Real Estate Investor Magazine South Africa August 2013 | Page 36
STRATEGIES
BY RUI MARTO
OUTSTANDING
MUNICIPAL
s
M
On A Property
ost purchasers of immovable
property would be forgiven
for accepting that once they are in
possession of a rates clearance certificate, they are
guaranteed that there are no further municipal
debts outstanding over the property, once they take
transfer of same.
There have been increased incidences of
municipalities writing back or charging
historical debt not covered by the rates
clearance certif icate to new owners, either
after they take transfer, alternatively at a
time when they seek to re-sell the property.
Municipalities are also charging owners for
historical debt beyond the two year period
covered in a S118 clearance certificate. What is
the legal position of an owner or the purchaser
in this instance?
Conveyancing process - clearance
certificate
As par t of the conveyancing process, a
conveyancer is required to obtain a clearance
certificate contemplated by Section 118(1) of
the Local Government: ][?X?\[?\?[\X? ?? ?
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