Consumer Protection Act: Cancelling the sale agreement

The author in yesterday’s article on Realestateweb makes the following statement:

“The purchasers of property that was marketed to them via direct marketing, such as e-mail, will be able to cancel the sale after the property has been registered, and months after the sale agreement was signed, according to the new Consumer Protection Act (CPA).” [My underlining]

The full article is available at www.realestateweb.co.za/realestateweb/vi...=79422&sn=Detail

The Consumer Protection Act comes into operation on 01st April 2011.

A possible cancellation after registration raises some interesting questions, such as:

1. Will it be the original conveyancer, who attended to the transfer to the Purchaser, who must now see to the re-transfer of the property to the Seller?
2. What about the money that has been paid, for example, to the former bond-holder, to settle that bond? And will that bond simply be “re-instated” by the bank?
3. Who is going to pay the costs of the “re-transfer”?
4. Will SARS readily refund the Purchaser any transfer duty that has been paid?
5. What about the original estate agent? Must the estate agent refund the full commission? What if the agent has already spent the money? Or is no longer an estate agent?
6. Will it make sense, in order to prevent such a “cancellation”, to allow the purchasers to occupy the property for a minimum of five business days and then only pass transfer?

Regards
Sieg

[I am now blogging this diary: see http://aconveyancersdiary.blogspot.com/ ]