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South Africa decisions
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Nero and Another v ABSA Bank Limited and Others (15785/2023) [2024] ZAWCHC 417 (10 December 2024)
The High Court dismissed an application to refer disputed mortgage-account issues to oral evidence and held the main application would lapse if not re-enrolled.
Gauteng Provincial Government : Department of Human Settlements and Others v Busha and Others (9074/2020) [2024] ZAGPJHC 138 (19 February 2024)
The High Court cancelled a deed transferring an entire erf to housing beneficiaries after finding the transfer was an administrative mistake.
Free State Development Corporation v Green and Others - Appeal (A33/2023) [2023] ZAFSHC 512 (18 December 2023)
The respondents' entitlement to transfer of the property was suspended until they paid for and obtained the rates clearance certificate as required by the sale agreement. Their failure to fulfil this suspensive condition for nearly five years meant the appellant's obligation to transfer did not arise. The respondents launched proceedings prematurely, without notifying the appellant of payment or providing the certificate. The court a quo erred in granting the orders compelling transfer and awarding costs against the appellant. The appeal is upheld, the orders are set aside, and the applicatio…
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Sombinge v Ethekwini Municipality and Others (D10016/2022) [2023] ZAKZDHC 80 (13 October 2023)
The court dismissed an application to compel a municipality to shift outstanding municipal debt from property-related accounts to personal accounts and issue a rates clearance certificate.
Maclachlan and Another v City of Johannesburg Metropolitan Municipality and Others (2020/28164) [2022] ZAGPJHC 243 (22 April 2022)
The court found the municipality delayed clearance figures and awarded costs against it, including 80% attorney-and-client costs from 22 December 2020.
Mogale Local Municipality v YYY Trading CC (00016/2018) [2019] ZAGPJHC 165 (21 May 2019)
The Municipality failed to discharge its onus to prove the correctness of its accounts and the basis for the charges attributed to YYY Trading CC. The evidence did not support the assertion that the debt was due to historical water consumption, nor did it establish a valid basis for the charges raised. The Municipality's witnesses relied on assumptions and could not explain key entries or the installation and operation of the water meter. The payment made by YYY Trading CC was not in error but under protest to obtain a rates clearance certificate, and the Municipality did not fulfil its const…
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Mogale Local Municipality v YYY Trading CC (00016/2018) [2019] ZAGPJHC 524 (29 March 2019)
The Municipality failed to discharge its onus to prove the correctness of the accounts and the basis for the charges attributed to YYY Trading CC. The evidence did not support the assertion that the debt was due by YYY Trading CC, nor did it establish the correctness of the water meter readings or the existence of a consumption agreement. The Municipality's records and explanations were inconsistent, and it did not provide sufficient evidence to justify the charges. The payment made by YYY Trading CC was not made in error but under protest to obtain a rates clearance certificate. The Municipa…
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Nelson Mandela Bay Municipality v Amber Mountain Investments 3 (Pty) Ltd (576/2016) [2017] ZASCA 36; 2017 (4) SA 272 (SCA) (29 March 2017)
The Supreme Court of Appeal held that the relevant statutory provisions, when read together, do not entitle a municipality to require payment of property rates for the entire financial year as a condition for issuing a rates clearance certificate. The obligation to pay rates arises within the financial year, and only debts that have become due in the two years preceding the application for the certificate may be demanded. The municipality's policy requiring payment of future rates is ultra vires and invalid. The respondent was only obliged to pay rates up to the date of transfer, and the muni…
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Changing Tides 17 (Pty) Ltd N.O. v Portion of Erf 366 Wapadrand CC and Others (24135/2010) [2016] ZAGPPHC 1046 (15 December 2016)
The High Court ordered a homeowners association to issue a clearance certificate after finding the claimed debt was not properly substantiated and had prescribed.
City of Tshwane Metropolitan Municipality v Mitchell (38/2015) [2016] ZASCA 1; [2016] 2 All SA 1 (SCA); 2016 (3) SA 231 (SCA) (29 January 2016)
The majority held that section 118(3) of the Municipal Systems Act creates a statutory hypothec over property for all municipal debts, which survives transfer of the property, including transfers following a sale in execution. There is no indication in the Act that the legislature intended to extinguish the hypothec in such circumstances, nor is there any statutory exception analogous to the common law rule for consensual hypothecs. The municipality retains its security and may perfect it by obtaining a court order and selling the property in execution to recover historical debts. The respond…
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