Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000)Chapter 11 : Legal Matters118. Restraint on transfer of property |
| (1) | A registrar of deeds may not register the transfer of property except on production to that registrar of deeds of a prescribed certificate— |
| (a) | issued by the municipality or municipalities in which that property is situated; and |
| (b) | which certifies that all amounts that became due in connection with that property for municipal service fees, surcharges on fees, property rates and other municipal taxes, levies and duties during the two years preceding the date of application for the certificate have been fully paid. |
| (1A) | A prescribed certificate issued by a municipality in terms of subsection (1) is valid for a period of 60 days from the date it has been issued. |
[Section 118(1A) amended by section 19 of Act No. 19 of 2008]
| (2) | In the case of the transfer of property by a trustee of an insolvent estate, the provisions of this section are subject to section 89 of the Insolvency Act, 1936 (Act No. 24 of 1936). |
| (3) | An amount due for municipal service fees, surcharges on fees, property rates and other municipal taxes, levies and duties is a charge upon the property in connection with which the amount is owing and enjoys preference over any mortgage bond registered against the property. |
| (4) | Subsection (1) does not apply to— |
| (a) | a transfer from the national government, a provincial government or a municipality of a residential property which was financed with funds or loans made available by the national government, a provincial government or a municipality; and |
| (b) | the vesting of ownership as a result of a conversion of land tenure rights into ownership in terms of Chapter 1 of the Upgrading of Land Tenure Rights Act, 1991 (Act No. 112 of 1991): |
Provided that nothing in this subsection precludes the subsequent collection by a municipality of any amounts owed to it in respect of such a property at the time of such transfer or conversion.
| (5) | Subsection (3) does not apply to any amount referred to in that subsection that became due before a transfer of a residential property or a conversion of land tenure rights into ownership contemplated in subsection (4) took place. |
[Section 118 substituted by section 44 of Act No. 51 of 2002]