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30 days had expired, did in fact establish a valid purchase agreement
between the parties, and was therefore enforceable.

In your particular situation is means that due to your acceptance of
the mortgage quotation, and because no material provisions existed
regarding the provision of proof thereof to the seller, you have complied
with the suspensive condition and thereby established a valid purchase
agreement. However we advise that you consult with an attorney to
determine exactly whether you have indeed complied with the wording
of the suspensive condition and, if need be, approach a court to halt the
selling of the property to another buyer.

Can I be held ransom with a rates clearance
certificate for future municipal debts?

June 2017

“I’m in the process of selling my house. When I requested a
property rates clearance certificate from my municipality
they requested me to pay the estimated rates until the end
of their financial year, which would be months after my house
has been transferred to the new owner. Surely I can’t be held
ransom for these future rates just because I need a rates
clearance certificate?”
Property In short the answer according to a recent Supreme Court of Appeal

case is “no,” you cannot be held liable for payment of the property
rates for the entire financial year of the municipality when requesting a
rates clearance certificate.
In the case of Nelson Mandela Bay Municipality v Amber Mountain
Investments 3 (Pty) Ltd the municipality required Amber Mountain
Investments to pay rates from 1 July 2009 until the end of its financial
year, which would be a few months after the date of the registration of
the property transfer. Amber Mountain Investments paid the amount
of R2 281 014.68 under protest in order to obtain the rates clearance
certificate needed for lodgement at the deeds office to register the
transfer. However, they were not happy with the fact that they were
accountable for R1 066 532.00 more than was actually due and took
the municipality to court.

The question the court had to consider was whether a property owner
in the case of a sale of property, is liable to pay rates calculated until the
end of the financial year of the municipality or until date of registration
of the property transfer?

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