STREAMLINING OF PROPERTY CLEARANCE PROCESS A REALITY

A significant streamlining of the property clearance process has taken place in the Cape Town Municipality – and this will speed up and facilitate home sales, says Lanice Steward, MD of Anne Porter Knight Frank.

 As from 15 July, the municipality has begun billing the annual property rates on a daily basis and, as a corollary to this, the full annual rates need no longer be paid by the buyer in order to obtain the clearance certificate formerly deemed necessary before transfer could be passed.

 The seller is now required to pay any outstanding rate arrears, the current month’s rates and the rates for the next 120 days following the application for the rates clearance certificate but, once they have been informed of the transfer, the municipal officials will divide what is owed on rates between the seller and the purchaser on a pro rata basis – and will refund the seller for any overpayment after the transfer registration date.

 Conveyancers, for their part, are now no longer expected to put through a pro rata adjustment on rates unless the deed of sale allows for the passing of risk at a date other than the registration of transfer date.  Steward said that although these changes have been implemented they are not as yet widely known – but they are, she said, a real improvement.

For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.