19/10/2025
𝗧𝗛𝗘 𝗜𝗠𝗣𝗢𝗥𝗧𝗔𝗡𝗖𝗘 𝗢𝗙 𝗧𝗛𝗘 𝗜𝗣𝗖𝗥
𝗪𝗵𝘆 𝘁𝗵𝗲 𝗰𝗼𝗺𝗽𝗹𝗲𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝘀𝗶𝗴𝗻𝗮𝘁𝘂𝗿𝗲 𝗼𝗳 𝗮 𝗺𝗮𝗻𝗱𝗮𝘁𝗲 𝗮𝗻𝗱 𝗜𝗺𝗺𝗼𝘃𝗮𝗯𝗹𝗲 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗖𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻 𝗥𝗲𝗽𝗼𝗿𝘁 𝗶𝗻 𝘁𝗲𝗿𝗺𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗣𝗿𝗮𝗰𝘁𝗶𝘁𝗶𝗼𝗻𝗲𝗿𝘀 𝗔𝗰𝘁 𝗡𝗼. 𝟮𝟮 𝗼𝗳 𝟮𝟬𝟭𝟵 𝗶𝘀 𝘀𝗼 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁:
When a seller chooses an estate agent to sell his/her property, a mandate must be given by the seller to the estate agent. The code of conduct of the Property Practitioners Act (hereinafter the “PPA”), specifically Regulation 34.3, states that an estate agent shall not offer to sell or let a property without a mandate given by the seller or lessor.
The mandate can be in the form of a sole, exclusive, dual or multiple agent (open) mandate. Any changes that either party wants to bring to the mandate must be done in writing and attached to the original mandate.
𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝗰𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗜𝗺𝗺𝗼𝘃𝗮𝗯𝗹𝗲 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗖𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻 𝗥𝗲𝗽𝗼𝗿𝘁:
Section 67 of the PPA stipulates that:
67. (1) 𝘈 𝘱𝘳𝘰𝘱𝘦𝘳𝘵𝘺 𝘱𝘳𝘢𝘤𝘵𝘪𝘵𝘪𝘰𝘯𝘦𝘳 𝘮𝘶𝘴𝘵—
(𝗮) 𝗻𝗼𝘁 𝗮𝗰𝗰𝗲𝗽𝘁 𝗮 𝗺𝗮𝗻𝗱𝗮𝘁𝗲 𝘂𝗻𝗹𝗲𝘀𝘀 𝘁𝗵𝗲 𝘀𝗲𝗹𝗹𝗲𝗿 𝗼𝗿 𝗹𝗲𝘀𝘀𝗼𝗿 𝗼𝗳 𝘁𝗵𝗲 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗵𝗮𝘀 𝗽𝗿𝗼𝘃𝗶𝗱𝗲𝗱 𝗵𝗶𝗺 𝗼𝗿 𝗵𝗲𝗿 𝘄𝗶𝘁𝗵 𝗮 𝗳𝘂𝗹𝗹𝘆 𝗰𝗼𝗺𝗽𝗹𝗲𝘁𝗲𝗱 𝗮𝗻𝗱 𝘀𝗶𝗴𝗻𝗲𝗱 𝗺𝗮𝗻𝗱𝗮𝘁𝗼𝗿𝘆 𝗱𝗶𝘀𝗰𝗹𝗼𝘀𝘂𝗿𝗲 𝗶𝗻 𝘁𝗵𝗲 𝗽𝗿𝗲𝘀𝗰𝗿𝗶𝗯𝗲𝗱 𝗳𝗼𝗿𝗺; 𝗮𝗻𝗱
(b) provide a copy of the completed mandatory disclosure form to a prospective purchaser or lessee who intends to make an offer for the purchase or lease of a property.
(2) The completed mandatory disclosure form signed by all relevant parties must be attached to any agreement for the sale or lease of a property, and forms an integral part of that agreement, but if such a disclosure form was not completed, signed or attached, the agreement must be interpreted as if no defects or deficiencies of the property were disclosed to the purchaser.
(𝟯) 𝗔 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗽𝗿𝗮𝗰𝘁𝗶𝘁𝗶𝗼𝗻𝗲𝗿 𝘄𝗵𝗼 𝗳𝗮𝗶𝗹𝘀 𝘁𝗼 𝗰𝗼𝗺𝗽𝗹𝘆 𝘄𝗶𝘁𝗵 𝘀𝘂𝗯𝘀𝗲𝗰𝘁𝗶𝗼𝗻 (𝟭) 𝗺𝗮𝘆 𝗯𝗲 𝗵𝗲𝗹𝗱 𝗹𝗶𝗮𝗯𝗹𝗲 𝗯𝘆 𝗮𝗻 𝗮𝗳𝗳𝗲𝗰𝘁𝗲𝗱 𝗰𝗼𝗻𝘀𝘂𝗺𝗲𝗿.
(4) Nothing in this section prevents the Authority from taking action against a property practitioner or imposing an appropriate sanction.
(5) Nothing in this section prevents a consumer, for his or her own account, from undertaking a property inspection to confirm the state of the property before finalising the transaction.
It is therefore crucial that an agent provides the purchaser with a completed and signed IPCR in the prescribed form to avoid any potential disputes and personal liability.
Sellers and agents should ensure that an IPCR is completed, signed and provided to the purchaser. Purchasers should ensure that a thorough inspection is completed to ensure that all defects he/she wants repaired are written into the sale agreement to be enforceable.
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