When clearance gets complicated, clarity matters.
Find straightforward, accessible explanations of South African municipal clearance figures, Section 118 and property-transfer delays. When figures are high, discover why a specialist assessment is safer than guesswork.
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Our work is focused on actual property transfers—not general municipal billing complaints. Start with the free assessment, explore the legal and media record, or learn about funding options. These are the principal action links, deliberately placed before the question library.
New Ventures Consulting & Services and related Livanos matters were parties to the litigation culminating in the Constitutional Court’s Jordaan decision. Read the MDS case history ↗ or read the judgment ↗. The Court did not endorse any commercial service or guarantee reductions.
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I have received high municipal clearance figures. What should I do?
If you are selling or transferring a property and the municipality has issued a surprisingly high amount, ask MDS to assess the figures before making payment or agreeing to a settlement. The earlier we receive the current document, the more opportunity there may be to evaluate your position before the clearance process becomes time-sensitive.
Send the clearance figures and the name of your transferring attorney to our free clearance assessment service . We will explain whether your matter is suitable for our assistance. Not every account qualifies for a reduction.
How quickly can MDS assess a matter?
We prioritise urgent property transfers and aim to assess new enquiries promptly once we receive legible, current clearance figures and enough background information.
The time needed to investigate, negotiate or conclude a matter depends on its complexity, municipal response times and document validity. We cannot guarantee a fixed number of days or a particular settlement. Early referral generally gives everyone more room to work.
Assessment time and settlement time are different. A first review may be much quicker than the process required to conclude an accepted matter. If your transaction has a deadline, provide the actual date, current figures and your conveyancer’s contact details. We can then discuss realistic next steps; municipal response times remain outside our control.
Do you charge upfront fees? How is MDS paid?
The initial expert assessment is free and without obligation. On matters we formally accept, MDS generally works on a success-based fee arrangement without an upfront professional fee, with the agreed fee linked to the outcome.
The engagement terms, including how fees are calculated and any costs outside MDS’s own fee, are discussed before you appoint us. Not every case qualifies. Municipal charges, conveyancing costs and independent third-party expenses are separate from the MDS fee unless expressly agreed otherwise.
A free assessment is not an offer to accept every matter. When a matter is accepted, the engagement letter should explain the success-fee calculation, any agreed special arrangement and who pays unrelated costs. Ask for those terms in writing before instructing MDS.
What are municipal clearance figures?
Municipal clearance figures are the amounts issued by a municipality in connection with a property transfer. They can include property rates and relevant municipal services, such as water, electricity, refuse and sanitation. The exact calculation depends on the account, the property and the applicable law.
The document is an important part of obtaining a rates clearance certificate. A high figure is not necessarily the correct final amount payable. It may need specialist review, particularly where older debt or complicated accounts are involved. View an example of clearance documentation .
What is a rates clearance certificate?
A rates clearance certificate (RCC) is the municipal certificate required for registration of a property transfer at the Deeds Office. Under section 118(1), it concerns amounts that became due during the two years preceding the application, subject to the legislation and facts of the matter.
It is not proof that every older municipal debt has been written off or settled. This is why figures should be assessed in the context of the whole transaction rather than relying on the certificate alone. View the certificate and clearance-figure examples .
Section 118(1A) provides a statutory validity period of 60 days from issue for a clearance certificate. That is different from any administrative expiry date on a quotation or clearance figures.
Do I only have to pay the last two years of municipal debt?
Not necessarily. The two-year requirement in section 118(1) relates to obtaining the clearance certificate; it does not automatically cancel legitimate older debt. Older amounts may remain recoverable from the person who legally owes them, subject to the applicable law and prescription.
The correct answer depends on who incurred the debt, when it arose and the type of transfer. Relying only on the two-year rule without considering the rest of the account can create serious risks. Read our explanation of Section 118 .
Why specialist advice matters: an amount required for the certificate, an outstanding seller’s personal debt and a recoverable secured claim are not interchangeable concepts. The right answer can change with the account history and transaction type.
What is historical municipal debt?
In everyday language, historical municipal debt means older unpaid municipal charges, often amounts that fall outside the two-year period used for the rates clearance certificate.
The distinction is who incurred the debt. Debt lawfully owed by the seller does not simply disappear when the certificate is issued. However, the Constitutional Court confirmed in 2017 that a new owner is not liable, through the section 118(3) charge, for debt incurred before transfer by a previous owner. Read about the Jordaan judgment .
Does Section 118 automatically give me a discount?
No. Section 118 is not a general discount, amnesty or write-off programme. A lower certificate amount is not the same thing as a full and final settlement of the legally recoverable debt.
Where reductions are appropriate, they must be achieved through lawful assessment and a properly documented outcome. MDS examines the account and the surrounding transfer circumstances before recommending how to proceed.
Read our explanation of why Section 118 is not a discount before assuming that a smaller clearance-certificate requirement represents a full and final resolution of historical municipal debt.
Who applies for municipal clearance figures?
Your transferring attorney or conveyancer will usually apply to the municipality for the clearance figures as part of the property transfer process. MDS works alongside the attorney when a high amount needs to be examined.
Please send us the current figures as early as possible. Their validity period and any approaching registration deadlines affect what can practically be done.
Which municipalities does MDS currently assist?
The City of Ekurhuleni is our primary area for new property-transfer clearance matters. We may consider matters in other municipalities individually, depending on the merits, documents and capacity available.
Please do not assume that we can take on a matter outside Ekurhuleni without a prior assessment. Our current focus is on substantial clearance figures arising from property transfers, not routine monthly municipal billing enquiries.
What if my transfer must register urgently?
Explain the exact deadline and why it matters: for example, a clearance document nearing expiry, simultaneous transfers, a bond guarantee or a contractual registration condition. Provide the current clearance figures and the transferring attorney’s details.
MDS prioritises urgent enquiries where practical, but neither a fixed turnaround nor an outcome can be promised. Contacting specialists only after a certificate expires or a payment is made can limit the available options.
What is the difference between clearance figures and a clearance certificate?
Clearance figures are the municipality’s statement of amounts it requires or claims for the property-transfer process. A clearance certificate is the official document issued once the applicable statutory requirements have been met.
The figures must be reviewed and settled as appropriate before the conveyancer can obtain the certificate. The certificate is then used during Deeds Office registration. See examples of the documents if the terminology is unfamiliar.
Can clearance figures delay my sale even after the buyer has paid a deposit?
Yes. Payment of a deposit under a sale agreement does not remove statutory transfer requirements. If the municipality’s clearance position cannot be resolved in time, the conveyancer may be unable to lodge or register the property.
Notify the conveyancer of the potential problem as soon as it emerges. Where the amount is high, an early specialist assessment may help establish a sound and commercially workable way forward.
What is bridging finance for municipal clearance figures?
Bridging finance is a short-term funding arrangement that may help cover a municipal payment needed to progress a property transfer while funds are tied up in the transaction. The advance is typically linked to an anticipated repayment source such as transfer proceeds.
MDS can introduce suitable cases to independent bridging finance providers; it is not a promise of finance or a substitute for reading the lender’s terms. Explore bridging finance.
Can conveyancing secretaries refer high clearance matters to MDS?
Yes. Conveyancing secretaries often see clearance applications, approaching expiry dates and large demands early in the transaction. They are therefore well placed to flag a potential problem to the supervising attorney.
Share the current figures, matter reference and attorney contact details through the appropriate authorised channel. MDS should coordinate with the transferring practice rather than create a competing administrative process.
Why does MDS refer to its Constitutional Court litigation history?
MDS’s history includes the work of New Ventures Consulting & Services, the Livanos-related litigation and the Jordaan matter culminating in a judgment on 29 August 2017. The consolidated Constitutional Court proceedings involved New Ventures and associated litigants, not an unrelated case that MDS merely cites.
The judgment clarified the limits of the section 118(3) municipal charge after transfer. It is evidence of involvement in an important legal dispute, not an automatic court endorsement of commercial services. Explore the firm’s account of the litigation.
What information should I send to MDS for a free assessment?
The most useful starting document is the current, legible municipal clearance-figures notice. Also provide the property’s suburb and municipality, the approximate amount demanded, the nature of the transfer and the details of the transferring attorney. Mention any deadline or payment already made.
Do not send banking passwords or unnecessary sensitive personal records through public channels. After the initial review, MDS will explain whether further documents are required and whether it can accept the matter.
Can a seller, buyer, estate agent or conveyancing secretary contact MDS?
Yes. These are all common participants in a property transaction, and identifying a potential clearance problem early is useful regardless of who raises it. The selling or transferring attorney remains central to the formal registration process.
MDS may need the property owner’s authority and cooperation from the appointed conveyancer before taking action. When you make an enquiry, say what your role is so that the correct people can be involved from the start.
Can I contact MDS before the municipality issues its figures?
Yes, particularly if you already know the property has complicated municipal arrears or if the sale is approaching an important deadline. Early contact can help you understand what information will be needed.
A meaningful review of the amount demanded usually requires the actual current figures. You can contact MDS while your conveyancer obtains them, but do not assume a potential reduction before the municipal demand has been examined.
Can MDS help if my lawyer is already handling the transfer?
Yes. MDS works alongside the transferring conveyancer rather than replacing that attorney. The attorney remains responsible for conveyancing, lodgement and registration; MDS concentrates on suitable municipal clearance issues.
Early cooperation avoids contradictory instructions or incomplete documentation. Where a specialist review is accepted, the parties should agree on the communication and settlement process.
Does a free assessment guarantee that my rates will be reduced?
No. Some municipal demands are legally and factually correct, and some cases do not justify specialist intervention. An initial assessment identifies whether there is a sound reason to investigate further.
If MDS accepts a matter, any resolution depends on the documents, applicable law, municipal engagement and the agreed scope of work. Request an assessment rather than relying on advertised percentage savings.
Is the MDS assessment really free and without obligation?
The initial expert assessment offered by MDS is free and does not require you to appoint the firm. It is intended to establish whether your property-transfer clearance matter may qualify for specialist assistance.
If MDS accepts a matter, it will explain the proposed engagement terms and any agreed success-based fee before you proceed. Municipal payments, conveyancing costs and independent third-party charges remain separate unless expressly agreed.
My property transfer is stuck because of municipal debt. Where do I start?
Start by asking the transferring attorney for the latest municipal clearance figures, the municipality concerned and the reason registration cannot proceed. A transfer can be held up by incorrect amounts, an unpaid legitimate debt, an expired document or an entirely different registration requirement.
If the figures relate to a property being transferred in Ekurhuleni, send them for a free preliminary assessment before agreeing to a payment or settlement. MDS will first establish whether the matter falls within its specialised service.
Can a property be registered without municipal clearance?
Ordinarily, section 118(1) requires an appropriate municipal clearance certificate before the Deeds Office registers transfer. Special rules can apply to certain transactions, including insolvency-related circumstances.
A conveyancer must determine the exact statutory requirements for the transaction. MDS assists with suitable clearance-figure disputes and negotiations; it does not promote bypassing lawful registration requirements.
Can I obtain the clearance certificate myself instead of using a conveyancer?
The clearance process is connected to formal property registration, and the transferring conveyancer normally handles the application and submission requirements. Different municipalities may offer portals or administrative access for applications.
Even where a portal can be used, issuing a certificate does not replace the attorney’s role in preparing and registering the deed. MDS does not replace the transferring attorney.
Can MDS assist with auctions, deceased estates or distressed transfers?
Matters may include ordinary sales, sheriff’s auctions and sales in execution, deceased estates, liquidations, sequestrations, and certain repossessions. Different legal and practical considerations can arise in each situation.
We assess the type of transfer and the municipal figures before accepting a matter. Some cases may require close coordination with the conveyancer, executor, trustee or other appointed professional.
Can rates clearance figures change after I receive them?
They can. Adjustments to readings, billing records, tariffs, arrears, interest or processing dates may affect the position. A figure issued earlier may no longer reflect the municipal balance by the time transfer is ready.
Ask your conveyancer to establish which figures are current and what period they cover. If a later demand differs sharply from an earlier one, keep both copies for a specialist review.
Can the municipality demand amounts beyond the previous two years?
The amount required for the section 118(1) certificate is a specific statutory issue; older debts and a municipality’s rights against the current owner are separate questions. Section 118(3) and other debt-recovery mechanisms may be relevant to older recoverable amounts.
A request to pay historical amounts cannot safely be evaluated by quoting the two-year period alone. The account’s history, ownership, limitation periods and any enforcement steps need context. Read why Section 118 is not a discount.
Does paying the rates clearance figures mean all municipal debt is settled?
Not necessarily. A clearance certificate has a specific statutory function. Older municipal debt that is lawfully owed by the seller may remain relevant, even where the certificate requirement has been met.
A written full-and-final settlement is different from simply paying an amount needed for a certificate. MDS places particular emphasis on clarifying that distinction, because misunderstandings can cause later disputes.
Does the municipality calculate rates and water charges in the same way?
No. Property rates are normally based on municipal valuation and applicable tariffs, while water and electricity charges depend on the service arrangement, meter readings, tariff structure and relevant account records. Other services may have separate charging rules.
When a property is transferred, the overall municipal account can involve several charge types. A specialised review considers the nature and period of each charge before reaching a conclusion.
How can I tell whether a clearance statement contains mistakes?
Warning signs can include a sharp unexplained increase, a balance inconsistent with the known account history, unusual meter adjustments or charges linked to the wrong property. These signs justify asking for an explanation, but they do not by themselves establish an error.
Where the amount is substantial and the property is transferring, provide the actual figures to MDS for a qualified assessment. Detailed audit and settlement methods are part of the firm’s specialist work.
How long is a municipal rates clearance certificate valid?
Section 118(1A) of the Municipal Systems Act states that a prescribed municipal clearance certificate is valid for 60 days from the date of issue. This statutory certificate period should not be confused with an expiry date on a municipality’s demand or quotation.
If registration is delayed, your transferring attorney should check whether a new application or certificate will be needed. Send approaching deadlines to MDS early if your clearance amount is under specialist review.
Is a municipal clearance certificate the same as a levy clearance certificate?
No. A municipal rates clearance certificate concerns municipal charges and the requirements for property transfer. Sectional-title properties may also require a body corporate levy clearance or other scheme-related confirmation.
The two documents come from different authorities and address different obligations. A problem with body corporate levies cannot be solved merely by obtaining municipal clearance, and MDS’s principal service relates to municipal property-transfer figures.
What happens if the clearance figures expire before payment?
The municipality may require updated figures or a fresh application, depending on its procedures and the document’s stated validity. Changes in account balances or dates may mean the amount to be addressed is no longer the same.
Your conveyancer should confirm the specific expiry conditions. If MDS is assessing the matter, notify it immediately so the review is based on current documents rather than an expired demand.
What is an advance municipal rates payment, and is it refundable?
Some municipal processes include amounts intended to cover anticipated charges until transfer or the end of a relevant billing period. The legal basis and treatment of advance amounts depend on the municipality’s policy and applicable law.
A refund or credit is not automatic in every circumstance. The conveyancer should obtain the municipality’s current procedure and advise how any post-registration credit will be handled. Avoid assuming the entire advance amount is a permanent charge.
What is the difference between municipal rates and transfer duty?
Municipal rates and service charges are billed by a municipality. Transfer duty is a separate national tax dealt with through SARS where applicable to the acquisition. They are different obligations and are administered through different processes.
SARS rates and exemptions can change, so your conveyancer should calculate current transfer duty using official guidance. See the SARS transfer-duty information. MDS focuses on suitable municipal clearance-figure matters, not the calculation of transfer duty.
What should buyers and sellers do after registration?
After transfer is registered, the seller should confirm closure or finalisation of the relevant municipal account and arrange final meter readings where required. The buyer should follow the municipality’s process to open or update the correct consumer-services account.
Your transferring attorney can advise on the documents required. Keeping a record of registration, meter readings and account correspondence can help avoid later confusion. This general guidance does not replace advice for a specific property.
Who is responsible for paying municipal clearance amounts when a property is sold?
Responsibility usually depends on the law, the nature of the charge and the signed sale agreement. The seller generally must ensure the required municipal clearance position is resolved so that transfer can be registered, while the conveyancer administers the transaction.
Some agreements allocate certain charges or advances differently. Do not assume that all amounts in a municipal demand automatically become the buyer’s liability. Ask the conveyancer to interpret your actual contract.
Why are my clearance figures much higher than my monthly rates account?
The clearance demand may cover more than a single monthly property-rates instalment. Depending on the account, it can contain municipal services, arrears, adjustments and amounts associated with the transfer process.
A large difference is a reason to ask questions, not proof that the municipality is wrong. MDS examines suitable property-transfer matters in context, rather than assuming that a monthly statement and a clearance quotation should match.
Can a municipality obtain an interdict that delays transfer?
In appropriate circumstances, a municipality may pursue legal remedies against the existing owner and seek to protect its rights before transfer. The availability and effect of an interdict are matters for proper legal advice.
This is one reason why a clearance certificate and a complete assessment of recoverable municipal exposure are not interchangeable. If you know of a threatened application or court order, notify the transferring attorney and specialist immediately.
Can a municipality recover tenant-incurred service debt through clearance?
Charges arising in connection with the property can present complicated questions where a tenant, occupier or another party consumed services. The section 118(1) clearance framework has been considered by the courts in such circumstances.
A seller should not assume that a tenant’s non-payment never affects the property-transfer process. The contract, ownership period, nature of the service and municipal account structure may all require consideration.
Can a property be sold while municipal debt is disputed?
A signed sale agreement and registration of ownership are different stages. A property may be sold while financial or municipal issues remain unresolved, but unresolved clearance requirements can obstruct eventual registration.
The conveyancer should identify the relevant contractual deadlines, municipal requirements and options. Where high Ekurhuleni clearance figures are preventing progress, specialist input is most useful early rather than after the sale is already in jeopardy.
Can I inherit unpaid municipal debt when I buy a property?
The 2017 Constitutional Court decision established that a new owner should not be burdened through section 118(3) with municipal debt incurred before transfer by a previous owner. This does not mean every account dispute after transfer resolves itself automatically.
You must distinguish a previous owner’s debt from your own charges arising after you take ownership, and from obligations created by the sale agreement. If the municipality is linking old debt to your account, ask the conveyancer for advice and preserve the records.
Can the municipality still pursue the seller for older unpaid charges?
Yes, if the debt remains legally recoverable. The Constitutional Court’s protection of new owners did not declare that sellers’ lawful debts are extinguished when ownership transfers.
The municipality may have available debt-recovery remedies against the person who actually owes the amounts, subject to applicable law, prescription and procedure. The existence and amount of a valid claim need to be established on the facts.
Does a debt judgment change the position on historical municipal charges?
A judgment, acknowledgement, payment arrangement or other procedural event can affect the status and enforceability of an alleged debt. It may also have consequences for prescription.
This is not an area where a general website answer can substitute for document review. Provide any summons, court order or signed settlement to the transferring attorney before taking a position on the amount demanded.
Does Section 118 write off debt older than 24 months?
No. The two-year period in section 118(1) is not a municipal debt amnesty. It concerns a specific clearance requirement and does not itself extinguish an otherwise recoverable older claim.
The legal consequences of historical debt depend on the person who owes it, the relevant provisions and the transaction. MDS warns against confusing the certificate amount with a full-and-final settlement. See the detailed explanation.
Is municipal historical debt automatically prescribed after three years?
No automatic blanket rule can safely be applied to every municipal account. Prescription depends on the type of debt, when it became due, interruptions or acknowledgements, litigation and other legal factors. Some debts and judgments can have different treatment.
A useful initial distinction is between the age of an invoice and whether the legal claim is actually prescribed. Do not accept or deny liability on that assumption alone; an attorney should consider the specific history.
Is Section 118 a property-transfer discount scheme?
No. Section 118 deals with municipal claims and clearance requirements, not a universal discount available to sellers. A reduced amount may arise from a lawful correction, negotiated settlement or other case-specific basis, but not simply from invoking the section number.
Any professional promising an automatic percentage reduction purely because of section 118 should be questioned. MDS explains the misconception in detail.
What did the Constitutional Court decide in the Jordaan matter?
On 29 August 2017, the Constitutional Court clarified that the charge under section 118(3) does not survive transfer so as to make a new owner liable for municipal debts incurred before transfer by a previous owner.
The consolidated proceedings included Ekurhuleni Metropolitan Municipality v Livanos and City of Tshwane v New Ventures Consulting and Services, alongside the Jordaan matter. MDS’s history is connected to those proceedings. You can read our account of the case and the Constitutional Court judgment . This judgment is a legal precedent, not an endorsement of every commercial service or a promise of reductions in every case.
The Jordaan matter formed part of the litigation pursued by New Ventures Consulting & Services and associated Livanos litigants, including MDS’s client Chantelle Jordaan. It is the firm’s own documented litigation heritage, not a matter merely observed from the sidelines. The published judgment should be read for the precise legal findings.
What does a municipality’s preferential claim mean for a property sale?
Section 118(3) describes a municipal charge and preference in relation to certain amounts due in connection with a property. Its practical effect is not identical to the separate two-year certificate requirement.
The priority of municipal claims may matter before transfer, particularly where a bondholder or distressed transaction is involved. Whether and how rights can be enforced depends on the law and the facts; this is precisely the kind of distinction that should not be handled with a one-line shortcut.
What does Section 118 of the Municipal Systems Act actually mean?
Section 118(1) deals with the clearance certificate needed before transfer. Section 118(2) contains a special qualification for transfers by trustees of insolvent estates. Section 118(3) deals with the municipality’s statutory charge and preference in respect of recoverable debt.
These provisions serve different purposes. Applying them properly can require more than reading a balance on a municipal statement. For a fuller public explanation, see our Section 118 guide .
What is a municipal by-law?
A municipal by-law is a local rule adopted by a municipality within its lawful powers. Municipal by-laws can regulate services, customer accounts and administrative requirements, but they must operate consistently with national law and the Constitution.
The relevance of any specific by-law depends on its current wording and how it applies to the municipality and property involved. We do not recommend attempting to resolve a complex transfer by relying on a single by-law in isolation.
What is the difference between section 118(1) and section 118(3)?
Section 118(1) establishes the requirement for municipal clearance before registering a transfer and refers to specified amounts becoming due during the two years before the application. Section 118(3) concerns a statutory charge on the property and a preference for certain recoverable municipal claims.
They operate differently. In the 2017 Constitutional Court judgment, the Court held that the section 118(3) charge does not survive transfer to burden a new owner for debt incurred by a previous owner. Read the judgment or MDS’s practical explanation.
What is the significance of Section 118(2) for insolvent estates?
Section 118(2) makes the property-transfer clearance provisions subject to section 89 of the Insolvency Act where property is transferred by a trustee of an insolvent estate. Those cases therefore require a different statutory analysis from an ordinary voluntary sale.
In insolvency matters, the identity of the transferor, the legal procedure, the creditors’ interests and the source of funds all matter. MDS considers qualifying matters individually alongside the appointed conveyancer and insolvency practitioner.
What should I do if old debt appears on a new owner’s account?
Keep the purchase and registration documents, any final seller statements, the new account and the municipality’s explanation of the charges. Identify which amounts arose before transfer and which arose afterwards.
The 2017 Constitutional Court judgment is an important authority in assessing liability for a previous owner’s debt, but it does not mean that every post-transfer billing problem is an MDS property-transfer clearance matter. Your conveyancer or an appropriate adviser can help determine the right route.
Can incorrect meter readings stop a property transfer?
Meter readings or estimated consumption can contribute to an unexpected municipal balance. Not every unusual reading is wrong, and not every meter dispute is relevant to transfer.
Where the issue materially affects a substantial clearance demand, provide the billing evidence and current figures for assessment. Routine monthly electricity or water account complaints fall outside MDS’s main property-transfer clearance service.
Can MDS speed up a municipal clearance dispute?
MDS aims to deal with accepted enquiries promptly and places particular emphasis on early intervention. It can assess figures and, where appropriate, engage through structured and lawful processes.
The time required for a final outcome depends on the nature of the dispute, documentation, the municipality’s responses and agreement between the parties. MDS cannot control registration dates or guarantee that an urgent matter will conclude within a particular number of days.
Can one delayed sale affect another linked property transfer?
Yes. Buyers and sellers often rely on proceeds or registrations from another property transaction. A clearance problem in one transaction can create practical pressure on guarantees, cash flow, possession dates and other related transfers.
Tell the conveyancer which transactions depend on one another. If the first obstacle is a high municipal clearance demand, MDS can assess whether its involvement is appropriate, but the overall chain still requires conveyancing coordination.
Can unpaid building compliance documents delay transfer too?
Depending on the property and transaction, electrical, gas, electric-fence or other compliance documents may be required under applicable regulations or contractual terms. These are separate from municipal rates clearance.
Ask the conveyancer which document is missing before instructing a specialist. MDS focuses on eligible municipal clearance matters, not on issuing electrical or building compliance certificates.
Do high municipal figures affect estate agents’ commission?
Commission and its timing depend on the estate agency mandate, the sale agreement and applicable law. When registration is delayed, commission that would otherwise be paid on transfer may also be delayed.
This is why estate agents should flag a potential municipal-clearance obstacle early. Refer the seller and transferring attorney together so that everyone can work from the same current figures without promising a particular registration date.
Does a conveyancer need new figures when a transaction is postponed?
Potentially. Whether new clearance figures are needed depends on the relevant document, its expiry conditions, changes to the municipal balance and the stage reached in the transfer process.
The conveyancer should check the municipality’s requirements rather than rely on an old statement. Keep the previous and updated versions if the amount changes materially; they can be useful for identifying the source of a difference.
What does it mean when the property is lodged at the Deeds Office?
Lodgement means the conveyancer has submitted the relevant deeds and documents for examination and registration. It is not the same as ownership having already transferred.
If a rates clearance certificate expires or another problem arises during the process, the conveyancer must address it according to applicable rules. MDS cannot alter Deeds Office examination or registration procedures.
What happens if the sale agreement has a registration deadline?
Some agreements contain target dates, linked transactions or conditions that become important if transfer is delayed. The legal consequences depend on the actual wording and the parties’ conduct.
Ask the conveyancer to review the agreement before assuming the sale will automatically fall away. MDS can concentrate on an accepted municipal-clearance issue, but contractual consequences must be addressed by the appropriate legal practitioner.
What should I do when a clearance certificate is about to expire?
Notify the transferring attorney immediately. Under section 118(1A), a certificate is valid for 60 days from issue, so timing can become critical where lodgement or registration is delayed.
Do not assume an extension will be granted. Ask whether a new certificate or updated documentation is necessary. If MDS is already working on the figures, provide the actual expiry date rather than describing the matter merely as urgent.
Why is my property registration taking so long?
Registration delays can arise from many different steps: municipal rates clearance, sectional title levies, bond cancellation, SARS documentation, guarantees, supporting deeds or office processing. It is worth identifying the exact bottleneck rather than assuming the municipality is responsible.
If the transferring attorney confirms that substantial municipal clearance figures are the obstacle, MDS can assess an eligible Ekurhuleni case. The firm does not administer the whole conveyancing process or guarantee the Deeds Office registration date.
Are municipal clearance rules different at a sheriff’s auction?
The municipal statutory framework still matters, but sheriff’s sales in execution involve auction conditions and procedural responsibilities that may differ from an ordinary private sale. Costs assumed by the purchaser must be checked against the conditions of sale and applicable law.
Buyers should not rely on the advertised auction price alone when evaluating exposure. MDS may assess eligible substantial clearance matters; the conveyancer must advise on the legal allocation of liability.
Can a sheriff’s auction buyer inherit the previous owner’s municipal debt?
The Constitutional Court’s 2017 interpretation of section 118(3) is relevant to debt incurred by previous owners, including the principle that the statutory charge does not survive transfer to burden a new owner.
However, the conditions of sale, who actually owes the charges, other obligations and the stage of transfer must be examined separately. An auction purchaser should obtain advice before bidding or signing based on a broad promise that there is no municipal exposure.
Can an inherited property be transferred if the municipal account is in arrears?
A property passing through an estate or later being sold can have unpaid municipal charges, and the correct route depends on the nature of the transfer and the estate’s administration.
The executor or transferring attorney should obtain the required figures and determine who is liable for what. If the demand is substantial and the property is in Ekurhuleni, MDS can consider whether specialist involvement is appropriate.
Can MDS assist in a liquidation or sequestration?
Potentially. Section 118(2) interacts with section 89 of the Insolvency Act when property is transferred by a trustee in an insolvent estate, and the legal position differs from an ordinary sale.
The liquidator or trustee, relevant creditors and appointed conveyancer must be considered. MDS may accept suitable clearance matters after examining the figures and the specific insolvency circumstances; no outcome is automatic.
Do sectional title units need municipal clearance and body corporate clearance?
A sectional title transfer can involve municipal clearance and separate levy-clearance requirements associated with the body corporate. The two are not interchangeable.
If the municipality’s demand is unexpectedly high, a specialist clearance assessment may be relevant, but body corporate levy disputes require separate consideration. Ask the conveyancer to identify which certificate or amount is causing the delay.
What about a property in possession of a bank?
A bank-owned or repossessed property can carry complicated histories of ownership, enforcement and municipal balances. The purchaser should understand the sale conditions and who is responsible for which amounts.
MDS can assess suitable Ekurhuleni property-transfer clearance cases, but it does not give a blanket guarantee about repossession purchases or replace the bank’s and conveyancer’s legal advisers.
What happens to municipal debts in a deceased estate property sale?
A deceased estate is managed through an executor, and the estate’s liabilities and available assets must be considered as part of administration. Obtaining municipal clearance for the property remains a relevant conveyancing issue.
MDS may assess a substantial Ekurhuleni clearance matter in a deceased estate where the documents and circumstances justify it. The executor and conveyancer should be involved; heirs should not assume they personally owe all estate debts.
What happens when a property is sold by a company or trust?
The registered owner may be a company, close corporation or trust. The conveyancer will need to confirm signing authority and the transaction’s legal and administrative requirements.
Municipal clearance obligations continue to require attention. A company-owned or trust-owned property with high figures can be assessed by MDS where it falls within current intake criteria; professional advisers should determine any tax and entity-specific consequences.
What if there is not enough money in an insolvent estate to cover clearance?
An insolvent estate raises legal questions about the use and distribution of proceeds, preferences and statutory requirements. The answer cannot safely be reduced to “the municipality must accept whatever money is available”.
The trustee, liquidator and conveyancer should obtain transaction-specific legal advice. MDS can consider qualifying municipal-clearance problems but cannot promise that an insufficient estate will automatically receive a certificate.
Can an estate agent give a buyer an assurance that municipal debts are settled?
An estate agent should not provide an absolute legal assurance based only on a clearance certificate or a verbal municipal confirmation. The certificate addresses a defined statutory requirement; other contractual and debt issues can remain.
The conveyancer should explain the transaction’s legal position, while the relevant parties obtain written documents supporting any agreed settlement. A careful explanation is better than an unfounded guarantee.
Can MDS work with an estate agency on several transactions?
An estate agency can refer individual qualifying property-transfer matters for assessment, including cases where different sellers face high municipal clearance demands. Acceptance is considered separately for each property and account history.
MDS does not undertake routine municipal billing support for an entire rental or sales portfolio as part of this offering. The focus is commercially suitable clearance matters, primarily within Ekurhuleni.
Does MDS replace the conveyancer or provide ordinary conveyancing?
No. The transferring conveyancer handles the legal transfer process and Deeds Office registration. MDS is a specialist service concentrating on qualifying municipal clearance-figure problems connected to property transfers.
This complementary relationship is important: a lawful outcome usually requires both an accurate municipal position and correct conveyancing steps. MDS’s role and the professional responsibilities should be clear from the outset.
What can banks and bondholders do when a clearance issue threatens registration?
Financiers may need clarity about timing, security, outstanding municipal claims and release of guarantees. These matters depend on the bond documents, transaction stage and applicable legal rights.
The appointed conveyancers and bank advisers should coordinate information. MDS may assess the municipal clearance demand in an accepted matter, but it does not certify mortgage security or undertake bank legal compliance.
What documents are useful when an attorney refers a complex case?
The current municipal figures and account identifiers are essential starting points. It is also helpful to know the transfer type, registered owner, reason the amount is disputed, registration timetable and whether any payment or settlement has already occurred.
For a complex accepted matter, MDS may request supporting history or transaction documents. Send sensitive information only through an agreed secure process, and do not delay referral while assembling every conceivable record.
What should a conveyancer do when clearance figures seem unreasonable?
Establish that the figures are current, identify the municipal accounts and the apparent source of the unusual balance, and record any approaching deadlines. Do not assume an unusually high demand is automatically invalid.
Where specialist assistance is appropriate, forward the material to MDS with the owner’s authority and a clear instruction regarding the transaction. MDS’s proprietary examination and settlement work begins only after an engagement is accepted.
When should an estate agent flag municipal clearance risks to the seller?
Ideally, before the transaction becomes time-critical. A property with known arrears, past billing disputes or exceptionally high estimated municipal exposure may need attention as soon as an offer to purchase is accepted.
Agents should not give legal assurances about what the seller ultimately owes. They can instead encourage early communication between seller, transferring attorney and MDS where the actual Ekurhuleni clearance figures warrant specialist review.
Can MDS arrange finance if I cannot afford the clearance payment?
MDS works with external bridging finance providers and may be able to introduce an accepted case where the proposed arrangement is suitable. Finance approval, conditions, fees and repayment are decided by the provider.
Not every transfer qualifies, and an introduction does not mean that funding will be approved. Where the clearance claim is disputed, the underlying figure should first be understood so the parties know what amount may legitimately need to be financed.
How is a bridging advance normally repaid when the property registers?
Many property-transfer bridging arrangements contemplate repayment from proceeds when the transaction registers, subject to the finance agreement and arrangements with the conveyancer.
If registration is delayed or does not occur, the consequences depend on the contract and must be understood in advance. The lender and conveyancer should explain the mechanics rather than leaving the seller to assume that repayment can only happen on a successful transfer.
Is bridging finance free, or are there fees and interest?
The price of bridging finance depends on the provider, amount, term, security and contract. It may include fees or finance charges. Do not assume the facility is free or that any cost will automatically be recovered through a clearance reduction.
Request the written cost breakdown and repayment conditions from the finance provider before signing. Any MDS professional fee arrangement is a separate issue to discuss during engagement.
Should I pay the municipality before MDS examines the figures?
Where you are considering MDS specialist assistance, it is generally sensible to obtain an assessment before making an irreversible payment or signing a settlement relating to a disputed high demand. Payment can change the options available for a matter.
This does not mean that lawful debts should simply be ignored or that urgent conveyancing requirements can be suspended without agreement. Speak to the transferring attorney about deadlines, risks and any intended payments.
Can MDS review Kempton Park, Benoni or Boksburg clearance figures?
These areas are within Ekurhuleni, so qualifying property-transfer clearance enquiries can be considered. The amount demanded and the account’s legal and factual position determine whether specialist involvement is commercially appropriate.
MDS does not promise that every enquiry will be accepted or reduced. Send the actual municipal clearance figures, not just a monthly account balance.
Do you assist with property transfers in Bedfordview and Edenvale?
Bedfordview and Edenvale fall within the City of Ekurhuleni, which is MDS’s present priority for new municipal property-transfer clearance matters. A potential case is assessed on its figures, transfer circumstances and suitability, not merely its location.
If a seller or conveyancer has received a substantial demand, submit the current figures and relevant transaction details for an initial assessment.
Does MDS consider properties in Tembisa, Katlehong or Vosloorus?
MDS’s Ekurhuleni geographical focus includes areas such as Tembisa, Katlehong and Vosloorus. As with other localities, cases must involve an appropriate property-transfer clearance issue rather than an ordinary monthly consumer account complaint.
The free initial assessment helps determine whether the matter’s size, circumstances and available documents justify further specialist work.
What about Germiston, Alberton, Springs and Brakpan?
Germiston, Alberton, Springs and Brakpan are also part of the City of Ekurhuleni. MDS focuses on qualifying property-transfer clearance demands in that municipal jurisdiction.
Whether the property is residential, commercial or part of a special transfer, the starting point is the current clearance figures and the transferring attorney’s information. The same legal care applies across the municipality.
Where can an attorney access Ekurhuleni’s official rates clearance system?
The City of Ekurhuleni operates a published Rates Clearance System for property-transfer administration. Your conveyancer should use the municipality’s current authorised procedure for applying and obtaining official clearance documents.
For municipal technical or portal support, use the municipality’s own channels. MDS is an independent specialist consultancy, not the City’s portal operator. Ekurhuleni official Rates Clearance System.
Can you assist with clearance figures in my Ekurhuleni suburb?
Yes, we assess eligible property-transfer clearance matters throughout the City of Ekurhuleni. Examples of areas within the municipality include Bedfordview, Edenvale, Germiston, Alberton, Kempton Park, Boksburg, Benoni, Brakpan, Springs, Nigel, Tembisa, Katlehong and Vosloorus.
Whether your property is in Greenstone Hill, Glen Marais, Rynfield, Meyersdal or another Ekurhuleni neighbourhood, the first step is the same: provide the municipality’s current clearance figures and the details of the transfer. Request a free assessment .
References to suburbs help identify the municipal jurisdiction, but eligibility depends on the property-transfer circumstances and the figures rather than on the suburb name alone.
Do you only consider very large clearance amounts?
Many matters referred to MDS involve substantial municipal clearance figures, but there is no automatic fixed minimum published for every situation.
We consider the size of the claim, the nature of the alleged debt, the type of transfer and whether a specialist intervention is commercially worthwhile. The free assessment helps establish whether we can assist.
Does MDS take municipalities to court to obtain reductions?
Not as a routine first step. Although litigation forms part of MDS’s documented history, our day-to-day emphasis is on professional analysis, direct engagement and lawful settlement where the facts support it.
Court proceedings, if ever necessary, require separate consideration. We do not promise litigation or a court outcome as part of a standard free assessment.
How does MDS help reduce high clearance figures legally?
MDS examines the municipality’s demand in the context of the property transfer and relevant legal obligations. Where a matter has merit, we engage through appropriate, documented processes with the municipality and the transferring attorney.
Our objective is a lawful, defensible outcome with clear written terms where a settlement is reached. We do not depend on informal favours, undisclosed arrangements or shortcuts, and we do not publish our proprietary assessment and settlement methods. Every outcome is case-specific.
Is there a brochure explaining MDS’s services?
Yes. You can download our service brochure (PDF) for an introduction to our clearance-figure work. The page you are reading contains more up-to-date information about our current geographical intake and assessment terms.
For a matter already in progress, please send the latest figures to our assessment service instead of relying only on general brochure information.
Can I read genuine client reviews before appointing MDS?
Yes. The MDS website includes a testimonials page that distinguishes contemporary external-platform reviews from historical written testimonials. As with any review, an individual client’s experience cannot guarantee a new matter’s result.
You can read the client feedback and learn about the firm’s documented legal history before deciding whether to request a free assessment. No obligation arises from making that initial enquiry.
What is the Constitutional Court, and why is it important to MDS?
The Constitutional Court is South Africa’s highest court in constitutional matters. Its judgments establish important legal principles that must be respected by public bodies and lower courts.
MDS’s predecessor and associated Livanos matters were part of the consolidated litigation decided in 2017 concerning historical municipal debt. The decision is part of our documented legal record; it does not mean the Court regulates or accredits MDS. Explore the national reporting and case history .
What is the South African Constitution?
The Constitution is South Africa’s supreme law. It protects fundamental rights and defines the powers and responsibilities of public bodies, including municipalities.
Constitutional principles were central to the 2017 dispute about whether a municipality could burden a new owner with someone else’s historical debt. For the practical implication in a property transfer, start with our Jordaan case explanation .
Where can I watch MDS television interviews or find radio coverage?
MDS maintains a public media archive with coverage of the litigation and its wider impact, including historical television, radio, newspaper and online reporting. This is valuable background for conveyancers and property owners who want to understand the firm’s record.
Visit For the Record: MDS publications and the original media collection. Media reporting is a historical record; it should not be read as a guarantee about the outcome of a new client matter.
Try fewer words, a simpler phrase or a category above. This page cannot assess a property without its current figures.
General educational information about South African property transfers, not personal legal advice, a municipal service or a promise of financial outcomes. MDS prioritises qualifying City of Ekurhuleni property-transfer municipal clearance matters; other areas are considered individually. A free initial assessment does not mean acceptance of every case. Commercial terms, third-party fees and outcomes depend on agreed written arrangements and the circumstances of the matter. Content reviewed October 2026; statutory requirements and municipal procedures may change.