ON TUESDAY, 29 AUGUST 2017, THE CONSTITUTIONAL COURT HELD THAT NEW HOME OWNERS ARE NOT LIABLE FOR HISTORICAL MUNICIPAL DEBT FROM PREVIOUS OWNERS.

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The Court held that, in terms of Section 118(3) of the Local Government: Municipal Systems Act 32 of 2000, historical debt does not outlive transfer into a new owner’s name.

 

The Court held that Municipalities must collect monies owed to them from property owners in good time, and if the Municipality wishes to use a property as security for municipal debts it must do so prior to the property being transferred into name of the new owner.

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It is important to note that previous owners will remain liable for municipal debts, even after the property has registered into a new owner’s name.