PROPERTY TALK
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For the Seller
There has been a recent change regarding Rates and Taxes for Sellers. The previous process involved properties that
were sold to have their Rates and Taxes paid up by the Seller until the next Municipal Financial Year end. Traditionally
this was end of June every single year. This was a requirement before a Rates Clearance Certificate was issued to allow
the Seller to effectively sell and transfer their property over to the Buyer.
This would mean that if you sold your property in September 2017; you would be liable for the Rates and Taxes until
End of June 2018 in order to have the transfer take effect.
A changed has been applied to this ruling where the Seller will only be liable for the Rates and Taxes up the date of
Registration/Transfer of the property into the Buyers name.
This process is managed by the attorneys representing the Seller.
The question of who is liable for old Rates and Taxes that could possibly be outstanding is still a tender topic and there
have been cases where people have proven that they cannot be held accountable for outstanding Rates and Taxes.
There have also been instances where it has been denied outright and remains a contentious topic.
The general Municipal guideline is that if the Rates
and Taxes are outstanding from a previous owner
and the period is within a 2 year period then the
outstanding debt would fall into the current owners
responsibility. There are exceptions to the rule which
is dependent on a few factors, but it is always wise to
seek legal counsel if this matter should arise.
Rates and Taxes are calculated based on the size of
the registered structure and is factored in by the size
of your plot, the size of your dwelling and the loca-
tion of your plot. This value determines how much
you would pay in your monthly Rates and Taxes.
Generally, properties with less structures on and in more rural lying areas tend to have lower values for the reason
that there are possibly less municipal services available on the land and how the land is used (zoned). Obviously if you
are generating an income off the land then you would be susceptible to a higher rate than just open land .
For more advice on property options and
the due process of buying,
selling and investing…
Marc van Heerden
Cell: 073 198 9369
Tel: 041 360 0365
[email protected]
www.sothebysrealty.co.za
Each office is independently owned and
operated
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