Do you know who is responsible for the Certificates of Compliance when buying and selling a property?
To ensure that a property is in good order the following Certificates of Compliance are required when selling a property:
1) Electrical Certificate of Compliance: Ensures that all electrical work conforms to regulation standards and is valid for 2 years. This excludes appliances such as aircons, stoves, swimming pool motors etc.
2) Entomology Certificate: Confirms that there are no beetles eating into the wooden structures. Valid for 3 months only. This is generally requested in the purchase agreement and is recommended.
3) Electrical Fence Certificate: If there is an electric fence installed, it requires separate certification from the rest of the electrical grid.
Water Installation Certificate: Ensures that water regulation conforms to National Building Regulations which is valid for 6 months. This certificate is often omitted as legislation varies for different provinces.
4) Gas Certificate of Compliance: Ensures that all gas installations are in order, such as gas-powered stoves, fires and geysers and is valid for 5 years.
5) Municipal Approved Architectural Drawings: These are also required for any property where changes or additional buildings were erected on the property. These must be provided at the buyer’s request and are very often demanded by the banks for bond approval.
The seller is required to obtain and pay for these certificates, before the transfer of the property. However, there may be exceptions when the buyer pays upfront, with the agreement that the costs will be deducted from the seller’s profit. This can be organized through the transferring attorneys via a letter of undertaking.
To determine the value of a home loan you may qualify for and for excellent advice on the correct documentation required to ensure that the transfer is processed smoothly, please contact:
Martin 082 447 3463
Kim 079 835 1476