Page 15 - Nexia SAB&T Property and Tax Guide 2025

this will be deemed to be a latent defect known to the seller. When a new residential
property is still under construction as at the date that the deed of sale is signed, draft
specifications with the builder for the completion of the house should be attached to
the sale agreement. Insert a special clause which states that the seller undertakes to
complete the dwelling in accordance with the specification and local building by-laws,
and that the seller undertakes to complete the dwelling for occupation on or before a
specified date. In addition, ensure that the builder is registered with the National Home
Builder Registration Council (NHBRC).

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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