REVENUE CLEARANCE CERTIFICATES
Subject to Sections 118(1) and (1A) of the Act, the following shall apply to the issue of a revenue clearance certificate for the purpose of effecting transfer of a property to a new owner.
Revenue Clearance Certificates
What happens when the Municipality fails to furnish the Rates assessment within the 10 day period - is there a penalty? Who do we complain to of the delays. Will the Municipality be held liable for failure to assess and or issue rates clearance within the prescribed or a reasonable period.
Can someone elaborate - what do paragraphs 14 to 16 below mean? An assessment in terms of S118(1) of the Act will only be issued on request by the Conveyancer. The balance of the - ( debt, prior to the two years) - preceding the date of application of a certificate, shall remain as a charge against the property. The new owner - ( will not receive services) - on the property until the debt is paid or suitable arrangements are made to pay the debt. Are we to conclude that the purchaser will inherent the debt incurred prior to the two years incurred by previous owners and the purchaser will be denied services until this historical arrear is repaid? Does anyone have experience of this issue? I believe there maybe some judgments on this point?
This is all well and good if the Municipality adheres to its own timelines. Unfortunately in practice one has to grovel to get assessments, and even when they are done, it takes forever to get the RCC. It appears that applicants have to continually remind the Municipal employees to do their jobs.
It is regrettable that this directive not only ignores virtually all of the existing legislation and common law relating to the seller's obligations and how payments are to be apportioned, but the law relating to the purchaser's contractual and legislative obligations. The Council cannot refuse to supply the purchaser with services if there is money still owed by the seller. It seems like yet another judgment will have to be obtained - not that that will help because the councils seem to be determined to ignore the law and the rulings by the courts.
All accounts to accompany application - will this be the consolidated billing accounts?
What do they mean when they say that there will be no refunds if the sale is cancelled?
With regard to item 15 "The balance of the debt, prior to the two years preceding the date of application of a certificate, shall remain as a charge against the property", how does one establish what these debts are?
"17.The onus is on the Conveyancers to advise the purchaser accordingly." In terms of what law or regulation?Typical case of passing the buck and leaving it to us to try to explain the Metro's convoluted systems. I am not aware of any consultation with role players such as estate agents and conveyancers in the formulation of this policy. Perhaps it is time for the KZN Law Society to approach the Metro and take issue as part of their "trade union"function?
We have just received a rates assessment which includes an amount of R152408-53 owed by the previous owner/s! The current owner bought the property in 2007 and a search on the previous owner shows numerous judgments. We are investigating, but THIS IS JUST SO WRONG !!!