Property Transfers: Electrical Certificates of Compliance & the Regulations

An Electrical Certificate of Compliance (“ECOC”) is a document that verifies that electrical installations such as the plugs, lights, DB-board, geyser and wiring in a home or building comply with the legislated requirements as detailed in the Occupational Health and Safety Act 85 of 1993 (‘the Act”).

In terms of the Act, a Seller is required to have a valid ECOC when selling his/her property. A conveyancer would need to obtain the original ECOC (not a copy) from the seller before transfer and registration of the property, which cannot continue and/or would be unnecessarily delayed if this is not done. The Conveyancer will in turn provide the Purchaser with the original ECOC after transfer, as legislation requires a property owner to be able to produce a valid certificate of compliance on request to an inspector.

In terms of the regulations, electricians no longer have to guarantee that the electrical system is in working order, but only that it is safe. As a result, there is a new requirement that a test certificate must accompany the ECOC.

The regulations further require that an electrician issuing the ECOC must register with the relevant authorities annually, not once-off as was previously the case. Therefore, to prevent unnecessary or additional costs and disputes, sellers should ensure from the outset that the electrician they use to obtain an ECOC is correctly registered with the Electrical Contracting Board of South Africa and the Department of Labour. You can verify this by requesting to see the contractor’s registration card and accreditation certificate.

The great news is that an ECOC is valid for a period of two years from the date that it was issued. Consequently, unless you have had alterations or extensions done to your property since obtaining a ECOC, the Certificate will remain valid for the two-year period.

Most Agreements of Sale have a standard clause with respect to the ECOC, which is that the Seller must provide an ECOC, alternatively a recent ECOC, before transfer of the property, failing which the Purchaser may attend to same and the Seller will be liable for the costs thereof.

In light of the new regulations and to prevent disputes from occurring, it is advisable to ensure that the Agreement of Sale also contains a specific clause which stipulates that the electrical installation/s must be in full working order if this is an important aspect of a sale. It should further specify who would be held responsible for any repairs thereto if it is found to not be so.

The seller should not incur any significant costs if the electrical installation has been maintained. If any repairs are required before an ECOC can be issued, the seller would need to affect and pay for these repairs to obtain the ECOC.

Unfortunately, in some instances, a Seller may provide a Purchaser with an ECOC, but the Purchaser could experience ssues that may result in the Purchaser believing that the ECOC could not possibly be valid. This could be prior to or after transfer of the relevant property.

Firstly, it must be understood that neither the Seller nor Conveyancer are experts in the electrical field and therefore cannot comment on the validity of an ECOC. The onus therefore rests with the Purchaser to obtain an expert opinion from the Electrical Approved Inspection Authority of Southern Africa to attend to an inspection and to provide a report that confirms whether or not the ECOC is compliant with the relevant Acts and Regulations.

If it is determined that the ECOC is non-compliant, then the Seller will be in breach of the relevant agreement and legislation. The Purchaser must then proceed in terms of the breach clause of the relevant agreement, allowing the Seller to remedy his breach within the allocated period of time. If the Seller fails to do so, the Purchaser may attend to obtaining the necessary ECOC and/or affect repairs and may claim for any damages sustained as a result of the Seller’s breach of said agreement.

Although many a "breach" clause reads that the Purchaser may cancel the agreement should the Seller not timeously remedy his breach of the agreement, a court will be slow to award such a judgement if transfer of the property into the Purchaser’s name has already been registered.

Please note that every matter is determined based on its own set of facts. Kindly contact our offices should you have any further questions on this topic.

You are welcome to contact us to draft an Agreement of Sale for your property transaction and/or if you need our assistance as Conveyancers in your property transfer to ensure that your rights are protected.