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Articles

Vol. 63 No. 4 (2026): Law&Social Bonds

The Purpose of Real Estate Acquisition as a Criterion for Differentiating Purchaser Protection under the Developer Act

DOI:
https://doi.org/10.36128/30acjs13
Submitted
31 May 2026
Published
24-09-2026

Abstract

The point of departure for the analysis undertaken in this paper is the observation that the Developer Act does not differentiate between the legal position of natural persons acquiring property in order to satisfy their own housing needs and that of natural persons acquiring property for investment purposes, in particular as a means of capital allocation. In the author's view, such a legal framework may result in the provision of protection that is unjustified or even contrary to the purpose of the Act. The paper seeks to demonstrate that an entity acquiring an additional property for wealth-preservation purposes does not occupy the position of the "weaker party" in a developer relationship and therefore does not require the special, enhanced protection afforded to purchasers under the Developer Act. In particular, the paper examines the merits of amending the Developer Act so as to permit the inclusion in developer agreements of clauses enabling the legal status of the property to be monitored following the transfer of ownership, as well as the possible introduction of a temporary restriction on the purchaser's entitlement to derive financial benefits from the property, for example through a tenancy arrangement. The issues addressed and the proposals advanced are intended to initiate a discussion on the need to restore contractual equilibrium within developer relationships. The paper forms part of a broader strand of analysis highlighting the importance of appropriately designed private-law instruments in the pursuit of public objectives, while emphasising the role of regulation governing developer relationships as one of the factors determining the sustainable development of housing.

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