Is a Borehole Certificate Required When Selling Your Property?

Borehole certificates are not mandatory when selling property, but sale agreements may require them.

It is not a formal requirement that a seller provide a purchaser a “compliance certificate” concerning a borehole when a property is sold.  The seller and the purchaser may determine in the sale agreement if any certificates in respect of the borehole will be required before registration and who will be liable for the costs.  However, it is noted that most financial institutions will require certain certificates when approving a bond grant.

1. Certificates and / or tests which may be required (if agreed upon):

Yield test: The yield test measures how many litres the borehole delivers per hour.

Water quality test: The water quality test determines whether the water is hygienically safe for human consumption.  

Even though the above-mentioned certificates are not always required in terms of the agreement of sale, it is still important for the registered owner to ensure that he/she complies with the Local Authority’s By-Laws dealing with boreholes aiming at a sustainable, safe, and controlled manner of exploitation of underground water.  

2. Borehole regulations you need to know

Putting in a borehole on a property is often an attractive option for owners as it provides a convenient and cost-effective source of water. But before drilling for water, be sure to comply with all relevant regulations to avoid unpleasant penalties.

2.1        Signage / Cover / Contamination

The owner of a property with a borehole must ensure that every terminal water fitting and every appliance which supplies or uses the water is clearly marked with a weatherproof notice, which will be acquired when an owner registers his or her new borehole. This notice indicates that the water is unsuitable for domestic purposes.

An official sign, clearly indicating the borehole registration number, must then be erected on the outside of the property, clearly visible to the public thoroughfare.  It is important to note that no sign, other than the official notice received, will be valid to indicate the existence of the borehole.

You need to ensure that your borehole is properly covered so that no person or animal can fall into it and sustain injuries. If any person or animal is injured in this manner, you may be held liable for damages.

You also need to ensure that your borehole is not being contaminated by any source, as this will lead to the groundwater source (from which your borehole draws water) being contaminated too. Most municipalities regulate this in their Health Bylaws.

2.2        Restrictions and Management : Should I license/register my borehole?

Under the Water Act of South Africa (Act 36 of 1998) groundwater is not a privately own commodity and the Department of Water and Sanitation is the custodian of our countries water resources.

2.2.1   General Authorisation Water Use

Thus, all water that is used for commercial purposes needs to be either registered under a general authorization or a water use license application needs to be lodged prior to use.

A person who owns or is lawfully living on land and is using water from a groundwater source (i.e. a borehole) can use the amount of water specified in Table 1.2 of the General Authorisation published in Government Notice 399, published in Gazette 26187 on 26 March 2004 (which is still applicable today).

The amount that you can use is measured in cubic metres per annum and is calculated based on which area (or ‘zone’) the property is located in, and the size of the property (measured in hectares), provided that the water use concerned does not impact on the water resource, or other people’s land or water use, is not excessive, and is not detrimental to other users and the health and safety of the public.

Essentially, if you are using water under this General Authorisation, you only need to register this water use with the Department of Water Affairs and Forestry if you use more than 10 cubic metres from a borehole on any one day, or you store more than 10 000 cubic metres of water per property. If your use or storage capacity is less than this, you don’t need to register.

2.2.2 Schedule 1 Water Use

However, should the water be used for domestic purposes, the use falls under Schedule 1 of the Act and thus, no registration at the Department of Water and Sanitation is required.

Depending on the jurisdiction of the property, an owner may be required to obtain the permission of the municipality before drilling a new borehole. For example, this is the case in Ekurhuleni Municipality in terms of section 85 of the Ekurhuleni Municipality’s Water Bylaws. You must give the City of Cape Town at least 14 days' notice before drilling a borehole and await their approval before proceeding. The notice must include the borehole's location, the purpose of the groundwater, and your name, ERF number, and municipal account number.

If you have an existing borehole on a residential property, you need to need to register the borehole within the Ekurhuleni Municipality jurisdiction but not within the Johannesburg Municipality. However, in both cases, you need to notify the municipality of the fact that you draw water from your borehole. Check with your municipality to be safe. The City of Cape Town municipality requires property owners who have a borehole or wellpoint on their property, to register it with the City. To register an existing wellpoint or borehole, send an email to borehole.water@capetown.gov.za  and include: (i) your name and contacts details; (ii) the address and erf number of the property; (iii) your City of Cape Town account number; and (iv) confirm whether you are registering a wellpoint or borehole.

The owner of a property also needs to ensure that the borehole is properly covered so that no person or animal can fall into it and sustain injuries. If any person or animal is injured in this manner, an owner may be held liable for damages.

It is also the responsibility of the owner to ensure that the borehole is not being contaminated by any source, as this will lead to the groundwater source being contaminated too.

The Government Gazette is used by the government as an official way of communicating to the public any changes to legislation, and therefore property owners can find relevant information there. However, should an owner be unsure of the regulations relating to them, it is also possible to contact the water department at the relevant local council for information.

2.2.3 Licensed Use

For all types of uses, and all amounts of usage not covered by Schedule 1 and the General Authorisation, you need a water use licence. This is granted by the Department of Water Affairs and Forestry after a strict application process.

2.2.4 Responsibility for the quality of the water

The owner of the property is responsible for the water quality and should have the quality of your borehole water tested regularly, to ensure that it is safe to drink and to use for other households and/or commercial purposes. Many municipalities such as the Municipality of Johannesburg, empower themselves through their Health Bylaws to call for particulars of the water source (details of the borehole), proof that the water quality is sufficiently safe, and some municipalities (such as Johannesburg Municipality) even require that a certificate be submitted annually (or when requested by a Health Officer).

2.2.5 Can the municipality install a meter and charge the owner for excessive usage?

The Municipality of Johannesburg does not charge owners for the water drawn from the borehole. Owners might however be charged for sewer generated based on the water drawn from the borehole.

Ekurhuleni Municipality, however, reserves the right to install a meter to measure how much is drawn from the borehole, but does not charge anything for water drawn or effluent generated because of the borehole at present. Ekurhuleni’s bylaws do empower it to decide at a later stage that it can prescribe limits to the amount of water to be drawn from the borehole and impose a cost for same. It is advisable to always check with your own local municipality.