Electrical Certificates of Compliance (COCs) are a non-negotiable component of property transactions in South Africa—but in the commercial and industrial space, there is often a gap between what is legally acceptable and what is required in practice.
An Electrical COC is a legal document confirming that a property’s electrical installation complies with the Occupational Health and Safety Act. It is issued by a registered electrician after a full inspection of the installation.
How long is an Electrical COC valid?
From a legal standpoint, an Electrical COC does not expire. It remains valid indefinitely, provided no changes or additions have been made to the installation. Any alterations—whether minor or substantial—require a new or supplementary certificate.
The reality in transactions
In practice, however, the age of a COC can quickly become a sticking point.
In a recent transaction, the purchaser applied for bond finance and the bank required, as a condition of approval, that a valid Electrical COC be provided that was not older than six months. Despite an existing certificate being in place, it did not meet the bank’s internal requirements, necessitating a new inspection and updated certification.
Compounding this, the insurer involved in the transaction declined to insure the property due to the COC being older than 12 months, further delaying the process until a new certificate could be issued.
Who pays for a new COC in this scenario?
Legally, the seller is responsible for providing the purchaser with a valid Electrical COC at the time of transfer. However, when a bank or insurer imposes stricter requirements—such as insisting on a more recently issued certificate—the question of cost becomes a matter of negotiation.
In many commercial and industrial transactions:
- If the Offer to Purchase is clear that the seller must provide a valid COC, the seller may be required to cover the cost of updating it to meet the bank’s conditions.
- If the agreement allows for flexibility, or the property is sold “as is,” the purchaser may accept responsibility for obtaining a new COC.
- In some cases, the parties may agree to split the cost to keep the transaction on track.
Ultimately, the contract governs the outcome—but where it is silent, this can become a point of friction and delay.
What does this mean for sellers and buyers?
While the law does not prescribe a validity period, banks and insurers apply their own risk criteria. As a result:
- Banks may require a COC issued within the last 3–6 months as a condition of bond approval.
- Insurers may refuse cover or request updated certification where a COC is older than 12 months.
- Older certificates, while technically valid, can create delays and additional costs during transfer.
Commercial and industrial considerations
These challenges are even more pronounced in larger facilities, where electrical systems are more complex and frequently modified. Additions such as machinery, backup power, or solar installations can further complicate compliance and certification.
Conclusion
The key takeaway is simple: an Electrical COC may not expire by law, but in a live transaction, its practical validity is often determined by the bank and insurer involved.
For sellers, ensuring a recently issued COC upfront can prevent delays. For buyers, understanding these requirements early in the process can help avoid unexpected hurdles during financing and occupation.
