In the world of real estate transactions, agreements of sale are pivotal documents.
They often encompass various aspects, including the requirement for compliance certificates.
Sellers, unless otherwise agreed upon, are responsible for obtaining up to five different types of compliance certificates before the property transfer is registered.
In this article, we will delve into the key aspects of each compliance certificate, shedding light on their significance in the property sale process.
Electrical Compliance: Ensuring Safety Standards
One of the most crucial certificates is the Electrical Compliance certificate (CoC).
It certifies that the electrical installation on the property adheres to the necessary safety standards governed by the Occupational Health and Safety Act.
Here are some essential points to consider:
Safety Standards
The certificate ensures that the electrical installation complies with safety standards.
Remedial Work
In some cases, remedial work may be necessary, so prompt attention is advised.
Certificate Validity
The certificate is typically valid for two years, unless alterations are made before expiration.
Non-Waivable
Parties involved cannot contract out of or agree to waive this requirement.
Beetle Certificates: Protecting Against Wood-Destroying Beetles
Beetle Certificates are essential to ensure that the accessible wood of permanent structures on the property is free from wood-destroying beetles.
Key points to note include:
Validity Period
These certificates are usually valid for 3 to 6 months.
Cost Responsibility
If parties agree that no certificate is needed, but the bank requires it for the purchaser’s bond, the cost falls on the purchaser.
Legal Basis
While not governed by a specific law, it has become a common practice during property ownership changes.
Gas Certificates: Ensuring Gas Safety
Gas Certificates guarantee that the gas installation on the property complies with the Occupational Health and Safety Act and related safety standards.
Important details are:
Installation Requirement
A certificate must be obtained upon installation.
Amendment Requirement:
Any changes or amendments require a new certificate.
Non-Waivable:
Parties cannot contract out of or agree to waive this requirement.
Plumbing Certificates: Meeting Municipal Regulations
Plumbing Certificates are applicable only to transfers within the municipal jurisdiction of the City of Cape Town.
They certify that the water installation on the property aligns with the City of Cape Town Water By-laws.
Key points include:
Location Specific
This certificate is only required within the City of Cape Town.
Ownership Change
A new certificate is necessary with every change of ownership.
Non-Waivable
Parties cannot contract out of or agree to waive this requirement.
Note: Very Important !
It’s important to remember that this certificate doesn’t confirm the perfect condition of all plumbing works.
Understanding Plumbing Certificates: What Do They Confirm?
Plumbing certificates confirm several vital aspects, including:
- Building Regulation Compliance: The water installation adheres to national building regulations.
- Meter Functionality: The property’s water meter is in working order.
- Defect-Free: There are no defects that can lead to water wastage.
- Preventing Leaks: The certificate ensures that rainwater does not leak into the sewerage system.
Electric Fence: Safety First
The Electric Fence Compliance certificate certifies that the electric fence installation meets the required safety standards under the Occupational Health and Safety Act.
Here’s what you should know:
Transferable
An existing certificate can be transferred from the seller to the purchaser.
Change Requirement
A new certificate is necessary for the purchaser if any changes are made after the current certificate’s issuance.
Sectional Title
For sectional title properties, obtain the certificate from the body corporate.
Non-Waivable
Parties cannot contract out of or agree to waive this requirement.
Expert Property Advice: Ensuring a Smooth Sale
It’s highly advisable for sellers to conduct inspections at the listing stage.
This helps them understand the potential repairs needed.
While it’s typically required for the seller to provide the purchaser with the compliance certificates by the date of transfer, it’s in the seller’s best interest to have inspections and remedial work completed before the purchaser takes occupancy.
Most banks now request a copy of these certificates for bond clearance, making early preparation a wise choice.
Visit our Facebook Page or Youtube Channel where we also post relevant information for Homeowners.
