Avoid nasty surprises – is your new home compliant?

You’ve signed the Offer to Purchase on your dream home and you can’t wait to move in once the home has been transferred into your name. But this won’t happen unless certain compliance certificates that ensure minimum safety requirements have been met are in order, says Mary Lindemann, Operations Executive, BetterBond.

“The three most important certificates when buying a new home are for electrical, gas and electric fence compliance,” says Lindemann.

The seller should be able to provide an electrical compliance certificate (ECC) which confirms that the home’s electrical installations meet safety standards. This certificate covers distribution boards, wiring, earthing, bonding, satellite dishes, outlets and switches. It can be transferred from one owner to the next if there were no alterations to the installation after the certificate was issued.

The seller also needs to provide a gas compliance certificate (GCC) which proves that every fixed gas installation has been inspected and approved as safe for use. This certificate, governed by the Occupational Health and Safety Act, provides peace of mind that there are no potential leaks, that the gas installations have been correctly positioned and that there is suitable ventilation in the home to ensure that the gas can be used safely. Installations should be inspected every five years.

The seller must also provide an electrical fence system compliance certificate (ECC) if applicable. This certificate, valid for two years, states whether the fence complies with safety requirements.

If you suspect your new home could be at risk of a wood-destroying insect infestation, or if you live in a coastal area, request a borer beetle certificate (BBC). Although not a legal requirement, it can be included as a condition of the sales agreement.

Lindemann adds that if anything needs to be repaired to obtain these certificates, the seller will need to carry the cost.

Some municipalities, such as the City of Cape Town, require a plumbing certificate of compliance. This certificate confirms that the installation complies with the relevant bylaws, and that there are no cross-connections between drinking water and any greywater or ground-water systems, says Lindemann. It will also certify that the installation conforms to national building regulations and that the water meter is registering. The seller must consult with a qualified and registered plumber who will conduct the inspection and issue the certificate so that transfer can take place, she says.

Although the onus rests on the seller to request inspections for the respective compliance certificates, the buyer is advised to check whether the assessments have been done by accredited service providers. “If the assessment is not done properly, there is a possibility that the compliance certificate will be invalid. This could create additional costs for the seller, who will then have to appoint a new service provider, and delay the transfer of the home to the new owner.”

All compliance certificates must be issued after an inspection by a registered professional. That being said, the buyer should never take things at face value, cautions Lindemann. “Although the seller is required to disclose any defects or potential safety risks, it’s advisable for a buyer to do their own home inspection. This is usually at the buyer’s own cost, but it does offer some assurance that there will be no nasty surprises once the sale goes through.”

While compliance inspections are usually done before the transfer of the home to the new owner, the buyer can include them in the conditions of sale as part of the Offer to Purchase, advises Lindemann.

Other certificates required when buying a home include the tax clearance certificate issued by SARS (South African Revenue Service) once it has received the transfer duty. “This is the property tax that is payable to SARS for properties valued at more than R1.1 million.”

Furthermore, the municipality issues a rate clearance certificate for the property to confirm that the seller does not have any outstanding rates due on the property. This must be issued before the transfer can take place.

“While it may seem like an administrative headache to do these mandatory inspections for the required compliance certificates, they do provide legal assurance that your new home is safe and habitable,” concludes Lindemann.

Writer: Aithne Molotsane