Property Management, Property Rentals and Property Financial Services in South Africa

0861 664 444   sales@trafalgar.co.za

Levy Clearance

In terms of the Sectional Titles Act the Registrar of Deeds are not allowed to register a unit in the name of a new owner until it has been proven to him that the seller has paid all contributions due to the Body Corporate. Transferring attorneys therefore contacts us to obtain a levy clearance certificate in this regard. They ask this up to a certain date – for example if they are forecasting that the transfer will be registered during March they will ask clearance until the end of March. We give them the levies that will be due at that date as well as (where applicable) an estimate of the water and electricity charges up to that date. They need to pay this in full before a levy clearance certificate will be issued. It sometimes happens that we overestimated the water and electricity charges or that a transfer is registered earlier than expected and the seller is only liable for all charges up to the date of registration (from that date the new owner (buyer) will take over the responsibility – in such cases there could be a refund due to the seller which we process and pay out as soon as possible after we have been notified that the transfer was registered.

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