When selling property in South Africa, the transfer cannot proceed without a valid Rates Clearance Certificate (RCC).
Many sellers are unaware that this document is a legal requirement. Without it, the transfer of ownership cannot be registered in the Deeds Office.
What Is a Rates Clearance Certificate?
A Rates Clearance Certificate is issued by the local municipality and confirms the following:
- All municipal charges are paid up to date
- No outstanding amounts are owing at the time of transfer
- The property complies with municipal financial requirements
This requirement is set out in the Local Government: Municipal Systems Act.
The Registrar of Deeds will not register the transfer of a property unless a valid RCC is lodged together with the transfer documents.
Simply put: No clearance certificate, no registration.
What Are Rates Clearance Figures?
Before the certificate can be issued, the conveyancer must apply to the municipality for rates clearance figures.
These figures typically include:
- Outstanding rates and taxes
- Electricity charges
- Water charges
- Sewerage fees
- Refuse removal
- Any arrear amounts
In addition, the municipality requires an advance payment covering:
- A minimum of 60 days (validity period of the RCC)
- In some cases, up to 120 days
This advance ensures the municipality is financially covered during the transfer process.
Who Is Responsible for Paying for the Rates Clearance Certificate?
The responsibility lies with the seller.
Once the conveyancer receives the rates clearance figures, the seller must:
- Pay the required amount to the conveyancer — not directly to the municipality.
- The conveyancer then pays the municipality.
- The payment is linked to the transfer application number to avoid delays.
Paying through the conveyancer ensures:
- Correct allocation of funds
- Faster issuing of the certificate
- Avoidance of administrative complications
What Happens After Payment?
Once the conveyancer has paid the municipality and obtained the RCC:
- The seller’s municipal account will usually reflect a credit.
- The seller is no longer required to continue monthly payments before transfer.
- The property can proceed toward registration in the Deeds Office.
What About Refunds After Registration?
If the property registers before the 60-day (or extended) advance period expires, the seller may be entitled to a refund.
After registration:
- The conveyancer submits a refund request to the municipality.
- The municipality reconciles the seller’s and purchaser’s accounts.
- Refund processing can take approximately four to seven months.
While this process may take time, proper handling by an experienced conveyancing attorney helps ensure the refund is requested and tracked.
Professional Conveyancing Support in Bloemfontein
If you are preparing to sell your property, contact our conveyancing team for professional guidance and a smooth, compliant transfer process.