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.
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.
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.
Your conveyancer will submit the RCC to the Deeds Office along with all the other relevant transfer documents.
The following are issues that can cause delays in obtaining rates clearance figures and RCCs:
Our attorneys provide expert legal services related to obtaining rates clearance certificates and conveyancing.
Contact us for more information.
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