Immovable Property Law: the section 118(3) debate on historical municipal debts – some practical implications

by | Jul 22, 2018 | Conveyancing and Property law, Publications

In Jordaan and Others v City of Tshwane Metropolitan Municipality and Others, the Constitutional Court held that historical municipal debt (meaning municipal debt attaching to a property which is older than two years at the date of application for a rates clearance certificate) does not “survive” transfer, meaning that the purchaser or other successor in title cannot be held liable for debt by the municipality in any way whatsoever after transfer.

This has been a ground-breaking development in South African Immovable Property Law.

This seems fairly straight forward, but what does this mean practically? There are actually a number of “knock-on” effects.