Uniqon Wonings (Pty) Limited v City of Tshwane Metropolitan Municipality (22726/2013) [2014] ZAGPPHC 1052 (13 March 2014)

Uniqon Wonings (Pty) Limited v City of Tshwane Metropolitan Municipality (22726/2013) [2014] ZAGPPHC 1052 (13 March 2014)

The court held that the respondent municipality is not entitled to withhold clearance certificates for individual stands on the basis that rates and taxes for the entire development are unpaid. Section 118(1) of the Municipal Systems Act refers specifically to the property to be transferred, not the remainder of the development. Only registered property is subject to rates and taxes, and the municipality may not levy such charges on unsold, unregistered stands. The municipality retains security for outstanding rates and taxes through section 118(3), which provides a charge upon the property. The applicant is only required to pay the application fee for the clearance certificate for each...

Citation
[2014] ZAGPPHC 1052
Parties
Applicant: Uniqon Wonings (Pty) Limited; Respondent: City of Tshwane Metropolitan Municipality
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
13 March 2014
Case Number
22726/2013
Procedural Posture
Urgent Application / Judgment After Urgent Application and Written Heads of Argument
Outcome
Application granted. Orders issued in favour of the applicant. Costs awarded against the respondent on an attorney and client scale, including costs of two counsel and heads of argument.
Judges
Ebersohn AJ
Legal Topics
Municipal Property Rates, Clearance Certificates, Statutory Interpretation, Section 118 Municipal Systems Act
Land and Property Administrative Law Municipal Property Rates Clearance Certificates Statutory Interpretation Section 118 Municipal Systems Act

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Parties

Uniqon Wonings (Pty) Limited

Applicant

City of Tshwane Metropolitan Municipality

Respondent

Procedural Posture

Urgent Application / Judgment After Urgent Application and Written Heads of Argument

Legal Issues

  1. 1 Whether the respondent municipality is entitled to withhold clearance certificates for individual stands until rates and taxes for the entire development are paid.
  2. 2 Whether the municipality may levy property rates and taxes on unsold, unregistered stands in a township development.
  3. 3 Proper interpretation of section 118(1) of the Local Government: Municipal Systems Act 32 of 2000 regarding clearance certificates.

Ratio Decidendi

The court held that the respondent municipality is not entitled to withhold clearance certificates for individual stands on the basis that rates and taxes for the entire development are unpaid. Section 118(1) of the Municipal Systems Act refers specifically to the property to be transferred, not the remainder of the development. Only registered property is subject to rates and taxes, and the municipality may not levy such charges on unsold, unregistered stands. The municipality retains security for outstanding rates and taxes through section 118(3), which provides a charge upon the property. The applicant is only required to pay the application fee for the clearance certificate for each...

Court Disposition

Application granted. Orders issued in favour of the applicant. Costs awarded against the respondent on an attorney and client scale, including costs of two counsel and heads of argument.

Orders

  • The matter is treated as urgent. Respondent ordered to issue clearance certificates within 7 days from judgment for Stands 163, 165, and 172 upon payment of R50.40 per stand.
  • Declaratory order: Respondent is not entitled to levy property rates and taxes on unsold, unregistered stands; only on all remaining stands registered under the main title deed as one property.