Chief Registrar’s Circular No. 2 of 2018
Lodgement of Rates Clearance Certificates in terms of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000)
In terms of section 118 (1) of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000), a Registrar of Deeds is restrained from registering the transfer of property except on production of a prescribed certificate, issued by the municipality in which that property is situated, which certifies that all amounts that became due in respect of that property during the two years preceding the date of application for the certificate, have been fully paid.
2. In terms of section 118 (1A) of the Act, a prescribed certificate is valid for a period of 60 days from the date of issue thereof. However, it is a prevailing practice of certain municipalities to issue such certificates for a period longer than the prescribed 60 days.
3. Where a rates clearance certificate bears a period of validity longer that the prescribed period of 60 days, the Registrar of Deeds shall, subject to the provisions of section 4 of the Interpretation Act (Act No. 33 of 1957), only calculate 60 days of such period from date of issue of the certificate in line with section 118(1A) of the Act. The remainder of the period must consequently not be considered for the purposes of registration of transfer.
4. Chief Registrar's Circulars 10 of 2004, 11 of 2005 and 8 of 2008 are hereby withdrawn and substituted with this Circular.
5. Date of Commencement of the Circular
This circular will come into operation on 10 May 2018. The method of calculation referred to in paragraph 3 is therefore applicable to all deeds lodged on or after 10 May 2018.