THE PRICE OF IGNORANCE

Much has been written about the need to heed conditions of contracts and especially Deeds of Sale. The Latin phrase “Caveat Subscriptor” – let the signor beware applies in the event of all contracts. The implication is that once a person signed a legal document, he or she is bound by all its terms and conditions. Whether the signatory read the document, understood the conditions thereof or agreed with the fine print.

Another legal principle also applies – Ignorance of the law is no excuse.

And these two principles pose a significant challenge for landowners and business owners – the law presupposes an obligation on a purchaser to investigate all applicable conditions associated with any product or item purchased as well as an obligation to ensure that the entity who offers the item for sale is authorised to sell the item. But in the end, the obligation rests on the purchaser that he or she is familiar with the agreement entered into.

A particular challenge is to remain aware of new developments in an area or applicable laws – environmental, municipal bylaws and consumer laws develop continuously, imposing new obligations on all citizens. You may purchase a property and although you familiarized yourself with the conditions of the title deed and the agreement of sale, but you did not verify the provisions applicable to the area where this property is situated – is it within an environmental sensitive area, adjacent to a protected area, or after you purchased the property, it falls in a newly developed estate or a gated area.

Landownership entails a continuous obligation to remain aware of new developments and the changing legal environment. Because non-compliance with contract conditions may result in cancellation of the agreement, associated with extensive legal fees or even forfeiture of money spent to date on the purchase price or improvements to the property. Fines that can be imposed in the event of non-compliance with laws are continuously increased – non-compliance with requirements of environmental legislation was increased to a maximum of R10 million over the past years.

The message from the legislators is clear – choose to ignore the law at your own risk and costs …

And the challenge to landowners remain – be involved in community affairs to remain informed, consult the written and social media and preferably, regularly consult with legal specialists to ensure you are aware of changes in legislation or your legal position.

Knowledge is power and peace of mind.