Offers & Disclosures

Applicable Legislation

Act	Section	What It Governs
PPA	§47	Mandatory Disclosure Form — seller must disclose known material defects in residential property sales
PPA Regulations, 2022	Schedule 2	Prescribed disclosure form format and content
Code of Conduct (PPA)	§4	Must present all written offers to the seller promptly — no withholding
CPA	§44	Cooling-off rights — buyer in a distance/electronic transaction may have 5 business days to cancel
CPA	§55	Consumer has right to safe, good-quality goods — a defective property can give the buyer recourse against the seller
CPA	§56–57	Implied warranty — buyer can hold seller liable for latent defects not disclosed
PPA	§48	Practitioner must keep records of all offers and counter-offers for minimum 3 years

✅ Compliance Checklist

• Mandatory Disclosure Form is completed by the seller and signed before marketing the property
• Disclosure form covers all known material defects: structural issues, water damage, electrical, plumbing, roof, geyser, damp, boundary disputes, illegal structures
• Disclosure form is shown to prospective buyers before an offer is signed
• All written offers are presented to the seller immediately and without delay
• Offer-to-purchase document is in plain language and explains all material terms and conditions
• The buyer's cooling-off rights (where applicable — distance/electronic sales) are disclosed
• Finance, inspection, and other suspensive conditions are clearly stated
• Counter-offers are handled without delay — each variation is documented in writing
• Any known latent defects not on the disclosure form that come to light during the offer process are disclosed to the buyer in writing
• Practitioner does not exert undue pressure on buyer to make an offer or remove suspensive conditions
• Commission clause in the offer confirms the practitioner's entitlement, quantum, and trigger event

❌ Prohibited Actions

• ✗ Selling a residential property without a signed disclosure form — the Act makes this an offence
• ✗ Withholding offers from the seller — every written offer must be presented
• ✗ Encouraging a seller to lie on the disclosure form — practitioner who knows of defects must ensure disclosure
• ✗ Telling a buyer "you can't get a proper inspection before signing" — buyer has the right to a professional inspection
• ✗ Failure to disclose that the practitioner is acting as a principal in the transaction (e.g. buying property for themselves)

⚠️ Warning Flags

• "The seller said there's no problem" — if you suspect a defect and the seller has not declared it on the disclosure form, recommend the buyer get a professional inspection anyway.
• Latent vs patent defects: patent defects are visible on inspection; latent defects are hidden (burst geyser behind a wall, faulty wiring). Both must be disclosed if known.
• Illegal structures: a swimming pool without a compliance certificate, an unauthorised granny flat, or a boundary wall on a servitude — the seller must disclose these. You need to ask.
• Disclosure form is not a waiver: even with a signed disclosure form, a buyer can claim relief for latent defects the seller knew about but did not disclose.