Why Sellers Must Disclose All Defects on the Mandatory Disclosure Form

When selling a property, transparency is more than just good ethics – it’s a legal requirement under the Property Practitioners Act (PPA). The Property Practitioners Regulatory Authority (PPRA) requires every seller to complete a Mandatory Disclosure Form (MDF) when mandating an estate agent (or now referred to as Property Practitioners) to market and sell their property.  This form compels sellers to declare any latent defects (hidden faults that aren’t easily visible) and patent defects (obvious issues that a buyer can see on inspection).

Latent defects include problems like damp behind cupboards, roof leaks during heavy rain, faulty geysers, or structural cracks in foundations – issues that are not immediately noticeable. Patent defects, on the other hand, are clear on sight, such as broken windows, damaged flooring, or cracked tiles.

Why is disclosure so important?

✔️ Legal Protection: If a seller fails to disclose known defects, and the buyer later discovers them, the seller could face legal action. The buyer may claim damages, demand costly repairs, or even seek to cancel the sale.

✔️ Smooth Transactions: Full disclosure helps prevent disputes during the conveyancing process that could delay the transfer.  It also ensures the buyer’s expectations align with the actual condition of the property.

✔️ Compliance:  In terms of the PPRA, an estate agent is prohibited from marketing and selling a property without a completed and signed disclosure form.

The Mandatory Disclosure Form forms part of the sale agreement. Once signed by both parties, the buyer accepts the property’s condition as disclosed. However, failure to disclose known defects can amount to misrepresentation, which could have financial and legal consequences for the seller.

A Final Word for Sellers
Being upfront about your property’s condition isn’t just a box-ticking exercise – it protects you from liability and ensures a smoother transfer process. Before putting your property on the market, speak to your estate agent or attorney for guidance on completing the disclosure form correctly.

Transparency today saves trouble tomorrow.