07/09/2026
βΌοΈπ A MUNICIPAL CLEARANCE CERTIFICATE is
required in order to effect transfer of a property
It's 1 of the sellers expenses in a property sale.
Read below, Claudia explains it in full detail for You
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You've sold your home, the paperwork is underway... and then your conveyancer sends you the municipal rates clearance figures.
For many sellers, the amount comes as a surprise because it can be considerably more than their normal monthly municipal account.
So, why are you being asked to pay in advance?
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Before transfer can be registered, the conveyancer must obtain a Rates Clearance Certificate (RCC) from the relevant municipality.
The municipality calculates the amount required to issue that certificate and these figures can include:
βοΈ Outstanding rates and taxes
βοΈ Water and electricity
βοΈ Sewerage and refuse charges
βοΈ An amount paid in advance, commonly covering 60 days, although a municipality may require up to 120 days.
This is why the amount requested can look much higher than your usual monthly municipal bill.
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A valid Rates Clearance Certificate is required for the property transfer to be registered at the Deeds Office.
In simple terms:
PROPERTY SOLD β‘οΈ RATES CLEARANCE β‘οΈ TRANSFER CAN PROCEED
The seller is responsible for settling the amount required for the clearance certificate. The article advises that, when requested, payment is made to the conveyancer, who then pays the municipality in connection with the transfer application.
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If the property transfers before all of the prepaid amount has been used, there may be a credit due back to the seller.
After registration, the municipal accounts need to be reconciled and any applicable refund processed. This can take time, so sellers shouldn't necessarily expect that money back immediately.
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Don't only budget for commission and compliance certificates when planning your sale.
Understanding the rates clearance process and the upfront cash flow that may be required can help you avoid an unexpected financial surprise once your property is under offer.
Selling a home involves much more than finding a buyer. Knowing what happens between SOLD and REGISTERED is just as important.
Thinking of selling in Farrarmere, Northmead or Rynfield? I can guide you through the selling process so you know what to expect from the beginning.
π² Let's talk property.
Claudia Soares | ZA Prop Benoni
π± 083 608 2834
π‘ The Better Choice
