Are you planning on selling your home? Holiday Home or flat? Have you paid your municipal rates account in full? There are so many questions that buyers and sellers have regarding the sale and purchase of a property or properties that it cannot be answered in a single article.
However, when dealing with a municipality one should have ones ducks in a row to use the colloquial lexicon. One issue that seems to constantly arise is the failure of the previous owners to settle their municipal accounts, this issue then becomes the problem of the new owner who is saddled with the debt raised by the previous owner.
Per section 118(3) of the Municipal Systems Act 32 of 2000, as amended Municipalities believe that they may declare a property executable for the debts of a previous owner even if such property has been lawfully transferred to a new owner.
Municipalities can also suspend services such as water, electricity and even garbage collection. The municipality will also reduce to issue a Rates Clearance Certificate and thus can hold up transfer costing one time and money.
The new Spatial Planning and Land Use Management Act (SPLUMA) was enacted in 2013 and certain sections of the Act will come into operation in mid-2015. SPLUMA is a framework act for all spatial planning and land use management legislation in South Africa.