Property Law: Property owners’ liability for historical municipal debts
Section 118 of The Local Government Municipal Structures Act protects the rights of the Municipality in respect of Municipal debts owed by property owners. This section created much uncertainty in matters where the municipal attempted to enforce its rights against property owners. Since 2012, the Supreme court of Appeal dealt with this issue in two separate cases in an effort to provide the correct interpretation of the Act.
Liability of Municipal Debt in terms of the Municipal Systems Act
Section 118 of the Municipal Systems Act (herein after referred to as “the Act”) states in subsection:
(1) “A registrar of deeds may not register the transfer of property except on production to that registrar of deeds of a prescribed certificate –
(a) issued by the municipality or municipalities in which that property is situated; and
(b) which certifies that all amounts that became due in connection with that property for municipal service fees, surcharges on fees, property rates and other municipal taxes, levies and duties during the two years preceding the date of application for the certificate have been fully paid... Read More