City of Johannesburg goes after indebted sellers

27 July 2015 - 09:06 By PENWELL DLAMINI

The City of Johannesburg is going after property sellers, who, because they have not settled their municipal debts, have incurred R1.82-billion in debt. A specialist firm of attorneys and consultants has been enlisted to ensure that all money owed on a property is paid before the property is transferred from an old owner to a new one.How it used to work is that the city issued the seller with a clearance certificate in terms of the Municipal Systems Act 32 of 2000 Section 118 (1).The clearance certificate was issued if the debt for the preceding two years was paid.Property sellers were then expected to settle the remaining debt beyond the two years through the proceeds of the sale.The problem was that, after concluding a sale that involved the South African Revenue Service, the bank and the deeds office, sellers disappeared and the city was left with debt which could only be attached to the property.The new owner would then be saddled with dealing with the city to clear a debt which he or she had nothing to do with.The spokesman for the city's group finance division, Stanley Maphologela, said this would soon be history."After the clearance figures are issued, our specialised firm will contact the relevant transferring attorneys or sheriffs advising them of the outstanding amounts."If payment is not effected to pay the full outstanding debt, the city will apply to the High Court of South Africa for immediate relief," he said.Maphologela said the court will give an order of how the city can recoup the money owed on the property."In order to avoid any future disputes between the seller, purchaser and the municipality, we advise that all estate agents or property transferring attorneys to educate potential or prospective buyers or amend their Offer to Purchase to state that the seller shall, on demand, pay all historic debts to the municipality before or on registration of the transfer," said Maphologela...

There’s never been a more important time to support independent media.

From World War 1 to present-day cosmopolitan South Africa and beyond, the Sunday Times has been a pillar in covering the stories that matter to you.

For just R80 you can become a premium member (digital access) and support a publication that has played an important political and social role in South Africa for over a century of Sundays. You can cancel anytime.

Already subscribed? Sign in below.



Questions or problems? Email helpdesk@timeslive.co.za or call 0860 52 52 00.