Buying and selling a property comes with a lot of paperwork. One of the most important documents is the Rates Clearance Certificate, also known as Rates Figures.
This is a document that proves that you, as the seller have your rates bill in full, and no amount is outstanding before the sale goes through.
Whether you own a freehold property or sectional title, you are required to obtain the certificate so that the conveyancer can present the document when putting the transfer through at the Deeds Office. The transfer of the property cannot go through without the submission of the rates figures.
What Are Rates Clearance Figures?
Section 118 of the Municipal Systems Act 32/2000, states that a Registrar of Deeds may only register the transfer of a property on the production of a rates clearance certificate which shows that all amounts owed in relation to the property two years prior to the application date for the RCC have been paid in full.
How to Get Your Rates Clearance Certificate
The appointed conveyancer will apply to the relevant local authority to issue the “Rates Clearance figures”. These figures are a breakdown of the outstanding debts. The conveyancer will request this outstanding amount from the seller. Once all outstanding and assessment amounts have been paid by the seller, then the RCC will be issued.
Where to Apply for Rates Figures
Rates Figures are obtained from the City Council, and they verify that the seller does not owe any money to the municipality for the two-year period preceding the date of application for the Rates Figures. A conveyancer can apply for the certificate from the following places:
Rates Clearance Certificate Johannesburg
- Apply Online: https://eclearances.joburg.org.za/
- Apply in Person: Thuso House Customer Service Centre, 61 Jorissen Street, Braamfontein
- Contact Number: 086 056 2874
Rates Clearance Certificate Tshwane (Pretoria)
- Apply Online: https://www.e-tshwane.co.za/
- Apply in Person: Lilian Ngoyi Street & Francis Baard Street
- Email: Deedstransfer@tshwane.gov.za
- Contact Number: 012 358 9999
Rates Clearance Certificate eThekwini (Durban)
- Apply Online: http://www.durban.gov.za/
- Email: eservices@durban.gov.za
- Contact Number: 031 311 4455
Rates Clearance Certificate Cape Town
- Apply Online: https://eservices.capetown.gov.za
- Contact Number: 021 400 1111
How Long Does It Take to Get a Rates Clearance Certificate
Normally it takes 7-21 days to process rates figures, but with the backlogs and issues at the municipality, it can take up to 6 weeks or even as long as 8 months.
Who Pays for the Rates Clearance Certificate?
After your appointed conveyancer obtains the rates figures that show any and all outstanding debt for taxes, water, sewerage, electricity, and refuse. The seller will have to pay for the outstanding rates. This amount must be paid to the conveyancer and not the municipality directly within 1-2 months.
The conveyancer will then transfer the funds to the municipality, which requires that rates figure to be paid with a trust cheque. Once you’ve obtained the certificate( which is valid for 60 days), the seller will no longer be required to pay the municipality. This means that the property is now ready to be registered in the buyer’s name, and the new owner can move in.
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