Rates Clearance Certificates: What You Need to Know

A Rates Clearance Certificate (RCC) is a crucial document required when transferring ownership of a property. Issued by the local municipality, it confirms that all outstanding rates, taxes, and service charges related to the property have been settled.  

Why is it Important?

• Legal Requirement: The Deeds Registry will not register the transfer of a property without a valid RCC.  
• Protection for Buyer: It ensures that the new owner won't inherit unpaid municipal bills.  

What Does it Cover?

Typically, an RCC covers:

• Property rates
• Water and sewerage charges
• Electricity consumption
• Refuse removal
• Other municipal taxes or levies

How Does it Work?

1. Application: Your conveyancer will apply for the RCC on your behalf.  
2. Calculation: The municipality calculates outstanding amounts and an advance payment to cover the period between issue of the certificate and transfer registration.  
3. Payment: You or your conveyancer will pay the calculated amount.
4. Issuance: Once payment is confirmed, the municipality issues the RCC.  

Important Considerations:

• Validity: RCCs are typically valid for 60 days. If the transfer process is delayed, a new certificate might be needed.  
• Timely Payment: Ensure all municipal accounts are up-to-date to avoid delays in the transfer process.  
• Conveyancer Involvement: Your conveyancer will handle the RCC process, but understanding the basics is helpful.

Remember: While this article provides a general overview, specific requirements may vary between municipalities. Always consult with your conveyancer for accurate and up-to-date information.

By understanding the importance of a Rates Clearance Certificate and working closely with your conveyancer, you can ensure a smooth property transfer process.