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Who is responsible to ensure rates and municipal services are paid at date of transfer?

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11:39 am
July 22, 2010


justinclarke

Admin

posts 6

 
1

Please can you tell me who is responsible for ensuring that all municipal service accounts (water & lights, rates, sewage etc) are up-to-date at the time of transfer? Assistance is appreciated. Jeff

11:45 am
July 22, 2010


justinclarke

Admin

posts 6

 
2

The Seller is responsible for the costs but is the responsibility of the conveyancers to make sure it  paid.   The conveyancers have to request a rates assessment from the Rates Dept which then includes an estimate of the seller’s account relating to the electricity, refuse and water as well as rates.   The rates assessment issued is usually issued for a period of 4 months.   On registration the conveyancers then pro-rata the assessment, as all amounts paid prior to date of registration is for the Seller’s account and any rates paid from date of registration to the end of the assessment period is payable by the Purchaser.    This results in the Seller invariably ending up with a credit at the rates department, as they in the interim are still paying their accounts.   The Rates Dept should then pass this credit on to the Seller by way of their monthly billing system.

- reply thanks to AMC Hunter Attorneys – Hettie Ellis [Hettie@amchunter.co.za]Laugh



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Who is responsible to ensure rates and municipal services are paid at date of transfer?

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