Municipal Debt Specialist · National Historical Media Archive

Years in the making. A judgment that made history.

Before the 2017 ruling, historical municipal debt posed a serious threat to the certainty of property ownership. Buyers and property professionals faced the possibility of old municipal debts being pursued against a property long after its transfer — a concern that reached national newspaper front pages.

After years of proceedings involving Chantelle Jordaan, New Ventures Consulting & Services, F M Kekana and Livanos, the Constitutional Court delivered a unanimous judgment by all 11 judges on 29 August 2017. It confirmed that the statutory charge under Section 118(3) does not make a new owner liable, after transfer, for a previous owner’s municipal debt.

The implications extended across South Africa’s property-transfer system — from buyers and sellers to conveyancers, estate agencies, banks and the nation’s 257 municipalities at the time. This archive preserves the original coverage of that far-reaching ruling, together with the story of the Livanos-led effort behind MDS’s heritage.

A LANDMARK CONSTITUTIONAL COURT RULING201711 judges · unanimous decision
29 August 2017
[2017] ZACC 31 ↗

HISTORICAL EXHIBIT 01FEBRUARY 2016

The Star front page of 16 February 2016, headed PROPERTY-DEBT SHOCK, with a warning that buyers might face up to 30 years of historical rates accounts

ORIGINAL SOUTH AFRICAN PRESS COVERAGE · THE STAR
A contemporaneous newspaper front page illustrating the uncertainty about historical municipal debt before the 2017 judgment.

THE PROBLEM BEFORE THE LANDMARK RULING

“Property-debt shock.” A headline that captured the national concern.

On 16 February 2016, The Star led with the stark warning that property buyers could face demands involving up to 30 years of historical rates accounts. The headline reflected an issue with consequences for confidence in property ownership and transfer.

2016The concern reached the front page

2017The Constitutional Court clarified the law

The stakes were not confined to one property owner. South Africa’s property market depended on legal certainty for buyers, sellers, estate agents, conveyancers, financial institutions and municipalities across the country.

The 257-municipality figure refers to South Africa’s nationwide municipal count following the 2016 redemarcation; it does not mean every municipality was a party to the proceedings.

Discover the story behind the ruling ↗

The story behind the historic proceedings

The people, persistence and leadership behind the litigation.

Historic photograph preserved in the MDS archives of people associated with the Constitutional Court proceedings
HISTORICAL PHOTOGRAPH · THE PEOPLE BEHIND THE PROCEEDINGSHistoric image from the MDS and Livanos archive. Select the photograph to read the story behind the 2017 judgment.

The 2017 decision was the culmination of years of preparation and sustained legal work.

The consolidated proceedings brought together Chantelle Jordaan, New Ventures Consulting & Services, F M Kekana and the Livanos matter, among others. Their cases were heard together by South Africa’s highest court.

As recorded in MDS’s own history, Livanos helped drive and sustain the strategy and funding behind the lengthy litigation, working through associated companies and in clients’ interests. Chantelle Jordaan was selected as a prominent named applicant and became a widely recognised public face of the proceedings.

The judgment’s significance went far beyond a single municipal account. It clarified a crucial protection for new owners within South Africa’s nationwide property-transfer system, drawing widespread attention from the conveyancing, banking, property and municipal sectors.

The named parties and judgment · [2017] ZACC 31 ↗

The Court’s unanimous decision · 29 August 2017

What the Court decided — in plain English.

THE PRINCIPLE PROPERTY BUYERS SHOULD KNOW

The previous owner’s municipal debt does not become yours simply because you bought the property.

When ownership transfers, the new owner is not liable under the charge in Section 118(3) for historical municipal debts incurred before that transfer.

The Constitutional Court considered the meaning of Section 118(3) of the Local Government: Municipal Systems Act 32 of 2000. All 11 members of the Court concurred in the judgment delivered by Justice Cameron.

The Court held that the statutory charge under Section 118(3) does not survive transfer so as to burden the new owner with the previous owner’s historical debts.

This does not mean that every underlying municipal debt is automatically cancelled, nor does it remove the separate requirements for obtaining municipal clearance before a transfer. These are distinct legal questions.

Read the history behind the ruling ↗

Historic 2017 Constitutional Court victory image preserved in the MDS archive

A historic moment · Preserved for future generations

Unanimous in the highest court.

The Court’s ruling clarified an important protection for purchasers across South Africa and attracted extensive television, radio, newspaper and online coverage.

Below is the archive of original broadcasts and contemporary reporting, retained as a record of that moment and of the Livanos heritage behind MDS.

National television coverage  ·  Six recordings

The story reached the nation.

Watch the featured SABC News report on YouTube, or open original archived television recordings individually. None of the videos load automatically.

SABC News 2017 report — national media coverage of the Constitutional Court judgment. Select to watch on YouTube.

SABC News — Constitutional Court coverageHistorical television report · 2017 · Opens on YouTube

Watch the report ↗

Prefer the historic website-hosted copy? Open the original SABC recording ↗

More television coverage

The eNCA broadcast collection

Archive recordings open separately; availability depends on the original media files retained on this website.

Original newspaper clippings

Headlines preserved in print.

Browse the original archived newspaper pages. Select an image to see the full-resolution clipping in a new tab.

In the national spotlight · Historic coverage

A moment reported across South Africa.

Television networks, radio stations and leading publishers reported on the 2017 judgment. The names below reflect outlets represented in the archived material.

SABC NewseNCABusiness DayNews24MoneywebThe CitizenTimesLIVEMail & GuardianIOLFin24BeeldProperty24Sowetan702Kaya FMSAfmClassic FMEWN

Publication and broadcaster names are displayed as text references, not as corporate endorsements or official partner logos.

The complete original press record · 2017

Every publication. Every headline. In plain view.

Explore 51 archived articles and reports documenting the nationwide response to the Constitutional Court judgment. Each card identifies the publication and preserves its original headline. Select any card to open the archived PDF in a new tab.

702ConCourt rules new homeowners not liable for historical debtPDFRead archived coverage ↗All for WomenNew homeowners not liable for previous ownersPDFRead archived coverage ↗BeeldMunisipaliteite het hul mag misbruikPDFRead archived coverage ↗BizCommunityConcourt judgment a big win for real estatePDFRead archived coverage ↗Business DayNew homeowners not liable for historical debtPDFRead archived coverage ↗Business DayNew homeowners not liable for historical debtPDFRead archived coverage ↗Business DayNew homeowners not liable for historical debtPDFRead archived coverage ↗Business Day ePaperNew Homeowners not liable for historical debtPDFRead archived coverage ↗BusinessTechNew property owners are not liable for historical debtPDFRead archived coverage ↗Cape TimesProperty owners set to recoup historic debtPDFRead archived coverage ↗Destiny ConnectNew property-owners not responsible for historical municipal debtPDFRead archived coverage ↗Destiny ManConCourt rules in favour of new home-owners saddled with municipal debtPDFRead archived coverage ↗East Coast RadioConCourt ruling positive for new homeownersPDFRead archived coverage ↗eNCAConCourt finds new homeowners not responsible for historical debtPDFRead archived coverage ↗Engineering NewsNew home owners not liable for historical debtPDFRead archived coverage ↗EWNCONCOURT RULES NEW HOMEOWNERS NOT LIABLE FOR HISTORICAL DEBTPDFRead archived coverage ↗EWNCONCOURT TO RULE ON HISTORICAL DEBT MATTERPDFRead archived coverage ↗EWNMUNICIPALITIES URGED TO FOLLOW RULES WHEN SETTLING DEBT WITH PROPERTY OWNERSPDFRead archived coverage ↗Fin24New home owners not liable for historical debtPDFRead archived coverage ↗Herald LiveProperty buyers off hook for old debtsPDFRead archived coverage ↗Herald LiveProperty buyers off hook for old debtsPDFRead archived coverage ↗Herald LiveHomeowner’s nightmare We paid previous owner’s R206‚000 municipal debtPDFRead archived coverage ↗Home TimesCon Court rules in favour of property ownersPDFRead archived coverage ↗htxt.africaNew property owners not liable for previous owner debts, ConCourt rulesPDFRead archived coverage ↗IOLProperty Court victory over historical municipal debtPDFRead archived coverage ↗IOLProperty owners not liable for INHERITED debt ConCourtPDFRead archived coverage ↗IOLInherited debt ruling a victory for property ownersPDFRead archived coverage ↗IOLProperty owners set to recoup historic debtPDFRead archived coverage ↗IOLCouncil targets property transfersPDFRead archived coverage ↗Jacaranda FMMsimanga says ConCourt ruling provides clarityPDFRead archived coverage ↗Jacaranda FMNew homeowners not responsible for historical municipal debtPDFRead archived coverage ↗Mail & GuardianConCourt rules on new ownersPDFRead archived coverage ↗Maroela MediaNuwe huiseienaars nie aanspreeklik vir vorige skuldPDFRead archived coverage ↗MoneywebNew property owners not liable for old debt, court rulesPDFRead archived coverage ↗MoneywebConCourt ruling on historical debt gives relief to new property ownersPDFRead archived coverage ↗News24ConCourt property debt judgment provides clarityPDFRead archived coverage ↗Property24New property owners no longer liable for historical municipal debtPDFRead archived coverage ↗R NewsCONCOURT JUDGMENT A BIG WIN FOR REAL ESTATEPDFRead archived coverage ↗SowetanJoburg and Tshwane mayors yet to calculate costs of historical debt rulingPDFRead archived coverage ↗Tame TimesBedfordview Local municipal debt specialist makes historyPDFRead archived coverage ↗Tame TimesBedfordview Editors NotePDFRead archived coverage ↗The CitizenConcourt rules new homeowners not liable for debts of previous ownersPDFRead archived coverage ↗The CitizenConCourt ruling a big boost for housing marketPDFRead archived coverage ↗The New AgeConCourt rules on property debtPDFRead archived coverage ↗The RepNew property owners not responsible for settling municipal debt of previous ownersPDFRead archived coverage ↗The South AfricanConCourt rules homeowners shouldn’t pay off debts of previous occupantsPDFRead archived coverage ↗TimesLIVEConCourt rules on property ownersPDFRead archived coverage ↗TimesLIVEHistorical municipal debt judgment good news for new ownersPDFRead archived coverage ↗TimesLIVETshwane welcomes judgment which stops it from collecting old debt from new ownersPDFRead archived coverage ↗TimesLIVENew homeowners not liable for old ownersPDFRead archived coverage ↗TimesLIVERuling on municipal debts is a slamPDFRead archived coverage ↗

THE COMPLETE HISTORICAL COLLECTION

Original 2017 media compilationAll contemporary articles compiled into one archival PDF.

Open compiled archive PDF ↗

Municipal Debt Specialist  ·  Established 2002

Historical experience. Practical help with today’s clearance figures.

Selling or transferring a property in Ekurhuleni? If the municipal clearance figures are unusually high, send them to our specialist team for a free, no-obligation assessment. Not every matter qualifies for a reduction.