When it comes to buying or selling property, various documents and certificates play a crucial role in ensuring a smooth and legally compliant transaction. Two of the most essential documents in this context are the Clearance Certificate and the Certificate of Compliance (COC). While they may sound similar, they serve distinct purposes. In this article, we will delve into the key differences between a Clearance Certificate and a COC for property purposes.

Clearance Certificate

A Clearance Certificate is a document issued by the municipality that has jurisdiction over the district where the property is located. Its primary purpose is to certify that the seller of a property has no outstanding tax liabilities/municipal accounts related to the property. In essence, it ensures that the property's financial obligations, such as property taxes, have been paid up to date. It needs to be issued before lodgement of the documents at the Deed’s Office, as it is one of the document’s the conveyancer has to lodged. It will also have a certain time period for which it is valid. If the time period lapses before the property has been registered in the Deed’s Office, a new Certificate will have to be obtained.

Certificate of Compliance (COC)

A Certificate of Compliance (COC) is a document issued by a qualified inspector that certifies that a property complies with specific building and safety regulations. The COC focuses on the physical condition and safety of the property, ensuring that it meets all the necessary standards and codes. This certificate is required when a property is being sold and when certain modifications or renovations have been made.

Different types of COC’s required:

1. COC for Electrical Compliance;
2. COC for Plumbing Installations;
3. COC for Beetle Certificates (only in certain provinces);
4. COC for Gas Installations;
5. COC for Solar Installations.

In summary, a Clearance Certificate and a Certificate of Compliance serve distinct purposes in property transactions. The Clearance Certificate primarily deals with financial matters, confirming that all property-related taxes and accounts have been paid by the seller. On the other hand, the Certificate of Compliance focuses on the physical condition and safety of the property, ensuring it meets safety regulations. Both certificates are crucial in ensuring a transparent and legally sound property transaction. Buyers and sellers must be aware of these differences and comply with the requirements of their local jurisdiction to avoid any complications during property transactions.