Understanding and navigating the Voetstoots clause in South Africa

The Voetstoots clause is a legal provision often encountered in property transactions within South Africa. It is crucial for both
buyers and sellers to comprehend the implications and significance of this clause before entering into a property
transaction. This guide aims to provide a comprehensive overview of the Voetstoots clause, its implications, and considerations.

Understanding the Voetstoots Clause:
The Voetstoots clause, derived from Roman-Dutch law, is commonly found in property sale agreements. When included in a
contract, it essentially states that the property is sold “as is,”with the buyer accepting the property’s current condition,
including any visible or latent defects. In simpler terms, the buyer purchases the property with its existing flaws and issues, relieving the seller of any liability for
defects.

Implications for Buyers:
Understanding the Voetstoots clause is vital for buyers, as it shifts the responsibility of identifying
and addressing defects from the seller to the buyer.

Buyers should:

  1. Conduct Thorough Inspections: Prior to signing the agreement, engage a professional valuator to assess the property for defects. This includes both obvious and hidden issues.
  2. Request Disclosures: While the Voetstoots clause limits the seller’s obligation to disclose defects, buyers can still ask for information about known issues.
  3. Negotiate: Negotiate the price considering potential repair costs and defects. Try to strike a balance that reflects the property’s actual value.

Implications for Sellers:

For sellers, the Voetstoots clause offers protection against potential legal actions arising from defects after the sale. However, sellers should:

  1. Be Transparent: Disclose known defects to the buyer, even though the clause limits your liability. Failing to disclose known issues could lead to legal complications.
  2. Maintain Integrity: Avoid misrepresentation or hiding defects to deceive the buyer. Such actions can have serious legal consequences.
  3. Consider the Market: Understand that buyers may be cautious due to the Voetstoots clause, so be prepared to negotiate the price accordingly.

Legal Considerations:

Latent Defects: Even with the Voetstoots clause, sellers cannot escape liability for latent defects (defects not reasonably discoverable during inspections), fraudulent misrepresentation, or defects deliberately concealed.

Consumer Protection Act (CPA): In certain circumstances, the CPA may override the Voetstoots clause, particularly when the seller is considered a supplier and the buyer a consumer. Seek legal advice to understand the CPA’s impact.

Voetstoots and Auctions: In auction sales, the Voetstoots clause typically does not apply. Properties are sold “with all faults” at auctions, and buyers should be aware of this distinction.


Seek Legal Advice:

Considering the complexity and potential legal implications of the Voetstoots clause, it’s strongly recommended that both buyers and sellers consult with legal professionals specializing in property law. They can provide personalized advice based on specific circumstances and ensure that all legal requirements are met.

Conclusion:

The Voetstoots clause is a significant element in South African property transactions, shaping the rights and responsibilities of both buyers and sellers. Thorough understanding, transparent communication, and professional guidance are essential for a successful property transaction while navigating the intricacies of the Voetstoots clause. The Mandatory disclosure form that is now in place in South African Property law will assist with the Voetstoots clause.