PROPERTY IN JOHANNESBURG - CPA

Since the introduction of the Consumer Protection Act in South Africa there are many more services that you can expect from an estate agent when looking at properties in Johannesburg. The Consumer Protection Act is however not just there to protect you but the rights of a property owner as well as the obligations and responsibilities of the estate agent. With all these new rules in place property may be a bit more complicated to come by but at least every party in the transaction knows exactly where they stand. The Consumer Protection Act relates to both rental properties in Johannesburg as well as properties that are for sale. Properties for Sale and the Consumer Protection Act There are two main ways in which the Consumer Protection Act affects properties for sale in Johannesburg. In the past buyers who put an offer in to purchase a property were obligated to finalise the purchase and could not change their minds. The first way in which the Consumer Protection Act protects potential property buyers is by providing a five day period in which they have the option to withdraw an offer to purchase. Once this five day period expires the buyer is obligated to purchase as before Before the introduction of the Consumer Protection Act all properties in Johannesburg and in South Africa were sold ‘Voetstoots”. This is no longer the case and the owner as well as the estate agent must point out any defects or problems with the property before an offer is made. The owner is then responsible to make any necessary changes or repair and can alternatively cover the costs of any necessary work on the property. Rental Properties and the Consumer Protection Act There are numerous ways in which lease agreements have been changed according to the regulations in the Consumer Protection Act. The most important of these changes is that no lease agreement may have a term of longer than 24 months or two years. After the expiration of the period the property owner and renter can come to an agreement to extend the lease period for another two years. Prior to the Consumer Protection Act there was no way out of lease agreement for either the Lessee or Lessor unless both parties agreed to terminate the agreement. Now however the renter and the owner only need to give a 20 day notice that they will be terminating the agreement. However, the owner can only give notice of termination if the Lessee is in any way in contravention of the lease agreement. There are many more factors that have changed with regard to the leasing of immovable properties in Johannesburg. Whether you are a property owner or wish to rent a property it is very important to make sure you know about these factors and how they will affect your rights and responsibilities as they relate to the rental property. Your nearest estate agent should be able to assist you in ensuring that your rights are covered whether you are renting or buying a property.