Does the Consumer Protection Act (“CPA”) apply when I am selling my home?

The short answer is that the CPA will only apply if the seller is acting in the course and scope of her business, such as a property developer. (The CPA specifically defines “transaction” as meaning when a person acts in the ordinary course of business.)

When you are a once off seller then you will not be regarded as conducting the sale in the normal course of your business and hence the CPA will not apply to the sale.

The CPA applies to the relationship between the supplier (acting in the scope of her business) and a consumer or buyer of the property in this case. The consumer must be a natural person or a juristic entity with an asset value or turnover per annum of less than R2million to fall under the protection of the CPA.

The estate agent will however fall under the CPA as the selling of property falls within the ordinary course of business and they will be considered a service provider in terms of the Act.

If the CPA does apply to the sale of your home then you need to be careful when drafting your deed of sale as you need to make sure that the agreement is drafted in plain and understandable language (good bye to unnecessary legal jargon and latin phrases!) and that the purchaser’s attention is drawn to certain terms and conditions and that the traditional voetstoots clause is amended.

If you are unsure of your rights and obligations with respect to the CPA and you are selling your home then please do not hesitate to contact our property department for further assistance.