply, a Seller will find it difficult to rely on the voetstoots clause. However, as the CPA does not apply to “once-off” transactions, voetstoots (as we know it) still applies to the majority of immovable property transactions.

For more advice on voetstoots, the CPA and immovable property transactions, please contact us or send as email to Stuart@fouriestott.co.za or Vicky@fouriestott.co.za