Risk Mitigation

Risk Mitigation will assess whether buildings are compliant in terms of statutory and SANS 10400 regulations. We will regularise non-compliant buildings thereby protecting the interests of directors of property-owning companies.

Directors of companies face legal risks which arise from the use and occupation of buildings for which a certificate of occupancy has not been issued, in contravention of legislation.

Risks to directors of companies which own buildings due to the provisions of the Companies Act.

In accordance with the Companies Act No. 71 of 2008, directors must act in the utmost good faith and in the best interests of their companies which includes the need to exercise care, skill and diligence so as to promote company success through independent judgement. Failure to ensure that buildings owned by the company have been issued with a certificate of occupancy may render a director personally liable.

Risks to directors of companies due to the provisions of the National Building Regulations and Building Standards Act 103/1917 and the National Building Regulations SANS 10400

The National Building Regulations and Building Standards Act 103/1977 and the National Building Regulations SANS 10400 Part A refer to the issue of a certificate of occupancy.

Section 14 of the Act imposes a duty on the property owner to apply in writing and for the local authority to issue a certificate of occupation if it is satisfied that the building has been erected in accordance with the Regulations. It is illegal to use or occupy a non-compliant building, that is, a building which does not have a certificate of occupation.

Insurance Consequences

Insurance claims may be repudiated if buildings are being used or occupied illegally. Such buildings would be those not issued with a certificate of occupation.