Certificates of compliance – Beetle


Beetle Certificate 

A beetle certificate is not a requirement of law, although it is regularly included in agreements in the coastal provinces to protect the purchaser of a property against buying a beetle infested property and the damage caused as a result. It is also regularly requested by the Banks as a condition before registration of a Mortgage Bond can take place due to the Bond Holder’s security being at risk in the event of the property being infested by beetles.

For example causing damage to wooden floors and other wood installations in the property which may be very expensive to replace. In practice, a certificate is usually accepted by the Purchaser and Financial Institutions if the certificate is not older than 6 months, although one needs to look at the specific wording of the beetle clause and the mortgage condition to determine whether an existing certificate can be transferred in term thereof.

In the event that the certificate is required as a condition in a Mortgage Bond as a prerequisite thereof, the cost of the certificate should, in the absence of an agreement between the Seller and the Purchaser that it will be for the account of the Seller.


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