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 are in place. 

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

The electrical compliance certificate (ECC) 

The seller should be able to provide an 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. You can transfer this certificate from one owner to the next if there were no alterations to the installation after the issuing of the certificate. 

The gas compliance certificate (GCC) 

The seller also needs to provide a 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:

You should inspect these installations every five years. 

The electrical fence system compliance certificate (ECC) 

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

The borer beetle certificate (BBC)

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 BBC. Although not a legal requirement, you can include it as a condition of the sales agreement. 

As the seller, it’s important to remember that if you need to repair anything to get these certificates, you will need to carry the cost. 

Plumbing certificate of compliance

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. It also confirms that there are no cross-connections between drinking water and any greywater or ground-water systems. 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. The plumber conducts the inspection and issues the certificate so that transfer can take place. 

Although the onus rests on the seller to request inspections for the respective compliance certificates, as a buyer you should check whether accredited services providers have done the assessments. 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. You will then have to appoint a new service provider and delay the transfer of the home to the new owner.

A registered professional must issue compliance certificates

The buyer should never take things at face value. Although the seller must 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. It offers 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. 

Other certificates

Other certificates required when buying a home include the tax clearance certificate issued by SARS (South African Revenue Service) after you pay the transfer duty. This is the property tax that is payable to SARS for properties with a value of more than R1.1 million.

Furthermore, the municipality issues a rate clearance certificate for the property. This certificate confirms that the seller doesn’t have any outstanding rates due on the property. The municipality must issue this certificate before the transfer can take place.

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