When the Property Practitioners Act 22 of 2019 came into effect on 1 February 2022, it changed the way every property transaction in South Africa is supposed to start. Section 67 of the Act is clear. A property practitioner may not accept a mandate from a seller or landlord unless the owner has provided a fully completed and signed Mandatory Disclosure Form, also called the Immovable Property Condition Report, beforehand. The form must then be attached to any agreement for sale or lease.
Morné Prinsloo, Residential Property Specialist RE/MAX Town and Country Roodepoort & Krugersdorp, says this applies to both sale and rental transactions. It is not optional. And for agents who treat it as a formality to get out of the way after the fact, the legal consequences are real.
What the Form Actually Requires
Prinsloo explains that the Mandatory Disclosure Form requires the owner to declare the condition of the property honestly, covering defects that are visible and easily identifiable, defects that may only become apparent later, and anything that has been deliberately concealed in the past. The owner certifies that the information is true to the best of their knowledge at the date of signature.
The form must be signed by the owner, the property practitioner, and the prospective purchaser or tenant before any offer is made. If the form was not attached to the agreement when it was signed, the law interprets the transaction as if no defects were disclosed at all. That creates a very uncomfortable legal position for the seller and for the agent. An agent who fails to comply with Section 67 may be held personally liable by an affected consumer and can face sanctions from the PPRA, including a fine of up to R15,000 per infraction.
Why Some Agents Still Struggle With This
Prinsloo says : "In practice, many agents approach the disclosure form as paperwork that comes after the listing conversation rather than before it. The problem with that approach is that by the time a buyer or tenant is viewing the property, the form should already be completed and ready to share. Getting it done under time pressure, or worse, asking a seller to fill it in while a buyer is waiting to make an offer, creates risk for everyone.
"Some sellers also resist completing the form properly. They either do not want to disclose known issues because they believe it will reduce the price, or they underestimate what the form is actually asking them to declare. This is where the agent's role matters most. Getting this right is not just about legal compliance. It is about protecting the seller from a claim that could follow them years after the transfer," he says.
The Most Efficient System
Prinsloo says the simplest and most efficient approach is to make the Mandatory Disclosure Form part of the mandate appointment itself. "I do not go to a listing meeting with the mandate alone. I go with both documents together and I explain to the seller upfront what the form is, why it exists, and why completing it honestly is in their best interest.
"I walk through the form with the seller rather than leaving them to complete it alone. This produces more accurate and complete disclosures, because many sellers do not realise that something they have known about and lived with for years qualifies as a defect requiring declaration. A damp patch behind a cupboard. A crack in the garage wall. A geyser that has been leaking and repaired twice. These are exactly the kinds of things the form is designed to capture, and a seller completing it alone may not connect the dots between their lived experience of the property and what the law requires them to disclose.
"Once the form is completed and signed, I save a digital copy immediately. I use this as the master document that gets attached to every offer to purchase or lease agreement that follows. Every serious buyer or prospective tenant who requests it receives a copy before they make any offer.
For Rental Properties
Since the PPA extended the mandatory disclosure requirement to rental agreements as well as sales, landlords who let property through agents are also required to complete the form before a mandate is accepted. This catches many landlords by surprise, particularly those who have been renting out properties for years under the previous system. "I explain to every landlord that the form is now as much a part of the rental process as the lease itself, and that their honest disclosure of the property's condition is what protects them from tenant disputes down the line.
"The form is not a burden if it is built into the process from the start. The agents who find it burdensome are those who are still trying to fit it in after the fact. Get it done at the mandate stage. Keep a digital copy. Attach it to every agreement. That is the whole system, and it works".
The most efficient way to manage mandatory disclosure forms in all transactions
With property condition disclosure forms now a strict requirement in both sale and rental agreements, compliance has become a central part of the transaction process. According to Antonie Goosen, principal and founder of Meridian Realty, efficiency lies in integrating disclosure into the workflow from the very beginning. “The disclosure form should never be treated as an afterthought. It needs to be completed before the property is actively marketed".
He explains that early completion reduces risk. “When sellers or landlords complete the form upfront, it ensures that all known defects are documented and disclosed to potential buyers or tenants. This protects both parties and reduces the likelihood of disputes later," he says.
Digital tools have made the process significantly easier. “Using digital platforms to complete, store, and share disclosure forms improves accuracy and accessibility. It also ensures that the latest version is always available," says Goosen.
Goosen emphasises the importance of accuracy. “Incomplete or vague disclosures can create legal exposure. Agents must guide clients to provide clear and honest information,” he says.
Consistency across transactions is also key.“Standardised processes ensure that no steps are missed. Every listing should follow the same sequence, disclosure, mandate, marketing, and offer". He adds that disclosure can also be used as a selling tool.
“A transparent property often builds greater trust with buyers. When buyers feel informed, they are more confident in proceeding," he says. Ultimately, Goosen believes that efficient disclosure management enhances professionalism.
“It is about creating a seamless process that protects all parties,” he says. “When done correctly, it strengthens the credibility of both the agent and the transaction.”
