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Compliance certificates you need to sell a house
Almost every seller needs a valid electrical compliance certificate. Depending on the property and where it is, you may also need certificates for an electric fence, a gas installation, plumbing and wood-boring beetle. Your conveyancer (the attorney who handles the transfer) will tell you exactly which ones, but it helps to know early, because getting them can take weeks.
The electrical certificate
This one applies across the country. Under the Electrical Installation Regulations of 2009, an owner must hold a valid electrical certificate of compliance. When ownership changes, the transfer may not be allowed to go ahead if the certificate is older than two years. A registered electrician inspects the installation and issues the certificate if it passes.
- If you add to or alter the wiring, you need a certificate for at least that work.
- An older certificate does not simply expire with time outside a sale, but it will not do for a transfer if it is more than two years old.
- If the electrician finds faults, you must have them fixed before the certificate is issued.
If you have installed solar panels or a backup power system, that is an addition to the electrical installation and needs a certificate for the work. One source says the wiring and switchgear are covered, but not the panels themselves. Ask the electrician what they will certify. For more on solar, read solar and backup power when buying.
Electric fence, gas and plumbing
Electric fence. A certificate of compliance is needed where the system was changed, or the property changed hands, after 1 October 2012. An old certificate is not by itself a bar to transfer, but your conveyancer will say what the sale agreement requires.
Gas. If your property has a gas installation, a certificate of conformity applies when the gas system is installed or altered, and when the user or owner changes. No gas installation means no gas certificate.
Plumbing. In Cape Town, a plumbing certificate signed by a registered plumber is needed before transfer, under the City’s water by-law. It is not national law. Some other municipalities may ask for one too, so check with your municipality or conveyancer. Sources differ on how long a plumbing certificate stays valid, so ask what your municipality accepts.
Beetle certificate
There is no national law that requires a wood-borer or beetle certificate. It is a term of the sale agreement, common in the Western Cape and KwaZulu-Natal, and a bond lender may also insist on one. What the inspector must cover depends on the wording of the clause. If the buyer asks for it, a pest control company inspects the roof timbers and woodwork, and the sale agreement says who pays for any treatment needed.
Clearance certificates
These are not inspections of the house. They prove that your accounts are in order.
- Rates clearance. The Deeds Office will not register the transfer without a municipal certificate showing that the rates and other amounts due for the previous two years have been paid. The certificate is valid for 60 days. Many municipalities ask for a few months of estimated charges up front. The amount varies, so ask your conveyancer. Any unused money is refunded, sometimes slowly.
- Levy clearance. If you own a sectional title unit, the body corporate must confirm that all money due is paid or provided for. You do not issue this yourself: your job is to clear any arrears so that it can be issued. In a homeowners’ association, the requirement usually comes from the title deed conditions and the association’s rules.
Plan the timing
Certificates can take time. Electricians and plumbers have waiting lists, and a failed inspection means repairs and another visit. Start before you list your home, so that a buyer does not wait and your sale does not stall at the last step. Keep the paperwork together in one folder.
Also keep in mind that who pays for each certificate is a matter for the sale agreement. Sellers usually carry the cost of certificates, but check your offer to purchase.
What to do next
- Ask your conveyancer or agent for a list of the certificates your sale needs.
- Book the electrician first, since it is needed almost everywhere.
- Work out what you could keep after your costs with the estate agent commission calculator.
- Read getting your home ready to sell and the mandatory disclosure form.
This article is general information for South African readers, not legal, financial or tax advice. Rules and rates change, so check your own situation with an attorney, your bank or a tax practitioner. Our property calculators can help you work out the numbers.