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 NEWSROOM AI

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
Sanef: Unsubstantiated claims against journos dangerous

Sanef: Unsubstantiated claims against journos dangerous

A video has emerged of Winnie Madikizela-Mandela, where she mentions journalists, saying they were doing the work of the apartheid security establishment.

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
Here's how to check your load shedding schedule in Cape Town

Here's how to check your load shedding schedule in Cape Town

Stage 1 load s​hedding has been declared nationally. The City of Cape Town has urged residents to take note of the schedules.

Man who dumped body of family dog in street demoted at top JHB law firm

Man who dumped body of family dog in street demoted at top JHB law firm

Media law guru Emma Sadleir warns employees online that there are many potential events that could bring a company into disrepute.

SPARK Schools provides Singapore-quality education for R19 400 per year

SPARK Schools provides Singapore-quality education for R19 400 per year

Our education system is poor, leading to a proliferation of private schools, most which are unaffordable even for the middleclass.

Get ready for another round of load shedding as Eskom workers shut down power

Get ready for another round of load shedding as Eskom workers shut down power

Eskom spokesperson Khulu Phasiwe says the power utility has instructed municipalities to implement stage one load shedding.

[WATCH] SPCA lays animal cruelty charges following violent attack on seal pup

[WATCH] SPCA lays animal cruelty charges following violent attack on seal pup

Video footage emerged on Facebook showing two fishermen brutally kicking and stabbing the animal.

[LISTEN] Wife of Siya Kolisi 'so proud' as husband Siya leads SA to victory

[LISTEN] Wife of Siya Kolisi 'so proud' as husband Siya leads SA to victory

The Springboks won a Test game against England on Saturday under the captaincy of Siya Kolisi.

UPDATE: Joburg man who dumped dead dog claims there were no vets nearby - SPCA

UPDATE: Joburg man who dumped dead dog claims there were no vets nearby - SPCA

The man has told the Sandton SPCA that he could not locate a nearby veterinary clinic in order to dispose of the dog's carcass.

Eusebius: 'Needing to know what happened before the Supersport video is BS'

Eusebius: 'Needing to know what happened before the Supersport video is BS'

Callers on The Eusebius McKaiser Show stand behind Ashwin Willemse who walked off the Supersport Rugby set on Saturday.