Page 9 - Nexia SAB&T Property and Tax Guide 2024

COMPLIANCE CERTIFICATES
The contract of sale is required to include clauses which deal with the Electrical, Beetle, Gas and Plumbing Certificate
(where applicable). The City of Cape Town: Water Amendment By-law, 2018 provides that the seller must, before
the transfer of a property, submit a plumbing Certificate of Compliance from a registered plumber (who must be
registered with CoCT), certifying that any water installation (including alternative water connections) conform to the
by-law and any National Building Regulations and Standards. Conveyancers attending to the transfer of a property are
required to ensure that the requisite compliance certificates are received well before registration at the Deeds Office.

ELECTRIC FENCE REGULATIONS
Regulation 12 of the “Electrical Machinery Regulations” require that you have an “electric fence system certificate
of compliance” if you install, add to, or alter an electric fence after 1 October 2012, or where there is a change of
ownership of the premises on which the system exists, if the change of ownership takes place after 1 October 2012.

DISCLOSURE OF LISTED INVASIVE SPECIES
The National Environmental Management Biodiversity Act (10 of 2004) requires that the seller of an immovable
property must, prior to the conclusion of the relevant sale agreement, notify the purchaser of such immovable
property, in writing, of the presence of listed invasive species on the property. The obligation and the duty to remove
could be negotiated between the seller and the purchaser.
BUILDING PLANS
The seller must ensure that all the buildings and structures on the property are approved by the relevant local
authority. Before a seller places his home on the market for sale, he should make sure the approved plans reflect
the buildings and structures on the property. It is best practice to include a clause in the sale agreement which
deals with the building plans specifically. The clause may state that the property is sold subject to the condition that
plan approval is obtained and provided to the purchaser prior to transfer, or that the purchaser acknowledges the
absence of approved plans and accepts the liability for the risks associated therewith expressly. The seller cannot
rely on the voetstoots clause to protect him in the event that plans are not approved, and he fails to disclose, as
this will be deemed to be a latent defect known to the seller.

OCCUPATION CERTIFICATE
An Occupation Certificate is a requirement in terms of the National Building Regulations and Building Standards Act
(103 of 1977), and is issued by the local authority. It ensures that, a building is fit for human occupation, by stating
that the roof has been inspected by a truss installer or engineer and is safe, that the plans were properly approved,
that all drainage and plumbing work has been certified, that the windows were approved by a Glazing Certificate, that
there is an electrical certificate of compliance, that any zoning or similar amendments have been completed, that an
engineering completion certificate from a structural or civil engineer stating the property is safe, has been issued,
and that, if the property has a thatch roof, that a Fire Certificate has been obtained. The Occupation Certificate is
essential, when applying for insurance on a property, or for a home loan / mortgage bond.

PROPERTY DISCLOSURE REPORT: CONSUMER PROTECTION
While it has always been best practice for sellers to provide a property defects disclosure document as part of
the sale agreement, the Property Practitioners Act (22 of 2019) makes this obligatory. The Regulations provide the
prescribed form for the report. It must be signed by all relevant parties and forms an integral part of the agreement.
The sale agreement should expressly state which of the parties will be responsible for the costs incurred to correct
any defects listed in the report. A property practitioner must not accept a mandate unless the seller has provided
him with a fully signed mandatory disclosure, in the prescribed form. The property practitioner must provide a copy
of this form to any prospective purchaser who intends to make an offer for the purchase of the property. Failure to
comply may result in the property practitioner being held liable by an affected consumer, and the Regulatory Authority
may take action against a property practitioner or impose an appropriate sanction.

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