Legal Articles

When you sell a property, you are legally required to obtain a rates clearance certificate from your local municipality.

The rates clearance certificate (RCC) certifies that all rates and other municipal charges which include electricity, water, sanitation, and/or refuse are paid in full.

Generally speaking, it can take between 3 and 6 months to transfer a property and the law provides that the seller pays all outstanding rates and taxes in full before the municipality will issue the RCC. The municipality may require that the seller pays such fees in advance of up to 6 months. The document issued by the municipality that contains the amounts payable to obtain the RCC is known as the rates clearance figures.

The reason for payment in advance is because there can be some delays in transferring the property to the buyer.

In this article, we answer all your questions about rates clearance certificates.

Rates Clearance Certificates – Your Questions Answered

How do I apply for an RCC?

As the seller, your conveyancing attorney will apply to the relevant municipality who will advise them on the outstanding amount payable to obtain the RCC. Additionally, there is a standard fee payable to cover the administrative costs related to issuing the certificate. Typically speaking, it takes between 7 and 14 days to issue the figures.

I have Received my Rates Clearance Figures, What’s Next?

Once you receive your rates clearance figures, it is up to you to make payment in full. Once you have paid, it will take approximately 7 days for the municipality to issue the RCC to your conveyancing attorney.

What Happens Once I Receive my RCC?

Your conveyancer will submit the RCC to the Deeds Office along with all the other relevant transfer documents.

What Causes Delays in Receiving Figures or the RCC?

The following are issues that can cause delays in obtaining rates clearance figures and RCCs:

• The meters have not been read in a long time
• A service that should be charged for is not being charged
• The meter numbers reflecting on the seller’s accounts are incorrect
• There are other accounts which are incorrectly links to the property
• There has been an illegal reconnection of supply that was originally terminated by the municipality
• The seller disputes the amount claimed by the municipality
• The seller has lodged an objection or appeal to the municipal property valuation which has not yet been processed
• The seller has requested a change of tariff which has not yet been processed

Van Deventer & Van Deventer Incorporated – Conveyancing Attorneys South Africa

Our attorneys provide expert legal services related to obtaining rates clearance certificates and conveyancing.

Contact us for more information.