Tips to guide the Buyer & Seller
Rates & Taxes
1. Consult Attorney
2. Inspect Property
3. Notice to Bondholder
4. Invest of deposit
5. Cost liable for
6. Upfront Payment
8. Items included
9. Compliance Certificates
Clearance Certificate – City Council
In terms of legislation, the City Council has to provide a rates clearance certificate to confirm that all rates, taxes and services have been paid in full before the transfer of the property can be registered.
The clearance certificate must be lodged with the Deeds office.
The Transferring Attorneys obtains clearance figures which is calculated of projected rates and services in advance and any arrear amounts owing.
Clearance certificates issued are valid for a specified period and thus registration must take place before the expiry thereof.
The Seller is liable for the payment of the clearance figures due to the City Council for the issuing of the clearance certificate. The seller is entitled to a reimbursement of the pro rata amount paid in advance from date of registration.