Before a single signature is put to paper, the seller of a residential property in South Africa is legally required to answer a critical question: What do you know about the condition of the home you’re selling? The answer comes in the form of a mandatory property disclosure form, and it carries legal consequences.

This form isn’t a courtesy — it’s a statutory requirement under the Property Practitioners Act. It must be completed honestly and attached to the sale agreement before it’s signed. And while it doesn’t require technical knowledge or a professional inspection, it does demand full transparency about any issues the seller is aware of — whether structural, legal, or administrative.

What many sellers don’t realise is that omitting known defects or failing to disclose something like unapproved building plans can later be used as grounds to cancel the sale or claim damages. For buyers, it’s one of the few tools that offers insight into what’s beneath the surface — quite literally.

What Is the Mandatory Disclosure Form?

The mandatory disclosure form is a legally required document that must be completed by the seller of a residential property in South Africa. It was introduced under Section 67 of the Property Practitioners Act 22 of 2019, and its primary purpose is to ensure that buyers are fully informed about any known defects or issues affecting the property — before they commit to purchasing it.

This form must be completed and signed by the seller and must be attached to the offer to purchase or sale agreement prior to signature. If the form is not completed, the sale agreement may still be valid — but the law explicitly states that it will be interpreted in favour of the purchaser should any dispute arise. That detail alone should signal how seriously the courts and the Property Practitioners Regulatory Authority (PPRA) regard full and honest disclosure.

Unlike a professional inspection report, the disclosure form does not require expert analysis or diagnostic testing. It simply requires the seller to confirm, in writing, whether they are aware of any issues relating to key areas of the property — such as leaks, damp, structural defects, unapproved alterations, or municipal encroachments.

The Legal Effect of the Disclosure Form

It’s important to understand that this form becomes part of the contract. If a seller knowingly withholds information or falsely claims that they are unaware of a material defect, they may face legal consequences even after registration of transfer. This can include:

• Rescission of the contract
• A damages claim by the purchaser
• Loss of trust in the seller’s agent or the conveyancer involved

The PPRA has made it clear that this is a core element of ethical property practice, and agents who fail to ensure that the form is correctly handled may also face regulatory scrutiny.

What Must the Mandatory Disclosure Form Include?

The mandatory property disclosure form is designed to prompt sellers to declare, to the best of their knowledge, any defects or issues affecting the property. The questions are structured to cover a broad range of possible risks — not only physical damage, but also legal, municipal, and regulatory concerns that could affect a buyer’s decision.

Below is a breakdown of what the form typically includes, with context on why each section matters:

1. Roof Leaks or Structural Damage

Sellers must disclose whether they are aware of any leaks, cracks, or structural weaknesses in the roof, ceilings, or trusses. Even a small leak can signal deeper issues — especially in older properties — and buyers often rely on this section to gauge whether a professional inspection is needed.

2. Damp, Water Damage, or Mould

One of the most common — and most litigated — issues in property sales. This includes signs of rising damp, water stains, mould in bathrooms or basements, and previous repairs related to water ingress. Damp problems can be costly to fix and are often not visible during a casual viewing.

3. Foundation Issues or Cracking Walls

The seller must declare whether they are aware of subsidence, shifting foundations, or serious cracks in internal or external walls. These issues may affect insurability, resale value, and the long-term safety of the property.

4. Plumbing and Drainage Problems

This includes leaking pipes, blocked drains, irregular water pressure, and any history of plumbing-related repairs. If not disclosed, plumbing faults discovered after transfer could lead to claims of misrepresentation — particularly in areas like bathrooms, kitchens, and outbuildings.

5. Electrical System Defects

Sellers must disclose any known faults in the electrical system, including non-functional lights or sockets, overloaded circuits, or illegal wiring. This section is often cross-referenced with the electrical compliance certificate, but a COC alone doesn’t absolve a seller from disclosing what they know.

6. Boundary Disputes or Encroachments

If the seller is aware of any boundary-related issues — such as neighbour disputes, encroaching structures, or discrepancies with the municipal diagram — these must be disclosed. Boundary disputes can delay transfer or result in future litigation.

7. Unapproved Alterations or Additions

This includes any extensions, renovations, or building work done without municipal approval. If a structure was added without plans or occupancy certification, the buyer may face penalties — or be required to demolish the illegal work. This is also where missing building plans become a major issue. If the seller knows that approved plans are not available or were never submitted, it must be disclosed here.

8. Zoning, Land Use, or Title Restrictions

Sellers must disclose whether they are aware of any zoning limitations, servitudes, restrictive title conditions, or usage restrictions that could affect the buyer’s plans. For example, a buyer intending to run a business from home may be blocked by a residential zoning restriction — and can only make an informed decision if this is declared upfront.

9. Occupancy Certificate (if applicable)

If the property was recently built or substantially renovated, it may require an updated occupancy certificate issued by the municipality. The seller should confirm whether they have this on record, and whether it matches the current structure on the property.

10. Pending Legal Proceedings or Municipal Notices

This includes any litigation involving the property, or municipal notices such as demolition orders, rezoning applications, building control warnings, or service arrears. Failure to disclose pending issues could materially affect the buyer’s risk exposure.

11. Latent vs Patent Defects

While the form primarily addresses latent defects (issues not visible upon inspection), the seller is encouraged to disclose patent defects as well — such as visibly damaged windows, broken tiles, or cracked pool paving. Transparency here can prevent disputes later, even if the buyer saw the damage at the time of offer.

Read: The Voetstoots Clause & Latent vs Patent Defects

12. Additional Disclosures or Explanations

The form typically includes space for additional remarks, allowing the seller to elaborate on any issue mentioned above or to disclose something not specifically listed. This may include issues like recurring pest infestations, historical insurance claims, or nearby developments affecting noise or privacy.

Why This Form Protects Both Buyer and Seller

It’s easy to view the mandatory disclosure form as a burden placed on the seller. But in reality, it’s a tool that protects both sides of the transaction — by setting clear expectations, documenting known risks, and reducing the potential for disputes after transfer.

For the buyer, the form offers critical insight. Most properties are sold “voetstoots” (as is), which means the buyer accepts the condition of the property, visible or not. Without disclosure, the buyer may discover serious issues — like damp, illegal structures, or zoning restrictions — only after they’ve paid in full and taken occupation. In that scenario, their only recourse is to prove the seller knew and intentionally concealed the defect, which is a costly legal battle at best. A completed disclosure form gives the buyer a reference point, increasing their legal protection and helping them make an informed decision before signing.

For the seller, the form creates a clear record of what was disclosed. It can prevent post-sale accusations of dishonesty or misrepresentation, which often arise months down the line when a defect is discovered and tempers flare. A well-completed form can limit the seller’s liability and show that they acted in good faith.

This is particularly important when it comes to issues like building plans. If the seller knows that additions or outbuildings were constructed without municipal approval — or that no plans exist for certain parts of the property — this must be disclosed. Failing to do so could leave the buyer with unexpected costs and serious compliance issues, including the risk of having to demolish non-compliant structures. Disclosing this upfront not only protects the seller legally, but also gives the buyer the opportunity to assess whether they’re willing to proceed — or to renegotiate terms accordingly.

Can a Buyer Cancel the Sale Because of the Disclosure Form?

The mandatory disclosure form carries legal weight — but its presence, or absence, doesn’t automatically void a sale. Instead, the law provides specific protections to the buyer, depending on how the form is handled.

If the seller fails to complete or attach the disclosure form before the agreement is signed, the contract remains valid. However, in the event of a dispute, the Property Practitioners Act requires that the contract be interpreted in favour of the buyer. This means that if a latent defect emerges, and there is no disclosure form in place, the seller may have little defence — even if they claim to have been unaware of the issue.
If the seller completes the form dishonestly, or omits known defects, the buyer may have grounds to:

• Rescind the sale agreement (i.e., have it cancelled and reversed); or
• Claim damages for misrepresentation or breach of contract.

The courts have historically treated false disclosures — or silence where disclosure was required — as a serious matter. A seller cannot hide behind the voetstoots clause if they knew about a defect and failed to disclose it.

Importantly, the buyer’s right to act depends on the facts: was the defect known to the seller? Was it material to the buyer’s decision? Was there a clear attempt to conceal or downplay it? These are the questions that guide whether cancellation is justified — and why full, honest disclosure is the seller’s best protection.

VDM Attorneys – Conveyancing Attorneys in Sandton

In every property transaction, the strength of the agreement lies in what is disclosed — and what is not. At VDM Attorneys, we ensure that mandatory disclosure forms are handled with the legal precision they require. From reviewing seller declarations to identifying risk exposure before signature, we provide the clarity our clients need to proceed with confidence.

For legal oversight that protects your position from the outset, speak to our conveyancing team.