Cape Town’s property market is competitive, emotional, and fast-moving. That combination makes it fertile ground for legal myths—half-truths passed around by friends, family, social media, or “someone who bought a place once.”
The problem? Property law in South Africa doesn’t care what you thought was true. It only cares about what’s written, signed, and legally compliant.
Below are the most common legal myths about Cape Town property, and the realities buyers and sellers need to understand before signing anything.
Myth 1: “An Offer to Purchase Isn’t Binding Until Transfer”
This is one of the most dangerous misunderstandings in property.
Reality:
Once an Offer to Purchase (OTP) is signed by both buyer and seller, it becomes a legally binding contract. Transfer can take months, but your legal obligations start immediately.
The only way out is:
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A valid suspensive condition (like bond approval) not being met, or
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A lawful cancellation clause being exercised correctly
Changing your mind is not a legal reason to cancel.
Why this matters:
Buyers who assume they can “pull out later” often end up facing penalties, legal costs, or forfeited deposits.
π Internal link: What Makes an Offer to Purchase Legally Binding in Cape Town
Myth 2: “The Estate Agent Is Responsible for the Legal Side”
Estate agents guide the process—but they are not your legal safety net.
Reality:
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Conveyancers handle the transfer
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Banks protect their bond interests
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Municipalities enforce compliance
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You are responsible for what you sign
Agents cannot give legal advice, alter contracts after signature, or protect you from clauses you didn’t read.
A professional agent explains the process clearly—but understanding the contract is still your responsibility.
π Internal link: What Estate Agents Do (And Don’t Do) in a Property Sale
Myth 3: “Rates and Levies Are Basically the Same Thing”
They’re not—even though many buyers treat them as one expense.
Reality:
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Municipal rates & taxes are paid to the City of Cape Town
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Levies are paid to a body corporate or homeowners’ association
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Sectional title owners often pay both
Failing to budget correctly is one of the biggest causes of buyer’s remorse after transfer.
π Internal link: Rates vs Levies in Cape Town: Don’t Get Confused
π Internal link: What Buyers Don’t Realise About Sectional Title Levies
Myth 4: “If I’m Buying Cash, I Don’t Need to Worry About Legal Risk”
Cash buyers love this one—and it’s wrong.
Reality:
Even without a bond, you’re still exposed to:
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Title deed restrictions
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Servitudes
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Zoning limitations
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Illegal building work
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Outstanding municipal issues
Banks may be strict, but they also act as an extra layer of scrutiny. Cash buyers who skip due diligence often inherit problems that surface later—at their cost.
π Internal link: Hidden Legal Risks Cash Buyers Overlook in Cape Town
Myth 5: “If the Property Has Been Transferred Before, It Must Be Compliant”
Transfer proves ownership—not compliance.
Reality:
A property can change hands multiple times while still having:
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Unapproved structures
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Non-compliant plumbing or electrical work
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Encroachments or building line violations
If you buy it, you inherit the problem—unless it was disclosed and dealt with in writing beforehand.
π Internal link: Compliance Certificates Explained for Cape Town Buyers
Myth 6: “Verbal Agreements Are Fine If Everyone Is Honest”
Property law does not recognise good intentions.
Reality:
South African law requires all agreements relating to the sale of immovable property to be in writing and signed.
That means:
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Verbal promises don’t count
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WhatsApp messages don’t override contracts
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“The seller said they’d fix it” means nothing if it’s not in the OTP
If it’s not written down, it doesn’t exist.
Myth 7: “Zoning Means I Can Use the Property Any Way I Want”
Zoning sets the base use—but it doesn’t override everything else.
Reality:
You may still be restricted by:
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Municipal by-laws
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Heritage overlays
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Body corporate or HOA rules
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Short-term letting regulations
Buying with plans to renovate, rent out, or run a business without checking restrictions can kill those plans after transfer.
π Internal link: Zoning and Property Use in Cape Town Explained
Myth 8: “Transfer Duty Is the Only Legal Cost I Need to Budget For”
Transfer duty is just one part of the equation.
Reality:
Buyers should also budget for:
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Conveyancing fees
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Deeds Office fees
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Bond registration costs (if applicable)
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Compliance certificates
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Pro-rata rates and levies
Underestimating costs is how deals fall apart late in the process.
π Internal link: True Cost of Buying Property in Cape Town
The Bottom Line: Property Law Punishes Assumptions
Most legal problems in Cape Town property transactions don’t come from bad actors—they come from buyers and sellers relying on myths instead of facts.
Once you sign, the law stops being flexible.
Lake Properties Pro Tip
The most expensive mistake in property is believing “I’ll sort it out later.”
At Lake Properties, we focus on clarity upfront—so our clients understand the legal realities before committing, not after transfer when it’s too late.
