Selling? Is your home compliant?

BUILDING COMPLIANCE,A SELLER’S PEACE OF MIND

Our most recent listing has confirmed a need to provide sellers with information regarding their home’s compliance status. As agents, we deal with these issues on a regular basis and sometimes we forget that clients aren’t always as informed as we assume them to be. Changes in legislation on a national and local level in terms of compliance, as well as informed and legally protected consumers, necessitate this information be considered by all sellers PRIOR TO LISTING their property for sale. We hope you find our discussion below informative and insightful.

Rocky Coast Farm Cape St Francis, mid-winter trail walk

BACKGROUND

We often get asked what compliance certificates you require if you want to sell your property. The answer is that it’s become more complicated and not as straight forward as it used to be. Building standards and regulations have increased as well as national legislation along with their enforcement. Without stepping into the legal fray of discussing “voetstoots” and the Consumer Protection Act, I will ground this discussion around the certificates needed to get the sale transferred and registered, your home certified with an occupation certificate,  and what the repercussions are if you don’t.

The evolution of standards and enforcement means that the cost of getting a home compliant have increased and also takes longer than ever before. Professionals issuing the certificates, doing the inspections and signing off the remedial work must be registered and comply with governing bodies which means that those costs are transferred to the client. Having said that, we think it is money spent wisely and offers you legal protection.

On the opposite side of this equation sits the buyer, informed and fully aware of their rights. Gone are the days of sellers and their agents fleecing a purchaser out of money and into a substandard home. If you are the type of person who, like us, enjoys their sleep at night, we suggest you take the time to acquaint yourself with the discussion.

WHAT IS REQUIRED?

When we discuss compliance in terms of a property sale, there are two areas of focus, the Deeds Registry, where the transfer of ownership will be registered, and municipal building regulations. The certificates required by the Deeds Registry are non-negotiable and mandatory, they will be asked for by the conveyancing attorney attending to the transfer. These include:

• Electrical Certificate of Compliance

• Gas Compliance Certificate

• Electric fence System Compliance Certificate

• Water Installation Certificate (Western Cape Only)

• Beetle Infestation Clearance Certificate (if required)

(Please note, these certificates have a limited period of validity and will only be issued once the home is compliant)

The municipal building regulations and their approval which include having approved plans, engineering reports, occupation certificates, etc, are not required for the sale to be registered but will have an effect on the marketability of the property and the eventual sale price. Did I mention that buyers are informed and aware of their rights?! An analogy would be if you tried to sell your car without a roadworthy certificate, potential buyers would see it as a red flag at the very least and will definitely offer you much less than the asking price. Never mind the door you are leaving open for legal recourse after a sale has been completed should things go wrong.

WHERE DOES THIS LEAVE ME?

Firstly, we would recommend that you visit your local municipal offices, and request to see your building plans (if they have them, which they should) and confirm whether or not there is an occupation certificate for the property (which there should be). The reason why the occupation certificate is considered the Holy Grail is that it is the final certificate issued by the building inspector, which means that the building has passed all local and national building regulations. An OC’s absence would indicate that the compliance process, in terms of the local municipal building regulations, is incomplete.

Should you decide to list and sell your property without the necessary certificates in place, required by the municipal building regulations, the agent must inform the purchaser of such. The response we get from potential buyers range from using it as a bargaining tool during negotiations, to looks of disgust as if we are trying to sell them an inferior product. Either of which does not bode well for a sellers pocket and the agents reputation.

IS THERE AN UPSIDE?

Absolutely! Once your home is certified and you can provide us with the necessary documentation, you will undoubtedly receive a much higher offer should you not have an OC; the prospective buyer can in no way use its absence to negotiate a lower price. Additionally, the certificates having been issued by duly authorised professional, is a guarantee that minimum standards have been met, should a fault be found, the professional will be held accountable and not the seller or the agent. Selling your home with the correct paperwork in place may be a costly and lengthy process, but it is well worth it. Nobody wants to have sleepless nights and fork out thousands in damages claims after a property has been sold.

Seal Point Estates recommends you look at your property not only from a maintenance point of view when considering selling, but also from a compliance point of view. Should you have any questions or concerns, please contact Frieda or Jal. Seal Point Estates does offer a service to our clients where we will manage this process on your behalf. Visit our office on the corner of Niagara and Da Gama Road, Cape St Francis or email us at sealpoint@intekom.co.za or follow us on Facebook for all things Cape St Francis and property related.

All the best!

Jal & Frieda Rigaard