Many Agents do not inform buyers of the absolute necessity of a clause in the Offer to Purchase stipulating the provision of the "as built" plans and Occupation Certificate by the Seller prior to lodgement of the transaction.
The Occupation Certificate is an essential certificate forming part of the legal sale of the property and is a requirement of the National Building Regulations and Building Standards Act (1977). If not stipulated in the Offer transfer can be registered without any onus on the Seller to provide same or to pay the associated costs.
The Certificate is issued by the local Municipality and ensures that the following provisions have been met:
The issuing of such effectively confirms that the home is safe for inhabiting - insurers will now consider the house for coverage and the Municipality can accept a deposit to turn on water and electric services to the property (legally this cannot be done without a valid Occupation Certificate). The Certificate is issued when the house is first built but many sellers are not in possession of one and may, when selling years later, have to apply to the local Municipality for it.
There have been cases where the Court orders the demolishment of non-compliant structures as in the Supreme Court of Appeal case of Lester versus the Ndlambe Municipality. The court deemed this luxury dwelling an illegally built structure because no approved building plans were in place nor was an occupancy certificate procured and ordered that the entire structure be demolished.
Although a certain degree of duty lies with professionals such as architects, engineers or electricians, ultimately, it is the responsibility of the homeowner to obtain the Certificate timeously.