Real Estate Transactions Quiz
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Questions and Answers

What must the buyer pay if they occupy the property before registration?

  • Occupational rent (correct)
  • Maintenance costs
  • VAT
  • Transfer duty
  • In a sale of immovable property, who is responsible for paying VAT?

  • The government
  • Both the buyer and the seller equally
  • The buyer
  • The seller (correct)
  • What right allows someone to purchase property before it is sold to another party?

  • Pre-emptive right (correct)
  • Option to purchase
  • Exclusive offer
  • Right of first sale
  • What must happen for the pre-emptive right to come into effect?

    <p>The owner must decide to sell the property</p> Signup and view all the answers

    What happens if the buyer fails to collect the object?

    <p>The seller can claim necessary expenses incurred for protection</p> Signup and view all the answers

    What is an option in the context of property contracts?

    <p>A contract that keeps an offer open for acceptance within a specified period</p> Signup and view all the answers

    What must the buyer deliver to the seller regarding benefits accrued before the contract became effective?

    <p>All benefits accrued, unless otherwise agreed</p> Signup and view all the answers

    Which of the following statements about the option is true?

    <p>The option cannot be offered to other parties during the specified period.</p> Signup and view all the answers

    What happens if the option contract is exercised?

    <p>A second contract is created that must adhere to its terms.</p> Signup and view all the answers

    Which statement about pre-emptive rights and options is true?

    <p>No formalities are needed unless specified by law or agreement.</p> Signup and view all the answers

    What is required for a valid sale of immovables under the Alienation of Land Act?

    <p>A signed written contract.</p> Signup and view all the answers

    Under which section of the Consumer Protection Act do consumers have remedies like return, replace, or refund?

    <p>Section 56</p> Signup and view all the answers

    What can C do if a defect in the printer is discovered after purchase under the applicable Consumer Protection Act?

    <p>Seek a refund, replacement, or return.</p> Signup and view all the answers

    If Monya sold her house with a known defect, what legal implications may arise?

    <p>She could be liable for misrepresentation if not disclosed.</p> Signup and view all the answers

    What is a consequence of not exercising the option contract?

    <p>The option contract and associated offer to sell are terminated.</p> Signup and view all the answers

    What distinguishes the formalities of option contracts in relation to main contracts?

    <p>Option contracts do not require compliance with formalities of main contracts.</p> Signup and view all the answers

    What section of the CPA does not provide a blanket exclusion of Monya's liability?

    <p>Section 55(6)</p> Signup and view all the answers

    What must the house comply with according to the CPA?

    <p>Standards of quality in terms of section 55</p> Signup and view all the answers

    What is the timeframe within which Refilwe can institute remedies against Monya for breach of quality standards?

    <p>6 months</p> Signup and view all the answers

    What remedies can Refilwe rely on if the house does not comply with quality standards?

    <p>Common law remedies or CPA remedies</p> Signup and view all the answers

    What was the primary issue with the house that Monya failed to disclose properly?

    <p>Leaky roof due to ineffective support</p> Signup and view all the answers

    What stipulation did Monya include in the deed of sale to reassure Refilwe?

    <p>Transfer of a contractor's roof guarantee</p> Signup and view all the answers

    What clause in the deed of sale excluded Monya's liability for latent defects?

    <p>Voetstoots clause</p> Signup and view all the answers

    What was the reason for Refilwe's dissatisfaction after the sale?

    <p>The roof continued to leak despite repairs</p> Signup and view all the answers

    How many times can the actio quanti minoris be claimed?

    <p>More than once</p> Signup and view all the answers

    What type of defect is the hairline crack in the engine considered to be?

    <p>Latent defect</p> Signup and view all the answers

    What can Elsa claim if she returns the Merx?

    <p>Monetary compensation for damages and the return of the Merx</p> Signup and view all the answers

    Which stipulation surrounds the actio redhibitoria?

    <p>It can only be claimed once.</p> Signup and view all the answers

    What was the primary consequence Elsa faced after driving the Merx?

    <p>She lost control and sustained personal injuries.</p> Signup and view all the answers

    What is a key legal principle regarding latent defects?

    <p>They make an item unfit for intended use.</p> Signup and view all the answers

    What was Busi's main argument in response to Elsa's claims?

    <p>Elsa was responsible for the damages.</p> Signup and view all the answers

    What type of compensation does Elsa seek from Busi due to her injuries?

    <p>For emotional distress and physical damages</p> Signup and view all the answers

    Which parties are still subject to Sections 60 and 61 of the CPA for transactions exempt from the Consumer Protection Act in South Africa?

    <p>Importer, producer, distributor, and retailer</p> Signup and view all the answers

    What is the general rule regarding claims based on the warranty of latent defects when a voetstoots clause is included in a sale?

    <p>Claims will not be valid if the defect was excluded in the sale</p> Signup and view all the answers

    Under what condition can a seller be held liable for a latent defect despite a voetstoots clause?

    <p>If the seller concealed the defect with intent to defraud</p> Signup and view all the answers

    How does the test from Waller v Pienaar determine the duty to disclose latent defects?

    <p>By considering if the defect was obvious to the buyer</p> Signup and view all the answers

    What burden does Busi have if she was aware of the crack before selling the Merx?

    <p>A duty to report the crack to the buyer</p> Signup and view all the answers

    What assumption can be made if the buyer could not have reasonably discovered the latent defect before the sale?

    <p>The seller may have a duty to disclose the defect</p> Signup and view all the answers

    Which of the following is NOT a situation where a seller could be liable despite a voetstoots clause?

    <p>Seller was unaware of the defect</p> Signup and view all the answers

    What was the nature of the advice given to Busi regarding the crack in the Merx?

    <p>To repair it before taking any further actions</p> Signup and view all the answers

    Study Notes

    Seller’s Rights

    • If the buyer fails to collect the purchased item, the seller can claim expenses incurred for the item’s protection and upkeep.

    Buyer’s Responsibilities in Immovable Property Sales

    • Buyer pays transfer costs and transfer duty.
    • Buyer pays occupational rent to seller if they occupied the property before registration.
    • Buyer delivers any benefits accrued to the property before the contract becomes effective to the seller, unless otherwise agreed.

    Pre-emptive Right

    • A pre-emptive right allows the holder to purchase property before the owner sells it.
    • The holder can either make an offer to the seller first or receive an exclusive offer from the seller.
    • It only comes into effect when the owner decides to sell; prior to this, the holder can’t make or receive offers.

    Option

    • An option allows the holder the right to accept an offer to buy or sell for a specified time.
    • During this period, the offer cannot be withdrawn or offered to anyone else.
    • If exercised, a second contract is created, and the grantor must adhere to its terms.
    • If not exercised, the option contract and its associated offer terminate.

    Formalities for Pre-emptive Rights and Options: Movables

    • No formalities are required unless explicitly specified by law or agreement.
    • Option contracts do not need to comply with formalities for the main contract.

    Formalities for Pre-emptive Rights and Options: Immovables

    • The Alienation of Land Act 68 of 1981 requires writing and signature for a valid immovable property sale.
    • The applicability of these formalities to pre-emptive rights and options for immovables is debated.

    Section 56 of the CPA

    • The Consumer Protection Act provides the following remedies for defective goods within 2 months:
      • Return
      • Replace
      • Refund

    Section 55 of the CPA

    • Goods must comply with standards of quality.
    • If they don't, the buyer has remedies in Section 56 within 6 months of contract conclusion.

    Common Law Remedies

    • In addition to remedies in Section 56, the buyer may also rely on common law remedies.

    Voetstoots Clause

    • This clause excludes liability for latent defects.

    Actio Redhibitoria

    • Allows the buyer to rescind the contract and return the defective goods.
    • Can only be claimed once.

    Actio Quanti Minoris

    • Allows the buyer to claim a reduction in the purchase price based on the defect.
    • Can be claimed multiple times.

    Latent Defects

    • A defect that was not apparent and could not be reasonably discovered by the buyer.
    • The seller may be held liable for latent defects if they knowingly concealed them.

    Duty to Disclose

    • No general duty to disclose latent defects unless the seller’s actions are fraudulent.
    • The buyer must prove they could not have reasonably discovered the defect on their own.

    CPA Exemptions

    • Even if a transaction is exempt from the CPA, the importer, producer, distributor, and retailer are still subject to Sections 60 and 61 of the CPA.

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    Description

    Test your knowledge on seller's rights, buyer's responsibilities, and options in immovable property sales. This quiz covers key concepts such as pre-emptive rights and the obligations of both parties in a property transaction.

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