Due to the number of requests from Transfer Attorneys to only pay outstanding debt on properties for the two years preceding the application for the certificate, the balance on the property still due to the City of Cape Town will be dealt with by a new process as outlined below. This process will be managed jointly by the Rates Clearances and Debt Management Departments.
As from the 1st of May any one of the following measures will be used by a Municipality to enforce section 118(3) of the Local Government: Municipal Systems Act, 32 of 2000:
- Attempting to obtain full payment of all municipal debt from the seller.
- Requesting the seller to authorise the conveyancer to provide an undertaking that payment will be made of any unpaid debt, out of the proceeds of the sale of the property, if sufficient, upon registration of transfer in preference to any bond holder.
- Informing the purchaser that should there be any municipal debt outstanding against the property, such debt is a charge against the property, and that such purchaser shall be liable for such debt which is still owing after registration and that the continued supply of municipal services to the property may be affected while the debt remains outstanding.
- Interdicting the transfer of the property until the municipal debt is paid in full.
- Interdicting the distribution of the proceeds of the sale.