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The five compliance certificates

Before a property transfer can be registered there are five compliance certificates that need to be obtained - we take a closer look at these five certificates.

Electrical

  • Certifies that the electrical installation on the property complies with the required safety 
  • standards. 
  • Governed by the Occupational Health and Safety Act
  • The certificate must not have been issued more than two (2) years prior to the transfer date, provided there have been no modifications to the installation since being issued
  • Parties cannot contract out of this or agree to waive the requirement, they may agree that the responsibilities in respect of the installation be transferred from the seller to the purchaser (where the purchaser is undertaking a big renovation after transfer)
  • Regulations state property owner may not allow the transfer of ownership without the certificate. Parties may however agree in the Agreement of Sale that it is the purchaser’s responsibility to obtain it, provided it is done before transfer.

Electric Fence

  • Certifies that the electric fence installation complies with the required safety standards.
  • Governed by the Occupational Health and Safety Act
  • No set period of validity, but an existing certificate may be transferred by the seller to the purchaser. A seller need only provide a new certificate to the purchaser if a change was made to the installation after the current certificate was issued
  • Parties can contract out of this or agree to waive
  • Will apply to sectional title property where the body corporate is selling its property
  • The provisions of the Regulations have not yet been properly implemented since the Department of Labour is still in the process of approving qualified persons to perform inspections and grant certificates.

Gas

  • Certifies that the gas installation on the property complies with the required safety standards
  • Governed by the Occupational Health and Safety Act
  • No set period of validity. A new certificate must be obtained every time there is a change of ownership
  • Parties cannot contract out of this or agree to waive
  • Seller is required to obtain the certificate prior to transfer. Best for the inspection and remedial work to be carried out as soon as possible after the deal is concluded due to the bank and bond requirements and obviously prior to purchaser moving in, however, the parties can agree it is the purchaser’s responsibility to obtain.

Water/Plumbing

  • Certifies that the water installation at the property is in line with municipal and building guidelines
  • Governed  by the City of Cape Town water by-law. Only applicable to transfers within the municipal jurisdiction of the City of Cape Town
  • No set period of validity. A new certificate must be obtained every time there is a change of ownership
  • Parties cannot contract out of this or agree to waive. 
  • Seller is required to submit the certi?cate to the City of Cape Town prior to transfer

Beetle

  • Certi?es that the accessible wood of permanent structures on the property are free from certain wood-destroying beetles.
  • Not governed by any law, but a practice that has evolved over the years.
  • Parties agree contractually on the validity period of the certi?cate once issued.
  • Parties can contract out of this; however, if parties agree that no certi?cate is necessary and bank requires it for purchaser’s bond, then that is for the purchaser’s expense. 
  • Seller is required to obtain the certi?cate prior to transfer. Best for the inspection and remedial work to be carried out as soon as possible after the deal is concluded due to bank and bond requirements and obviously prior to purchaser moving in, however, the parties can agree it is the purchaser’s responsibility to obtain.




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