South Africa Case Law

23 Laurel Street Properties v Lethabo Village Body Corporate and Another (1568/2025)

23 Laurel Street Properties v Lethabo Village Body Corporate and Another (1568/2025) [2025] ZAFSHC 215 (14 July 2025)

Court

Free State High Court, Bloemfontein

Case number

1568/2025

Judge

Buys AJ

The court found that the impugned resolutions adopted by the first respondent exempting the applicant from levy contributions on unoccupied units were ultra vires and void ab initio, as they contravened the statutory obligations imposed by the Sectional Titles Schemes Management Act and its regulations. The body corporate is required by law to levy contributions on all owners, and no power exists to exempt any owner, including a developer, from this duty. The applicant's reliance on prior conduct and the issuance of R0-00 clearance certificates for other units does not override the statutory…

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• Sectional Titles Schemes Management Act
• Levy Collection
• Ultra Vires Resolutions
• Clearance Certificates

Agri Piet Retief v Mkhondo Local Municipality and Another (5219/2022)

Agri Piet Retief v Mkhondo Local Municipality and Another (5219/2022) [2024] ZAMPMBHC 10 (14 February 2024)

Court

Mbombela High Court, Mpumalanga

Case number

5219/2022

Judge

Greyling-Coetzer AJ

The court found that the applicant failed to establish a clear right or factual basis for the relief sought. The applicant did not provide evidence that the Municipality failed to promulgate rate resolutions in the Provincial Gazette, nor did it demonstrate that the clearance figures or the application of the statutory ratio were incorrect. The deponent lacked personal knowledge of the facts, and the founding affidavit did not disclose the applicant's constitution, membership, or ownership details. The relief sought was interdictory in nature, aimed at restraining the Municipality from exerci…

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• Municipal Property Rates Act
• Promulgation Of Rates
• Clearance Certificates
• Ratio Of Property Rates
• Judicial Review
• Standing

Sikunye Holdings (Pty) Ltd v Municipal Manager of Govan Mbeki Local Municipality and Another In re: Sikunye Holdings (Pty) Ltd v Govan Mbeki Local Municipality (959/2022; 3763/2018)

Sikunye Holdings (Pty) Ltd v Municipal Manager of Govan Mbeki Local Municipality and Another In re: Sikunye Holdings (Pty) Ltd v Govan Mbeki Local Municipality (959/2022; 3763/2018) [2022] ZAMPMHC 2 (22 March 2022)

Court

Middelburg High Court, Mpumalanga

Case number

959/2022; 3763/2018

Judge

Langa

The court found that the respondents were aware of the court order and failed to comply with its terms, specifically by calculating rates and charges on individual erven as separate properties rather than on a pro rata basis as required by the Municipal Property Rates Act and the principles set out in City of Tshwane v Uniqon Wonings. The respondents did not appeal the relevant orders and failed to discharge the onus to prove that any non-compliance was not wilful or mala fide. The evidence showed that clearance figures were calculated incorrectly, resulting in excessive charges to the applic…

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• Municipal Property Rates Act
• Contempt Of Court
• Clearance Certificates
• Valuation Of Erven
• Section 118 Municipal Systems Act

Damons NO and Others v Euphoria Home Owners Association NPC and Others (3972/2016)

Damons NO and Others v Euphoria Home Owners Association NPC and Others (3972/2016) [2016] ZALMPPHC 8 (22 September 2016)

Court

Limpopo High Court, Polokwane

Case number

3972/2016

Judge

E M Makgoba

The High Court ordered the HOA to issue clearance certificates for property transfers and dismissed its counter-application to force further restructuring negotiations.

• Clearance Certificates
• Liquidation Transfer
• Contractual Negotiation
• Ubuntu Principle
• Clearance-certificates
• Property-transfer

City of Tshwane v Uniqon Wonings (20771/2014)

City of Tshwane v Uniqon Wonings (20771/2014) [2015] ZASCA 162; 2016 (2) SA 247 (SCA) (20 November 2015)

Court

Supreme Court of Appeal

Case number

20771/2014

Judges

Lewis, Cachalia, Theron, Wallis, Saldulker

The Supreme Court of Appeal held that rates and taxes are payable by the township owner over the remaining extent of the township as a single entity, not over unsold erven separately. When a township owner sells an erf and applies for a clearance certificate, the municipality must determine the rates and charges payable over the preceding two years in connection with that erf and issue the certificate against payment of that amount. The phrase 'in connection with that property' in s 118(1) of the Systems Act refers to the property to be transferred, not the entire township. The court rejected…

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• Municipal Property Rates Act
• Clearance Certificates
• Interpretation Of Statutes
• Township Development
• Valuation Rolls
• Local Government Municipal Systems Act

Cowin N.O. and Others v Kyalami Estate Homeowners Association and Others (499/2013)

Cowin N.O. and Others v Kyalami Estate Homeowners Association and Others (499/2013) [2014] ZASCA 221 (12 December 2014)

Court

Supreme Court of Appeal

Case number

499/2013

Judges

Maya, Theron, Saldulker, Mocumie, Gorven

The Supreme Court of Appeal held that the restrictive title condition in the deed of transfer, which prohibits the transfer of immovable property without a clearance certificate from the homeowners association, constitutes a real right. This right is binding not only on the property owner but also on successors in title, including liquidators of an insolvent estate. The amounts owed to the association do not qualify as 'taxes' under section 89(5) of the Insolvency Act, as previously determined by the court in Barnard NO v Regspersoon van Aminie en ‘n ander. The liquidators are therefore requi…

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• Real Rights In Land
• Title Conditions
• Homeowners Association Liabilities
• Insolvency Priorities
• Clearance Certificates

Willow Waters Homeowners Association (Pty) Ltd v Koka N.O. and Others (768/2013)

Willow Waters Homeowners Association (Pty) Ltd v Koka N.O. and Others (768/2013) [2014] ZASCA 220; [2015] 1 All SA 562 (SCA); 2015 (5) SA 304 (SCA) (12 December 2014)

Court

Supreme Court of Appeal

Case number

768/2013

Judges

Maya, Theron, Saldulker, Mocumie, Gorven

The Supreme Court of Appeal held that the embargo provision in the title deed constitutes a real right, not a mere personal right. The court found that the intention behind the embargo was to bind all successive owners, including trustees in insolvency, and that the restriction subtracts from the dominium of the property by limiting the owner's right to transfer. The embargo thus remains binding on the trustees and the Master in sequestration. The association's right to withhold a clearance certificate until outstanding levies and penalties are paid is enforceable against the insolvent estate…

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• Title Conditions
• Real Vs Personal Rights
• Embargo On Transfer
• Insolvency
• Clearance Certificates

Uniqon Wonings (Pty) Limited v City of Tshwane Metropolitan Municipality (22726/2013)

Uniqon Wonings (Pty) Limited v City of Tshwane Metropolitan Municipality (22726/2013) [2014] ZAGPPHC 471 (10 July 2014)

Court

North Gauteng High Court, Pretoria

Case number

22726/2013

Judge

P.Z. Ebersohn

The High Court granted a Rule 49(11) application for immediate execution of its earlier order pending appeal, and awarded costs, including two counsel.

• Rule 49 11 Execution Pending Appeal
• Clearance Certificates
• Condonation Of Late Appeal
• Semi Urgent Application
• Rule-49-11
• Execution-pending-appeal

Uniqon Wonings (Pty) Limited v City of Tshwane Metropolitan Municipality (22726/2013)

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

Court

North Gauteng High Court, Pretoria

Case number

22726/2013

Judge

Ebersohn AJ

High Court held a municipality could not withhold clearance certificates for individual stands because rates on the whole development were unpaid.

• Municipal Property Rates
• Clearance Certificates
• Statutory Interpretation
• Section 118 Municipal Systems Act
• Municipal-property-rates
• Clearance-certificates

City of Cape Town v Real People Housing (Pty) Ltd (77/09)

City of Cape Town v Real People Housing (Pty) Ltd (77/09) [2009] ZASCA 159; [2010] 2 All SA 305 (SCA) ; 2010 (5) SA 196 (SCA) (30 November 2009)

Court

Supreme Court of Appeal

Case number

77/09

Judges

HARMS, NUGENT, MALAN, HURT, TSHIQI

The Supreme Court of Appeal held that s 118(1) of the Local Government Municipal Systems Act requires a municipality to issue a clearance certificate upon payment of all amounts due for municipal services, rates, and taxes incurred in the two years preceding the application for the certificate. The City's policy of allocating payments to the oldest debts and withholding certificates until all historical debts are paid contradicts the express language of the statute. The court emphasized that statutes interfering with established rights must be strictly construed and that implied terms cannot…

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• Municipal Debt Collection
• Clearance Certificates
• Statutory Interpretation
• Property Transfer