21/08/2023
Did You Know?
Certificate of Compliance vs Clearance Certificate
A. Certificate of Compliance (COC)
1. The Seller of the property need to appoint a Certified Electrician or Gas Specialist which ever is applicable to do the relevant inspections of the property electrical or gas systems.
2. This process serves as proof that your property's electrical or gas installations are safe, up to code and compliant with industry standards.
3. This is a legal process for any property transfers.
4. Should there be any non-compliance, the seller needs to fix the items that need repairs before being issued with a COC.
2. Should there be an electric fence same rule applies unless the property is in an estate or complex.
Without this process being performed by a Professional your transfer process will be halted.
B. Clearance Certificate (CC)
1. Here we address Clearance Certificates for the HOA/Body Corporate, which the seller needs to be aware that should you owe Levies or any utilities to these two bodies, until you pay the arrears your transfer will be delayed. It is therefore prudent for a seller when planning to sell a property to consider such matters as you will not be issued with the CC if in arrears.
2. Same thing applies with the Municipal Rates and Taxes bill. You owe the Municipal nothing moves until arrears are paid.
3. Over and above this the Municipality bills the seller a 3months rates and taxes in advance, for the Transfer period. Should all go well within that 3months and there is monies due to you as seller a refund is made through your conveyancers.
4. Should you be compelled to sell your property for circumstances beyond your control and you also owe the HOA, Body Corporate, Municipality or even the Bond Holder Institution, you may approach your conveyancing firm, when you have a good offer, for a Bridging Finance. Please note they may attach some conditions to such financing, but there is always a way out.
5. Very importantly if things are not working
