Property Thought Of The Week - Historical Municipal Debt Not For Buyers Account
The Constitutional Court has ruled that property owners can no longer be held liable for historical municipal debt incurred by previous owners on their property. This puts to bed once and for all, the confusion regarding the issue.
Once ownership is transferred in a Deeds Registry, the local authority cannot demand a new property owner to settle historical debt or suspend municipal services due to outstanding municipal debt.
The metropolitan municipalities of Tshwane and Ekurhuleni launched the appeal application to the Constitutional Court when the Pretoria High Court made a similar ruling. This judgment boosts confidence in the property market and reinforces South African property rights as enshrined in our Constitution. The said municipalities and Minster of Cooperative Governance and Traditional Affairs, Des van Rooyen, were ordered to pay the costs for the appeal application.
For more information, contact STBB Attorneys at info@stbb.co.za.