The Local Authority may in terms of Section 118 of the Municipal Systems Act No. 32 of 2000 restrain the transfer of property by not issuing a rates clearance certificate due to outstanding amounts which are due in connection with that property for municipal service fees, surcharges on fees, property rates and other municipal taxes, levies and duties, whether for the account of the registered owner and/or his tenant at the time.
The Constitutional Court has ruled that the registered owner is liable for his tenant's obligations to the Local Authority. One should always request an entire breakdown of any amounts owing, in that the Local Authority may only collect such rates and taxes during the two year period preceding the date of application for the rates clearance certificate as stipulated in terms of Section 1128[1][b] of the aforementioned Act. Thus they may not withhold clearance should the outstanding amount relating to the 2 year period be paid, whilst disputing any other amount of any prior time period.