Summary
of Le Roux v
Zietsman and Another: Key Legal Insights on Voetstoots and Seller
Obligations
Introduction
When
you buy something, there is an implied warrantee that the thing sold is free
from any defects. It is, however, possible that one can contract out of this
implied warranty by inserting a term into the contract that says that the sale
is “voetstoots” (that you buy the goods “as is” [warts and all] and cannot rely
on the implied right to defect-free goods and complain later if you find
certain defects in the goods). However, this clause does not absolve sellers
from disclosing known defects and the law recognizes an implied warranty
against defects in immovable property.
The
Supreme Court of Appeal (SCA) case of Le Roux v Zietsman and Another
sheds light on important legal principles surrounding the sale of immovable
property, particularly the concept of "voetstoots" and the seller's
duty to disclose latent defects. This summary will explore the facts of the
case, the court's findings, and the implications of the Consumer Protection Act
(CPA) on fixed property transactions.
Facts
of the Case
In
July 2011, the Zietsmans purchased a guesthouse in Tzaneen, Limpopo, from Le Roux.
Shortly after taking possession, the property suffered severe water damage due
to a leaking roof, which resulted in flooding and damage to furniture.
The
Zietsmans incurred costs of R241,281.76 for roof repairs and lost R102,725.04
in rental income while the property was under repair. They subsequently sued Le
Roux for damages, alleging fraudulent non-disclosure of the roof's defects.
Initially,
the Regional Court ruled in favour of the Zietsmans, awarding them damages. Le
Roux's appeal to the High Court was dismissed, leading to the case being taken
to the SCA.
Examination
of Findings by the SCA
The
central question before the SCA was whether Le Roux knowingly concealed the
roof's latent defect with the intent to induce the sale.
The
court reviewed the evidence presented, which included an engineer's report
indicating longstanding defects in the roof and several other factors, leading
to the finding that Le Roux had fraudulently misrepresented the roof’s
condition, which influenced the Zietsmans’ decision to purchase the property.
The
court thus denied Le Roux’s appeal, confirming that if a seller knowingly
conceals defects the voetstoots clause becomes ineffective. In this case, Le
Roux's failure to disclose the roof’s condition meant he could not rely on the
voetstoots defence, and the Zietsmans were justified in their claim for
damages.
Consumer
Protection Act (CPA) and Fixed Property
The
definition of “goods” in the CPA has been amplified to include a legal interest
in land or other immovable property.
In
terms of the CPA the consumer is entitled to receive goods that are reasonably
suitable for the purpose for which they are generally intended, are of good
quality, in good working order and free of any defects.
The
CPA emphasizes consumer rights and imposes a statutory duty of disclosure on
sellers regarding latent defects in property transactions. Sellers may be held
accountable for damages arising from defective goods.
While
the CPA does not explicitly abolish the voetstoots clause, it significantly
modifies its application, offering greater protection to consumers. This shift
suggests that the traditional understanding of voetstoots may be evolving.
Conclusion
The
case of Le Roux v Zietsman and Another highlights the importance of
transparency in property transactions and the legal consequences of failing to
disclose known defects. The SCA reinforced that the voetstoots clause does not
shield sellers from liability when fraud is involved.
Additionally,
the CPA introduces crucial protections for consumers, ensuring they are
informed and safeguarded against undisclosed defects. As legal interpretations
continue to evolve, both sellers and buyers must navigate these complex
regulations carefully to avoid disputes.
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