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When you're in the process of buying a property in New South Wales, you may come across terms like "Occupation Certificate" and "Building Certificate" in the sale contract. Understanding these terms can be crucial for making an informed decision about your potential new home. In this blog post, we'll break down the key differences between the two and why each matters in the context of a property purchase.
What is a Building Certificate?
Definition
A Building Certificate is a document issued by the local council that confirms a building's compliance with all relevant laws, planning controls, and regulations.
When You Might See It
If you're buying an existing property, the seller may include a Building Certificate in the sale contract as a reassurance that the building is legally compliant.
Why It Matters
Having a Building Certificate can provide peace of mind that you won't be forced into making costly adjustments to the property after purchase due to non-compliance with legal standards. However, note that obtaining a Building Certificate is generally optional.
What is an Occupation Certificate?
Definition
An Occupation Certificate authorises the occupation and use of a new or significantly altered building. It certifies that the building has been completed in accordance with approved plans and is suitable for occupation.
When You Might See It
This certificate is more commonly associated with newer properties and will be mandatory before any building can be legally occupied.
Why It Matters
Having an Occupation Certificate ensures that the property you're interested in is safe and ready for living, meeting all the health and safety standards.
Key Differences at a Glance
- Mandatory vs. Optional: An Occupation Certificate is mandatory before occupying a building. A Building Certificate is optional but often used during property sales.
- Timing: Occupation Certificates are issued after the completion of new building works. Building Certificates can be issued at any stage of a building’s life.
- Scope: An Occupation Certificate focuses on health and safety for occupation. A Building Certificate focuses on broader compliance with planning controls and regulations.
What to Look for in a Sale Contract
- Check for Both: If the property has been newly built, it is critical that an occupation certificate be included in the sale contract and failing that, a building certificate.
- Verify Authenticity: Always make sure the certificates are genuine and issued by the relevant authorities.
- Consult a Legal Advisor: When in doubt, seek professional advice to understand the implications of these certificates on your property purchase.
Conclusion
Understanding the difference between a Building Certificate and an Occupation Certificate can save you a lot of potential hassle and extra costs down the line. Always be thorough when reviewing your sale contract, and don't hesitate to reach out to us for professional advice.
