Rates Clearance Certificates: What You Need to Know
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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?
- Application: Your conveyancer will apply for the RCC on your behalf.
- Calculation: The municipality calculates outstanding amounts and an advance payment to cover the period between issue of the certificate and transfer registration.
- Payment: You or your conveyancer will pay the calculated amount.
- 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.
Author: Capital
