ON TUESDAY, 29 AUGUST 2017, THE CONSTITUTIONAL COURT HELD THAT NEW HOME OWNERS ARE NOT LIABLE FOR HISTORICAL MUNICIPAL DEBT FROM PREVIOUS OWNERS.

The Court held that, in terms of Section 118(3) of the Local Government: Municipal Systems Act 32 of 2000, historical debt does not outlive transfer into a new owner’s name.

 

The Court held that Municipalities must collect monies owed to them from property owners in good time, and if the Municipality wishes to use a property as security for municipal debts it must do so prior to the property being transferred into name of the new owner.

It is important to note that previous owners will remain liable for municipal debts, even after the property has registered into a new owner’s name.

© 2016 by Phillip Silver Mathura Inc.