The selling - and purchasing - of a property can be an admin-intensive exercise, with many things to consider, but perhaps one of the most stressful - for both parties - is the issue of compliance.
It can be expensive for the seller (and as such needs to be incorporated into the thinking behind the selling price) while the buyer needs to make sure they understand what is covered by the regulations and what is not.
So, in order to ensure you know all the ins and outs of compliance, read on for what certificates are needed, what they cover and what they don't cover.
The seller is legally obligated to provide compliance certificates for:
Electrical
Beetle
Water
Gas
Electric Fence
Electrical:
What it covers?
What it doesn't cover:
Fixed appliance such as geysers, stoves, motors and fans
Under floor heating
Pool motors
Light bulbs
Note: the wiring to fixed appliances is covered under the compliance
Water:
What it covers:
Gas:
What it covers:
The certificate certifies that:
- There are no gas leaks.
- Emergency shut off valves have been installed in the correct positions.
- The gas piping, regulator and valves and gas appliances are in a safe working condition and not corroded.
For gas cylinder/s installed on the exterior of a property:
- Are at least 1 metre away from an airbrick, a door or a window.
- Are at least 2 metres away from a drain.
- Are at least 5 metres away from an electrical source of ignition, e.g. a motor, air-conditioner, distribution board etc.
- Do not exceed the maximum volume of gas allowed on a property, which is 100kg.
For a gas cylinder installed in the interior of a property (usually inside a cupboard):
- Is not situated directly below the hob.
- That the cupboard is vented to prevent the accumulation of gas.
- There are no electrical switches directly below the hob or in the compartment where the cylinder is positioned.
- There are no electrical switches within 200mm of the hob.
Beetle:
While not a legal obligation to sell, many financial institutions in the 1940s and 1950s - when beetle infestations were a major problem - would not grant a bond without a beetle certificate. The need for inspections were establish and this requirement was written into the Offer to Purchase and it became the seller's obligation to provide the Beetle Free Certificate.
Electric Fencing:
The regulations governing electrical fencing is separate to those that govern the electrical wiring of the property. Only a person accredited by the Department of Labour as an electric fence installer can issue a compliance certificate for an electric fence.
It is massively important to ensure that as the seller you have all the correct documents of compliance in order to complete the sale. it is recommended that you have the inspections done before an offer of purchase is made in order to no delay the sale and to attribute the costs to the eventual price of sale.
How long are certificates valid for?
Electrical certificate: Two years
Water: A new certificate will need to be issued each time a property is transferred.
Gas: Must be issued on change of ownership.
Beetle: Property must be inspected before sale.
Electric fence: Must be issued on change of ownership.
Handy Tips:
Compliance can be difficult to navigate, so make sure you do your research and prepare yourself against any potential issues. Here are a couple of tips to help save you money and admin headaches.
Do your inspections before a potential buyer is introduced to your property. This way you can include the costs of compliance into your eventual selling price. Compliance can be expensive and if done after the fact can leave you with a nasty surprise.
Removal over fixing. Sometimes it can be simpler, and more cost-effective, to remove something that may affect your property's compliance. Things such as garden lights, electrical installations to sheds / wendy houses, and fixed appliances such as garden installations are often done incorrectly and can be costly to rectify - rather remove these before a buyer is introduced to a property and save on compliance.