Buying property for the first time is usually as daunting as it is exciting because it’s known to be a lengthy, convoluted transaction, but the sale process has its own potential pitfalls to navigate and documentation to present, including an array of clearance certificates without which the transfer cannot take place.
A common, but potentially costly, mistake many sellers make is to leave this part of the process until the last minute as the application process itself is fairly quick and simple, however, says Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty. “Property owners are required by law to ensure that the property is legally fit for sale and for the transfer to take place, the conveyancing attorney must be in possession of the relevant Certificates of Compliance.
“In previous years only Occupancy, Electrical and Beetle Certificates were required, but the regulations have since been amended to include a Gas Certificate, Electric Fencing Certificate and Plumbing and Water Certificates as well as a rates clearance certificate from the municipality to show that their accounts are up to date.”
Geffen says that beginning the compliance process early, even before you place your home on the market, is especially recommended when selling older homes where faults, such as worn wiring, eroded conductors and faulty wall plugs may need to be repaired.
“Whilst the Compliance Certificates add another layer of complexity to the sales process, these legal requirements are designed to indemnify the seller, safeguard the purchaser’s investment and, most importantly, to ensure the safety of the occupants.
“And having the required work done over a period of time will also alleviate the strain on your pocket, especially if there is a significant amount of remedial work to be carried out. This can quickly add up to thousands of Rands, which an expense that is seldom budgeted for.”
Another compelling reason to begin the applications for COC’s as soon as possible is that most banks now also insist on these certificates before they will approve a mortgage bond which could delay or even scupper a sale as well as causing unnecessary stress for both buyer and seller.
Geffen concludes: “The best way to avoid the potential frustration and additional costs of last-minute repairs for compliance is through regular home maintenance which will also, safeguard your family.
“Ultimately, being prepared will always minimise stress and the possibility of unforeseen expenses and costly delays.”
