PROPERTY OWNERS NO LONGER LIABLE FOR HISTORICAL DEBT

TO ALL ESTEEMED BUSINESS PARTNERS

Number

33/2016
The Municipal Systems Act provides in section 118(3) that so-called ‘historic debt’, i.e. debt relating to a property which is older than two years, remains a charge against the related property. Our courts in the past have held that the implication is that a new owner of such property can therefore be held liable for such debts.

The Gauteng High Court (Pretoria) recently ruled that this provision is unconstitutional and that municipalities may not hold a property owner liable for a previous owner's historical municipal debts. The new owner has no connection to the historical debt and the the section unjustifiably limits the new owner's property rights under the Constitution.

For any queries please contact our property law division at the details below:

Allen West
Tel: 012 425 3549
awest@macrobert.co.za

Daleen Loubser
Tel: 012 425 3489
dloubser@macrobert.co.za

Disclaimer: This newsflash is for general information only and should not be used as legal or professional advice. No liability can be accepted for any errors or omissions, nor for any loss or damage arising from reliance and any information therein