What happens about the rates account after the sale of a property?
Once the transfer is complete, the council will transfer the rates account from the seller to the buyer. Neither party needs to get involved with this. This process usually takes about 30 days from date of registration of transfer. It could take longer – sometimes it can take months.
The buyer is not allowed to open any services accounts before the council has transferred the rates account.
Once the council has done this, the buyer can open up water, Pik-It-Up and electricity accounts. If the electricity account falls under Eskom, then the buyer must approach Eskom. The buyer must follow their procedure to open an account.
What is the situation with occupational rental?
Most “offers to purchase” (OTPs) contain a clause about when occupation should occur. Occupation should happen on transfer of the property from the seller to the buyer.
But due to certain circumstances, this may not coincide with the date of transfer.
The parties may agree that the buyer takes occupation before registration of the transfer. In this case, the buyer will pay occupational rent to the seller as per the contract.
Or the parties may agree that the seller remains on the property after the transfer. Then the seller will be liable for occupational rent.
