Clued up on compliance? Ensure you have obtained these five certificates
Before any property transfer is registered, South African law requires up to five compliance certificates to be obtained.
This applies whether you are investing in conventional or sectional title property. We give you a guide to what industry experts call 'the big five' of compliance certificates.
This applies whether you are investing in conventional or sectional title property. We give you a guide to what industry experts call 'the big five' of compliance certificates.
Mike Greeff, CEO of Greeff Christie's International Real Estate, offers his advice on compliance certification, "Having all the required compliance certificates is not only a legal requirement but also gives you the peace of mind knowing that the property is guaranteed to meet minimum quality and safety requirements.
Enlisting the help of a reputable agent will definitely make the compliance process easier."
Enlisting the help of a reputable agent will definitely make the compliance process easier."
Electrical
This states that the electrical installations on the property are of the proper safety standard and this certificate is governed by the Occupational Health and Safety Act.
Legislation dictates that this certificate has to be less than two years old at the date of the transfer and should be issued after the lastest alterations were done. This certificate is mandatory for a transfer and cannot be waived by either party.
Legislation dictates that this certificate has to be less than two years old at the date of the transfer and should be issued after the lastest alterations were done. This certificate is mandatory for a transfer and cannot be waived by either party.
Electric fencing
This certificate is proof that the electric fencing on or around a property complies with required safety standards and is also governed by the Occupational Health and Safety Act. There is no stated validity period set out for this certificate and the seller is deemed to have complied with legislation if they are able to present a certificate of compliance prior to transfer.
The only time the seller is required to provide a new certificate to the purchaser is in the event that changes to the installation were made after the last certificate was issued. In a sectional title situation where the fence is on common ground, the certificate of compliance would be held by the body corporate.
The only time the seller is required to provide a new certificate to the purchaser is in the event that changes to the installation were made after the last certificate was issued. In a sectional title situation where the fence is on common ground, the certificate of compliance would be held by the body corporate.
Gas
Any gas installation on the property needs to comply with the Occupational Health and Safety Act and the safety standards prescribed by it. While there is no specified validity period for this certificate, a new certificate of compliance is required every time the property is transferred.
Water/Plumbing
This certificate covers the water installation on the property and ensures that it meets municipal and building guidelines. This certificate is only applicable to transfers that happen within the municipal jurisdiction of the City of Cape Town and is required every time there is a transfer of ownership. Contracting parties cannot waive the requirement of this certificate and the City of Cape Town requires that it be submitted to their offices before any transfer occurs.
Beetle
This certificate gives the buyer the assurance that any accessible wood of permanent structures is free from wood-destroying beetles. While not prescribed by law, the practice of obtaining this certification has become common practice over time and parties contractually agree to the validity period of the certificate once it is issued.
While the contracting parties may agree to waive this certificate it may be required by the purchaser's bank if they have applied for a bond.
While the contracting parties may agree to waive this certificate it may be required by the purchaser's bank if they have applied for a bond.
The obtaining and understanding of compliance certification need not be an intimidating task and are prerequisites to the successful transfer of ownership of a home.
25 Jul 2019
Author Greeff
