Imagine this: you've found your dream home, secured financing, and excitedly moved your family in. But the joy quickly fades when the municipality informs you that the property lacks a crucial document – an occupancy certificate.  This means you're occupying the building illegally and face eviction.

A recent South African High Court decision underscores the importance of securing an occupancy certificate before finalising a property purchase.  While the judgment clarified that sellers are not obligated to obtain or provide this document, the onus falls on buyers to protect themselves.

What is an occupancy certificate and why is it vital?

Issued by your local municipality, an occupancy certificate confirms that a building adheres to approved building plans and meets all necessary safety and regulatory standards. Without it, occupying the property is unlawful.  This can lead to a range of consequences, including:

• Eviction: The municipality can legally force you to vacate the building.

• Insurance Issues: Your insurance company may refuse claims if the property lacks an occupancy certificate.

• Municipal Fines: You may face ongoing penalties for non-compliance.

• Demolition Risks: In extreme cases, the municipality could order demolition if the building poses a safety hazard.

While temporary permission to occupy might be granted in rare instances, it's usually short-term and comes with strict conditions.

The Buyer Beware Principle

The High Court case involved buyers who inherited a property without an occupancy certificate. Despite the "vacant possession" clause in the sale agreement, the court ruled that the seller wasn't obligated to provide the certificate.  The buyers, as the new owners, were responsible for obtaining it.

How to Protect Yourself as a Buyer

To safeguard your investment and avoid potential headaches, Du Plooy Inc. recommends the following steps:

• Insist on an occupancy certificate: Before making an offer, request proof of an occupancy certificate from the seller.

• Include a clause in the sale agreement: Ensure the agreement stipulates that the seller must provide a valid occupancy certificate before transfer.

• Consult a property lawyer: An experienced property lawyer can help you navigate the legalities of purchasing a property and ensure all necessary documentation is in place.

Contact Du Plooy Inc. Today!

At Du Plooy Inc., we understand the complexities of property law. We can help you navigate the buying process with confidence and ensure you have all the necessary documentation, including the crucial occupancy certificate. Contact us today via [email protected] or [email protected] schedule a consultation and discuss how we can protect your investment.