Council tightens debt recovery from property sellers
ALEXANDRA - The Joburg City Council is closing in on evasive property sellers who disappear without paying millions of rand in outstanding taxes and rates.
The city council is closing in on evasive property sellers who disappear without paying millions of rand in outstanding taxes and rates.
To recover this debt, the city council has engaged specialised attorneys and consultants to ensure that all collections are concluded before a property is transferred to the new owner. This action will be in accordance with the relevant Government Ordinance and Systems Act for sold properties.
The city’s finance department spokesperson, Stanley Maphologela, said after the debts on sold properties were determined, the specialised teams would contact relevant transferring attorneys or sheriffs advising them of the outstanding amounts.
“If payment of the full outstanding debt is not effected, council will apply to the High Court for immediate relief,” Maphologela said.
Maphologela added that in terms of the Municipal Systems Act, the city council would issue the seller a Clearance Certificate if the debt for the preceding two years was paid, but stressed that the city council was also empowered to recover all other outstanding money accumulated prior to the two years.
He advised that to avoid any future disputes between the seller, purchaser and city council, estate agents or property transferring attorneys should educate prospective buyers of this, and should amend their Offer to Purchase documents to state that the seller shall on demand pay all historic debts to the city council before or on registration of the transfer.
This he said would help clear the misconception that the Clearance Certificate excluded historical debt owing in service fees, surcharges on fees, property rates, municipal taxes, levies and duties for properties.
Details: Group Finance, Joburg City Council 011 358 3420.
