ConCourt rules new homeowners not liable for historical debt

JOHANNESBURG - The Constitutional Court has ruled that new home owners are not liable for historical debt incurred by previous owners.

Several municipalities including Tshwane, eThekwini and Ekurhuleni had argued that it was lawful for a municipality to attach and sell a recently purchased property in order to pay debt owed to them.

The case was brought by several property owners who opposed this practice.

Historically a property was not allowed to be transferred to a new buyer until a municipal certificate was issued, clearing any debt spanning a two-year period.

However, debts that surpassed the cut off became the liability of the new owner.

At the heart of this appeal was the interpretation of the Municipal Systems Act, which municipalities used to refuse to issue clearance certificates until all debts had been paid.

Justice Edwin Cameron handed down Friday’s unanimous judgment.

Cameron says the provision is capable of being interpreted so that the charge does not survive transfer.

MUNICIPALITIES ORDERED TO PAY COSTS OF APPLICATION

The court has also ordered municipalities to pay the costs of the application brought by homeowners.

In a unanimous judgment, Justice Edwin Cameron says the Municipal Systems Act can be interpreted so that the charge does not survive the transfer.

“It is declared that upon transfer of a property, a new owner is not liable for debts arising before transfer from the charge upon the property under Section 113. The appellants and the appeals and the minister are to pay the applicant costs, including the costs of two counsel.”


This article first appeared on 702 : ConCourt rules new homeowners not liable for historical debt


Recommended

by THE NEWSROOM

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
MultiChoice: ANN7 to be taken off DStv

MultiChoice: ANN7 to be taken off DStv

During a briefing on Wednesday, CEO Calvo Mawela made the announcement.

SSA confirms case opened over Jacques Pauw book

SSA confirms case opened over Jacques Pauw book

Jacques Pauw's book contains allegations against President Jacob Zuma relating to corruption and irregularities with his tax affairs.

[ALERT] AG: Irregular municipal expenditure jumps by over 50%

[ALERT] AG: Irregular municipal expenditure jumps by over 50%

Auditor-General Kimi Makwetu reports limited improvements in audit results of SA's municipalities.

Gupta lieutenant Salim Essa's old associate was given Eskom top job

Gupta lieutenant Salim Essa's old associate was given Eskom top job

#GuptaLeaks show that the family received Collin Matjila’s CV shortly before he was appointed acting CEO at Eskom in 2014.

Bail applications for OR Tambo heist suspects postponed

Bail applications for OR Tambo heist suspects postponed

The six will appear on different dates over the next week.

Popular articles
‘Maimane, Malema will find Ramaphosa harder to deal with than easy-target Zuma’

‘Maimane, Malema will find Ramaphosa harder to deal with than easy-target Zuma’

Afternoon Drive’s Stephen Grootes interviews Senior Research Associate at the Institute for Security Studies Judith February.

Hawks video shows fugitive Ajay Gupta leaving SA

Hawks video shows fugitive Ajay Gupta leaving SA

The Hawks are in possession of video footage showing Gupta, wanted in connection with Vrede dairy farm scandal, leaving SA.

Eusebius says EFF misread the moment by walking out on President's election

Eusebius says EFF misread the moment by walking out on President's election

Eusebius Mckaiser asked callers what they thought of how opposition parties conducted themselves in yesterday's election.

LISTEN: Tannie Evita predicted Ramaphosa would be president in 1994

LISTEN: Tannie Evita predicted Ramaphosa would be president in 1994

Tannie Evita Bezuidenhout shares her thoughts on SA's new president.

Zwane, Dlamini, Muthambi and Gigaba may be axed in Ramaphosa reshuffle - journo

Zwane, Dlamini, Muthambi and Gigaba may be axed in Ramaphosa reshuffle - journo

Cyril Ramaphosa is expected to reshuffle the Cabinet as he takes over from Zuma and makes his mark the National Executive.

Hope Ramaphosa: Cyril never lifted a finger to me, he wouldn't beat a woman

Hope Ramaphosa: Cyril never lifted a finger to me, he wouldn't beat a woman

Cyril Ramaphosa's ex-wife says abuse allegations spread by EFF leader Julius Malema are an attempt to tarnish his reputation.