Before a property can be transferred from seller to buyer, the municipality must confirm that all rates and municipal charges are paid up. This confirmation is issued in the form of a Rates Clearance Certificate, and the Deeds Office will not register the transfer without it.

The requirement is set out in the Municipal Systems Act and applies to all freehold property sales in South Africa. The certificate reflects not only arrears but also a projection of future charges — often requiring several months’ advance payment. If this process is delayed or mishandled, the entire transfer can be stalled.

Rates clearance is a legal step in the transfer process, and the seller is responsible for initiating it.

What Is a Rates Clearance Certificate?

A Rates Clearance Certificate is an official document issued by the local municipality confirming that all municipal charges linked to a property have been settled. This includes rates, water, electricity, refuse removal, and sewerage services — along with an advance payment covering a few months beyond the application date.

Without this certificate, the Deeds Office will not register the transfer of ownership. It is a legal requirement designed to protect municipalities from unpaid debts being passed to new owners.
Each certificate is property-specific and time-sensitive. If the transfer does not go through within the validity period — usually 60 days from the date of issue — a new certificate must be obtained, often requiring a fresh payment.

Why Is It Required for Property Transfers in South Africa?

A Rates Clearance Certificate is required by law before a property can be transferred to a new owner. This obligation is set out in Section 118 of the Municipal Systems Act, which prohibits the Deeds Office from registering a transfer unless a valid certificate is lodged with the transfer documents.

The certificate ensures that municipalities are not left with unpaid bills after the property changes hands. It protects the buyer from inheriting municipal debt and guarantees that the municipality is paid not only for arrears, but also for charges projected over the next few months.

How Long Does It Take to Get a Rates Clearance Certificate?

The turnaround time for a Rates Clearance Certificate varies depending on the municipality, but on average, it takes between 7 and 21 working days from the date of application. In some cases — particularly in larger metros or during high-volume periods — it can take even longer.

Delays are common if:

• The seller’s municipal account is in arrears
• The advance payment is calculated incorrectly
• Required documents (such as the sale agreement or ID copies) are missing
• The property is held in a trust or legal entity, which adds administrative layers

To avoid unnecessary delays, it’s essential to start the rates clearance process early — ideally as soon as the offer to purchase is signed. This step is managed by the conveyancing attorney as part of the broader property transfer process, alongside other legal checks like ensuring valid compliance certificates have been issued.

Who Pays for the Rates Clearance Certificate?

The responsibility for obtaining and paying for the Rates Clearance Certificate lies with the seller. This includes not only settling any arrears but also making an advance payment — usually covering between two to six months of projected municipal charges.

The municipality will not issue the certificate until this payment is made in full. Once the property is transferred, any unused portion of the advance is refunded to the seller, but only after the municipality reconciles the account — a process that can take several months.

The rates clearance fee is one of the many costs sellers must prepare for in the lead-up to transfer.

Read: Who Pays for What During the Transfer of Property

What Does Rates Clearance Cover?

Rates clearance applies to more than just municipal rates. The amount payable includes all outstanding charges tied to the property, such as:

• Water and electricity usage
• Refuse removal
• Sewerage services
• Any other service fees billed by the municipality

In addition to settling arrears, the municipality will also require an advance payment to cover future charges — usually based on an estimate of two to six months' service usage. This is non-negotiable and must be paid in full before the certificate is issued.

Sellers often overlook this when budgeting for the sale, just as many are caught off guard by early termination fees when cancelling a bond without notice — another seller-side cost that can impact transfer timelines if not managed properly.

How Long Does It Take to Get a Rates Clearance Certificate?

The turnaround time for a Rates Clearance Certificate varies depending on the municipality, but on average, it takes between 7 and 21 working days from the date of application. In some cases — particularly in larger metros or during high-volume periods — it can take even longer.

Delays are common if:

• The seller’s municipal account is in arrears
• The advance payment is calculated incorrectly
• Required documents (such as the sale agreement or ID copies) are missing
• The property is held in a trust or legal entity, which adds administrative layers

To avoid unnecessary delays, it’s essential to start the rates clearance process early — ideally as soon as the offer to purchase is signed. This step is managed by the conveyancing attorney as part of the broader property transfer process, alongside other legal checks like ensuring valid compliance certificates have been issued.

What Can Go Wrong — and How to Avoid Delays

Rates clearance is a routine part of the transfer process, but it’s also a common source of delay when key details are missed. Some of the most frequent issues include:

•   Unpaid municipal accounts — even minor arrears can block the certificate.
•  I ncorrect advance estimates — underpayment means the municipality won’t issue the certificate.
• Missing or mismatched documentation — incorrect erf numbers, outdated contact details, or incomplete forms can halt the process entirely.
• Late application — leaving the application too close to lodgement puts pressure on the conveyancer and risks missing transfer deadlines.

These delays often compound with other issues that affect transfer readiness — such as disputes over estate agent commission or delayed bond cancellation. The result is a stalled transaction that could have been avoided with better preparation.

Working with an experienced conveyancing attorney can help prevent these kinds of setbacks. While the attorney doesn’t control municipal timelines, they do ensure that applications are submitted correctly and early, and that sellers meet their obligations in the correct order.

VDM Attorneys – Municipal Clearance Support in Property Sales

Rates clearance is a legal requirement — and one of the most time-sensitive parts of the transfer process. If it’s delayed, everything else stalls with it.

At VDM Attorneys, we oversee every legal step involved in the property transfer, including ensuring that rates clearance applications are properly submitted, supporting documents are accurate, and seller obligations are clearly understood. While the municipality issues the certificate, we coordinate the process and flag potential issues early — helping to prevent the kinds of delays that hold up registration.

We also advise on how rates clearance fits into the broader legal and financial obligations during transfer — from verifying who pays for what, to identifying risks that may impact finalisation.

Contact us if you’re selling a property and want to avoid unexpected delays.