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Property Compliance

The difference between RCD certificates and the seller’s warranty

The difference between RCD certificates and the seller’s warranty

The difference between RCD certificates and seller’s warranty

When purchasing a property, especially in Western Australia, understanding the distinction between an RCD (Residual Current Device) Certificate and a Seller Warranty can save buyers from unexpected costs and legal headaches.

What Is an RCD Certificate?

An RCD certificate is a formal document issued by a licensed electrician confirming that the property’s electrical safety switches (RCDs) are installed and compliant with current regulations. These devices are critical for preventing electric shock and fire hazards.

 What Is a Seller Warranty?

A seller’s warranty is a contractual statement—often included in the sale agreement—where the seller declares that the property complies with relevant safety standards, including RCD requirements. However, this is not a substitute for a certified inspection.

The Risk for Buyers

If a buyer relies solely on the seller’s warranty and later discovers the property is non-compliant:

  • They may face significant costs to rectify the issue post-settlement.
  • The process to claim compensation from the seller can be lengthy, complex, and uncertain.
  • In some cases, the seller may dispute liability, leaving the buyer to foot the bill.

Best Practice for Sellers and Buyers

  • Sellers: It is highly recommended to provide a valid RCD certificate, unless the property is brand new and covered by a builder’s warranty or compliance documentation.
  • Buyers: If only a warranty is provided, consider arranging your own RCD inspection prior to settlement. The cost is minimal compared to the potential expense of post-sale repairs or legal action.

Final Thought

Electrical compliance is not just a legal requirement—it’s a safety issue. Buyers should never assume that a warranty equals proof. A certified RCD check offers peace of mind and ensures the property meets safety standards from day one.