The Constitutional Court ruled on Tuesday this week that new property owners cannot be held liable for historic municipal debts incurred by previous owners. Once ownership is transferred in a Deeds Registry, the local authority cannot demand a new property owner to settle historical debt or suspend municipal services due to outstanding municipal debt. The metropolitan municipalities of Tshwane and Ekurhuleni launched the appeal application to the Constitutional Court when the Pretoria High Court made a similar ruling. This judgment boosts confidence in the property market and reinforces South African property rights as enshrined in our Constitution. The said municipalities and Minister of Cooperative Governance and Traditional Affairs, Des van Rooyen, were ordered to pay the costs for the appeal application.
For more information on the judgment contact your attorney at STBB.