Compliance Certificates When Selling Property: What the Law Requires

Selling a property involves more than agreeing on a price and signing an offer to purchase. Before transfer can be registered, the seller must usually produce a set of compliance certificates confirming that the installations on the property are safe and lawful. Some of these certificates are required by national regulation, one is a municipal by-law requirement, and one is purely a matter of contractual practice — and confusing them causes unnecessary cost, delay and dispute. Here is what each certificate covers, when it is required and who pays for it.

The electrical certificate of compliance

The electrical certificate of compliance (CoC) is required by the Electrical Installation Regulations, 2009, issued under the Occupational Health and Safety Act 85 of 1993. Every user or lessor of an electrical installation must have a valid CoC, issued by a registered person, certifying that the installation is reasonably safe.

Two validity rules are often confused. A CoC does not expire on its own: it remains valid for as long as no alterations or additions are made to the installation. But when ownership of the property changes, regulation 7(5) provides that the change of ownership may not take place on the strength of a CoC that is older than two years. So an existing certificate can be handed over on sale only if it is not older than two years and nothing has been altered since it was issued — otherwise a new certificate must be obtained. Additions such as new plugs, light circuits or a solar installation require the certificate to be updated or supplemented before transfer.

The gas certificate of conformity

If the property has a permanent liquefied petroleum gas installation — a built-in gas hob, gas fireplace, gas water heater or piped gas supply — a certificate of conformity must be issued by an authorised person under the Pressure Equipment Regulations, 2009, which also fall under the Occupational Health and Safety Act. A certificate is required after installation, modification or alteration of a gas system, and a new certificate is required when ownership of the property changes. Freestanding appliances connected to a portable cylinder by nothing more than a hose do not normally require certification, but any fixed installation does.

The electric fence system certificate

An electric fence has its own certificate, separate from the ordinary electrical CoC. Under the Electrical Machinery Regulations, 2011, an electric fence system certificate is required for systems installed or altered after 1 October 2012, and where premises with an electric fence system change ownership after that date, the seller must provide the certificate. Unlike the electrical CoC, an electric fence certificate is transferable to the new owner and does not lapse merely because time has passed — a new one is only needed if the system is altered. In sectional title schemes the perimeter fence usually belongs to the body corporate, which should hold the certificate for it.

The beetle certificate: coastal practice, not law

The wood-borer or beetle certificate confirms that the accessible timbers of a building are free of infestation by wood-destroying beetles. No statute requires it. It is a creature of contract that became standard practice in the coastal regions — particularly the Western Cape and KwaZulu-Natal, where infestation is common — and banks and buyers there often insist on it. In inland provinces such as Gauteng it is rarely required. Whether a beetle certificate must be produced, and at whose cost, depends entirely on what the sale agreement says, so read the clause rather than assume.

The water and plumbing certificate in Cape Town

Sellers in the City of Cape Town must comply with a further municipal requirement: under section 14 of the City of Cape Town Water By-law, 2010, a certificate from an accredited plumber must be submitted to the City before transfer, confirming among other things that the water installation complies with the by-law, that the water meter registers properly and that no rainwater or stormwater discharges into the sewer. This certificate must be obtained afresh for every transfer — a certificate from a previous sale cannot be reused. It is a Cape Town requirement rather than a national one; other municipalities may adopt similar by-laws, so sellers should confirm the position where the property is situated. In Tshwane and the other Gauteng metros there is currently no equivalent plumbing certificate requirement for transfers.

Who pays for compliance certificates?

In practice the position is straightforward:

• Standard sale agreements place the cost of obtaining the certificates — and of any repairs needed to achieve compliance — on the seller.
• The parties may agree otherwise on the contractual certificates, and the allocation of repair costs is often negotiated, but the statutory duty to deliver a valid electrical CoC on change of ownership cannot simply be contracted away.
• Sellers should use registered, reputable contractors: a certificate issued by an unregistered person is worthless, and fraudulent certificates surface regularly in disputes.

What happens if the certificates are missing or defective?

Non-compliance carries real consequences. Transfers are delayed while inspections and repairs are completed, and banks commonly refuse to register bonds until the required certificates are in place. Operating an electrical or gas installation without the required certificate is an offence under the Occupational Health and Safety Act regulations, and contravening the Cape Town Water By-law is likewise an offence. Insurers may also rely on the absence of a valid certificate when repudiating a fire or damage claim linked to a defective installation. And for sellers, a defective or dishonestly obtained certificate is a fertile source of post-transfer litigation: the voetstoots clause does not protect a seller who was obliged to deliver a compliant installation and did not.

We advise sellers to arrange inspections as soon as the property goes on the market, rather than after signature, so that repair costs are known before negotiations conclude. As part of our conveyancing services we check that every required certificate is in place before lodgement. If a compliance dispute has already arisen in your transaction, contact us for advice.