The rates clearance certificate, and why it holds up transfers
A property sale can be signed, bonded and ready, and still sit for weeks waiting for one municipal document. The rates clearance certificate proves the municipal account is settled, and without it the Deeds Office may not register the transfer. Sellers are usually shocked by two things: how much has to be paid up front, and how much of it is for months they will not own the property.
What the law actually says
Section 118(1) of the Local Government: Municipal Systems Act prohibits the Registrar of Deeds from registering a transfer of property unless the municipality has certified that all amounts due for municipal service fees, surcharges, rates, taxes, levies and duties during the two years preceding the date of application have been fully paid.
Two things follow. First, only the last two years have to be cleared for the certificate to be issued. Second, that limitation does not wipe out older debt: the municipality keeps a claim secured against the property itself, which is why a buyer should ask what remains outstanding beyond the two years rather than assume a clearance certificate means a clean slate.
How the process runs
- The conveyancer applies for figures. Sellers cannot generally do this themselves. The application goes through the municipality’s online clearance system, and in some metros the conveyancer must be registered on it first.
- The municipality issues a figures statement. It shows the arrears for the cleared period plus an advance amount so that the certificate stays valid until registration. Johannesburg says figures are issued within five working days if there are no queries.
- The seller pays the full amount. Not the buyer. This is a seller cost, and it is often the largest single item on the seller’s account.
- The certificate is issued. Johannesburg issues within 24 hours of payment reflecting, and describes the overall process as taking up to 30 days.
- The conveyancer lodges at the Deeds Office while the certificate is still valid.
- Any overpayment is refunded to the seller after registration, once the municipality reconciles the account. This can take months and often has to be chased.
What the figures cover
- Property rates for the cleared period plus the advance.
- Water and sanitation, including the fixed availability charges.
- Electricity, where the municipality is the supplier rather than Eskom.
- Refuse removal and any other municipal service charges on the account.
- Interest and penalties already raised on arrears.
The advance is the part that surprises people. The certificate has to remain valid until registration, so the municipality bills forward. Johannesburg projects 120 days of all the basic services. Cape Town works on a 60-day validity and may require up to 120 days of advance payment. eThekwini publishes a tariff for the certificate itself of R290.85 including value added tax for property valued up to R185 000, and R467.25 above that.
What actually goes wrong
- A meter that was never read. Estimated readings for years, then a corrected bill that lands on the seller at the worst moment. Get a special reading early.
- The account is in a previous owner’s name, or split across two account numbers for one erf. Both have to be traced and cleared.
- Sectional title levies confused with rates. The body corporate issues its own levy clearance certificate, and both are needed for a sectional title transfer.
- A tenant with an arrears account. Municipal debt attaches to the property, not the occupier, so the seller pays it and then argues with the tenant.
- The certificate expires before lodgement. New figures, new payment, more delay. This is why bond delays cost money.
- Nobody claims the refund. Overpaid advances sit at the municipality until someone follows up in writing.
Work out the full cost of the transfer, free
Our bond and transfer cost calculator gives the transfer duty, conveyancing fees, deeds office fees and bond registration costs on a purchase price, so a seller or buyer can see the whole picture before the clearance figures arrive.
Calculate transfer costsFrequently asked questions
What is a rates clearance certificate?
A certificate from the municipality confirming that everything owed on the property for the two years before the application has been paid. Section 118(1) of the Local Government: Municipal Systems Act says the Registrar of Deeds may not register a transfer without it, which makes it the single document that stops a sale going through.
Why must I pay months in advance?
Because the certificate has to stay valid until the transfer registers, and that takes time. Municipalities therefore quote arrears plus an advance period. Johannesburg projects 120 days forward for rates, refuse, sanitation, water and electricity. Whatever is not used up by the transfer date is refunded to the seller afterwards.
How long is a clearance certificate valid?
Sixty days from issue in Johannesburg and Cape Town. If the transfer does not register in that window, new figures must be requested and paid, which is why conveyancers push to lodge as soon as the certificate is out.
Who applies for it?
The conveyancer, on the seller’s behalf, through the municipality’s online clearance system. Sellers cannot generally apply themselves, and in eThekwini the conveyancer takes formal responsibility for the accuracy of what is submitted.
What if there are arrears older than two years?
Section 118(1) only requires the last two years to be paid for the certificate to be issued, so older debt does not block the certificate. It does not disappear either: the municipality retains a claim against the property under section 118(3), which is why buyers should ask what is outstanding beyond the cleared period.
Can I speed it up?
Partly. Get a meter reading and a full account statement before the property is even listed, resolve any billing query then, and make sure the account is in the current owner’s name. Most delays are queries that could have been raised months earlier.
Keep exploring
Sources: section 118 of the Local Government: Municipal Systems Act 32 of 2000; the City of Johannesburg e-Clearance pages; the City of Cape Town rates clearance process documents; the eThekwini 2026/27 tariff schedule for the revenue clearance certificate. Municipal fees, validity periods and advance projections differ by metro and change annually, and some figures could not be verified against a published tariff, so confirm with the municipality or your conveyancer. Information, not legal advice.