Opening & closing of Rates Accounts after transfer

Step 1: Once a property has been sold and the property has been transferred into the Purchaser/s

name, the Deeds Office should automatically notify City Council regarding the change of

ownership.

In most cases the aforementioned does not occur and the relevant parties will have to attend

to the change of ownership at the Council. The following documentation is required:

1. Registration Letter from the Transferring Attorneys; and

2. Rates Clearance Figures together with the proof of payment.

Change of ownership may take up to 8 weeks to be finalised. Both the seller/s and

purchaser/s will have to take the documentation to Council in order for the change

of ownership to take place and for the refund to be paid to the seller/s.

Step 2: Should Council have been informed regarding the change of ownership, Council will

automatically create a new rates account for the purchaser/s.

Step 3: The Purchaser/s will now pay a deposit, which will be raised in order for the new utilities

account to be opened.

Step 4: Now the linking stage occurs whereby the purchaser/s rates account is linked with the utilities

account. Council now makes the necessary split between the purchaser/s and seller/s the

rates and utilities accounts as from the date of registration.The split between the parties can

take between 4 – 6 weeks.

Step 5: Once all the services have been linked the purchaser/s should receive their statement within

3 months. However, if the statement is not received the purchaser/s should request Council

to print a statement of account.

Step 6: As from the date of registration, it is advisable that the purchaser/s keep aside an estimate

average amount until he/she receives their statement of account.

Step 7: It is extremely important to follow up with Council to ensure that the change of ownership has

taken place and that the purchaser has requested the opening of his utilities account.

Step 8: The refund is now due and payable to the seller/s. Council will need to make the payment to

the Seller based on the pro rata share and the initial deposit. This process can take between

6 – 8 weeks. The refund is then paid to the transferring attorneys and the attorneys will then

pay the refund due to the seller/s.

For assistance in any property transfer matters kindly contact us on +27 (0) 11 465 3809 or chrisna@richeattorneys.co.za