This protects buyers from unknowingly inheriting a previous owner's unpaid municipal debt, but it also means sellers need to budget for settling outstanding rates before a sale can proceed. Understanding that a rates clearance certificate is a required, non-negotiable step helps set realistic expectations about the transfer timeline.
Source: Local Government: Municipal Systems Act 32 of 2000
Frequently Asked Questions
Who is responsible for obtaining a rates clearance certificate — the buyer or the seller?
The seller is generally responsible for settling outstanding amounts and obtaining the clearance certificate through the conveyancing attorney.
How long is a rates clearance certificate valid for?
It's typically valid for a limited period, commonly 60 or 120 days depending on the municipality, so timing the transfer process around its validity matters.
Can a property transfer be registered without a rates clearance certificate?
No — the Deeds Office will not register a change of ownership without a valid rates clearance certificate.