FUTURE RATES IN CLEARANCE CERTIFICATES: NOT PERMITTED SAYS SYSTEMS ACT
Nelson Mandela Bay Municipality v Amber Mountain Investments 3 (Pty) Ltd (576/2016)  ZASCA 36 (29 March 2017)
Local authorities usually include a certain amount of future (estimated) rates when issuing figures payable for a rates clearance certificate to be issued. This is generally assumed to cover the seller’s future rates liability from the date the certificate is issued up to the time of transfer. In this instance, the municipality charged the rates payable for the full financial year. The question addressed here was whether, for purposes of issuing a rates clearance certificate, the seller of immovable property could legally be held liable to pay the full annual rate on the property or only the rates calculated until the property is transferred.
STBB’S STSMA REFERENCE GUIDE
In this, the twenty-ninth set of notes for your STSMA Reference Guide, Prescribed Management Rule 8 is discussed.
Prescribed Management Rule 8
(N.B. Print in landscape)