Before your property transfer can be registered at the Deeds Office, one document stands between you and the finish line: the rates clearance certificate. Without it, the Registrar of Deeds simply will not proceed — no exceptions. Here is exactly how it works.

Think of the clearance process as the municipality's way of confirming that the property you're about to buy hasn't been riding on someone else's unpaid account. It protects buyers, it protects the municipality, and — once you understand the process — it is surprisingly straightforward. Your conveyancer handles the heavy lifting, but knowing what's happening in the background puts you firmly in the driving seat.

Step 1

How We Request Clearance Figures from the Municipality

The first move in the clearance process belongs to your conveyancer. As soon as the transfer file is opened, the attorney's office contacts the relevant municipality — whether that's the City of Cape Town, Stellenbosch Municipality, or wherever the property is located — and formally requests what are known as "clearance figures".

This request is submitted with details identifying the property: the erf number, title deed reference, and the registered owner. The municipality then calculates everything outstanding on that account, including service fees, surcharges, property rates, and any other municipal charges, and quotes a total amount that must be settled before a clearance certificate can be issued.

Why does this happen early? Your conveyancer requests clearance figures at the start of the process — not at the end — because municipalities can take some time to respond, and paying the figures still takes additional days before the certificate is issued. Building this in early keeps your transfer timeline on track.

Step 2

What Are Clearance Figures? The Amount to Be Paid

Clearance figures are not simply the seller's outstanding balance — they're a forward-looking calculation. The municipality quotes the total amount required to wipe the slate clean on the property account right up to an anticipated date of registration, and then adds a buffer period beyond that.

The typical clearance buffer period is 3 months in advance.

In practice, clearance figures are calculated to cover roughly two to three months ahead of the date of the request. The logic is simple: registration of transfer takes time, and the certificate needs to remain valid throughout the process. By paying rates in advance for the next few months, both the seller and the conveyancer have a comfortable window to complete everything before the certificate expires.

This advance payment is always the seller's responsibility. It is one of the items that will appear in the seller's account when your conveyancer prepares the final financial statements. The buyer then reimburses the seller for any portion of the prepaid period that extends beyond the actual date of registration — but we'll get to that in the pro rata section.

"The clearance certificate certifies that all amounts due for municipal service fees, surcharges, rates, levies and taxes during the two years preceding the application have been fully settled." — Local Government: Municipal Systems Act 32 of 2000, Section 118

Note that the municipality's check goes back two full years. It's not just about the current month's account — the clearance certificate confirms that nothing has been left outstanding for the preceding two years either. Any historic shortfall must also be settled before the certificate will be issued.

Critical Rule

How Long Does a Clearance Certificate Last? The 60-Day Rule

Time-sensitive — don't miss this: A rates clearance certificate is only valid for 60 days from the date it is issued. This is a hard statutory deadline. Even if the certificate itself shows a later expiry date, the 60-day cap applies regardless.

This 60-day window exists because the certificate is essentially a snapshot of the property's financial standing at a particular moment. Rates and taxes continue to accrue daily, so a certificate that's months old gives a misleading picture. The Deeds Office is required by law to check that a valid, in-date certificate is lodged at the time of registration.

Date of Issue → 60 Days

The clock starts ticking the moment the municipality signs and issues the certificate — not from the date you paid, and not from the date your conveyancer receives it.

Statutory, Not Discretionary

The 60-day rule comes directly from the Local Government: Municipal Systems Act. No registrar, no attorney, and no municipality can waive or extend it unilaterally.

Must Be Lodged with Transfer

The certificate is physically lodged at the Deeds Office as a supporting document alongside the deed of transfer. If it has expired, the whole batch gets held up.

When Things Slip

What Happens If Registration Is Delayed Beyond 60 Days?

Property transfers don't always run to schedule. Bond approvals get delayed. Documents arrive late. The Deeds Office has its own processing queue. When the combination of these factors means that registration won't happen before the clearance certificate expires, your conveyancer needs to take action.

Identify the Risk Early

A good conveyancer monitors the 60-day window proactively. As the deadline approaches and registration looks unlikely, the attorney flags this to all parties and prepares to request an extension.

Apply to the Municipality for an Extension

The conveyancer contacts the municipality and applies to extend the validity of the clearance certificate. This is a formal request and requires both an extension fee and further advance payment of rates and taxes to cover the additional period.

Top-Up Payment Is Made

The seller (through the conveyancer) pays the additional rates required for the extended period. This is added to the seller's account and forms part of the pro rata adjustment with the buyer at registration.

Extended Certificate Issued

The municipality issues an extended certificate, and the transfer proceeds with a fresh valid clearance certificate in hand. The clock effectively resets for another 60 days from the new date of issue.

A practical note: Extensions aren't unusual and shouldn't cause alarm. They're a routine part of managing a transfer that's taking longer than expected. Your conveyancer will handle the process entirely — you simply need to ensure that the funds for any additional top-up payment are available timeously.

The Money Split

Pro Rata Rates: Splitting the Bill Between Buyer and Seller

Here's one of the most misunderstood aspects of the clearance process — and understanding it will save you from a nasty surprise when you see your transfer account.

Remember that the seller pays rates in advance, covering several months beyond the anticipated date of registration. That advance payment doesn't simply disappear when transfer is registered — the buyer, who becomes the new owner on registration day, effectively steps into the benefit of those prepaid rates for the remainder of the covered period.

How the Pro Rata Split Works: Example: Seller pays 3 months of rates in advance. Transfer registers halfway through month 2. The buyer owes the seller for the remaining half of month 2 plus all of month 3 — being the period during which the buyer is already the owner but the seller's prepayment is still running.

In practical terms, this refund appears on the buyer's transfer account as a debit item: "pro rata rates and taxes payable to the seller." It is calculated from the date of registration to the end of the last month for which the clearance certificate was issued. The same amount appears as a credit in the seller's account — because the seller already paid it.

What if the agreement says rates run from date of occupation?

Some sale agreements provide that rates and taxes are payable from the date of occupation rather than from the date of registration. In that case, the pro rata split is calculated from occupation date rather than registration date. This is relatively common when the buyer moves in before transfer is registered.

Is the pro rata amount significant?

It depends on the property's monthly rates bill. For a modest residential home, the pro rata amount may be a few hundred rand. For a larger property or commercial transaction, it can run to several thousand. Your conveyancer's account will show you the exact figure before registration.

Sectional title has a separate pro rata — levies

If you're buying a sectional title property (flat, townhouse, apartment), there is a second pro rata calculation alongside the municipal rates one: pro rata levies payable to the body corporate. The seller will have paid levies in advance to the managing agent, and the same refund principle applies. Both amounts appear separately on your transfer account.

Step 3

Paying the Municipality & Obtaining the Certificate

Once the clearance figures arrive from the municipality, the conveyancer presents them to the seller. The seller is responsible for settling this amount, and typically does so by paying it to the attorney's trust account, from which the attorney then pays the municipality directly.

Clearance Figures Received

The municipality provides the total outstanding — including any historic arrears going back two years and the advance period. The conveyancer reviews the figures and presents them to the seller.

Seller Deposits Funds

The seller pays the clearance amount — either directly to the conveyancer's trust account or in some cases directly to the municipality, depending on the municipality's preferred process. Most Cape Town area municipalities accept payment via EFT.

Payment Submitted to Municipality

The conveyancer pays the municipality. Note that this payment does not happen the moment the funds arrive — there can be processing time involved, particularly with larger municipalities that process payments in batches.

Certificate Issued

Once the payment is processed and reflected on the municipality's system, the clearance certificate is issued. This certificate is the official confirmation that the property's municipal account is clear and the transfer may proceed.

Certificate Lodged at Deeds Office

The clearance certificate is included in the bundle of documents lodged at the Deeds Office on the day of registration. The Registrar of Deeds checks that the certificate is present and still within its 60-day validity period before proceeding with registration.

Note for buyers: the admin fee. There is a small tax clearance certificate fee that typically appears on the buyer's account (not the seller's). This is the municipality's administrative charge for processing the clearance figures request — it is separate from the clearance figures themselves and is a minor cost, but it does appear on your account.

When It Goes Wrong

Municipality Errors: What to Do If Figures Seem Wrong

Municipalities are human institutions — and their records are not always flawless. Billing errors, misallocated payments, incorrect property descriptions, and outdated valuations can all lead to clearance figures that appear inflated or simply don't add up. If you believe the figures are wrong, you have both the right and the practical ability to challenge them.

The figures look too high — what should I do?

Request a detailed breakdown from the municipality. Ask for a full statement of account showing every charge included in the clearance figure calculation. Compare this against the seller's own billing records and payment history. Discrepancies are often traceable to a specific billing period or a payment that was not correctly allocated to the account.

There are charges for a property I don't recognise — could it be a different property?

Yes — account merging errors can occur, particularly in large municipalities with legacy data systems. If charges appear to relate to a different property or account, your conveyancer can raise a formal query with the municipality's clearance department requesting a correction. In some cases, a senior official at the municipality needs to intervene to split the accounts before the correct figures can be issued.

The municipal valuation seems outdated — can the rates calculation be challenged?

A valuation objection is a separate process from the clearance, and pursuing it mid-transfer is rarely practical. However, if the rates have been calculated on a clearly incorrect valuation, your conveyancer can raise this with the municipality's rates department. Be realistic about timing — municipalities move slowly, and the transfer timeline is your priority. It may be more sensible to proceed with the transfer and pursue the valuation challenge afterwards.

Can we just pay under protest and challenge later?

Yes — in some cases, paying the disputed amount to avoid delaying the transfer and then formally claiming a refund from the municipality is the most pragmatic path. Your conveyancer can advise whether this is appropriate in your specific situation and help you document the basis of any refund claim.

Your conveyancer is your first call. Don't contact the municipality directly if the figures seem wrong. Your conveyancer deals with municipal clearance departments regularly and knows the escalation paths. A query raised by an attorney on firm letterhead almost always gets a faster, more accurate response than an individual phone call from a property owner.

A Special Case

Rates Clearance for Sectional Title Units

If the property being transferred is a sectional title unit — a flat, townhouse, apartment or unit in an estate — the clearance picture becomes slightly more layered. Two separate clearance processes run alongside each other, and both must be completed before registration can happen.

Sectional Title — Two Clearances Required: Municipal Clearance and Levy Clearance. In a sectional title scheme, there is a body corporate responsible for managing the common property. The body corporate levies monthly contributions from all unit owners to cover maintenance, insurance, and running costs. These levies must also be paid up to date before transfer can be registered.

What's Required
Municipal clearance certificate — confirms that all rates and taxes on the unit are current, going back two years. Obtained from the local municipality (e.g. City of Cape Town).
Levy clearance certificate (also called a levy certificate) — confirms that all body corporate levies, special levies, and any other contributions to the scheme are fully paid. Issued by the managing agent of the body corporate.
HOA clearance — if the scheme also has a Home Owners' Association with its own title deed condition, a separate clearance from the HOA is required as well.
Pro rata levies — just like municipal rates, any prepaid levies create a pro rata refund obligation from buyer to seller. This appears as a separate line item on your transfer account.

There is one exception worth noting: when the very first unit in a newly established sectional title scheme is transferred, the scheme's body corporate doesn't yet exist. In that case, the developer holds responsibility for all rates on the entire land and buildings. The developer must obtain a clearance certificate from the municipality covering the full extent of the scheme's land and buildings, and this certificate is lodged with the first unit transfer.

From the second unit transfer onwards — once the body corporate has been formed — each individual unit requires its own rates clearance certificate from the municipality and a levy certificate from the body corporate.

Exclusive Use Areas: Have a parking bay or garden allocated to your unit as a registered exclusive use area? These are real rights over the common property, and if they're separately rated by the municipality (which has been the case since 2009), they also require their own clearance certificate or a letter from the municipality confirming that the area is not separately rated. Your conveyancer will check this automatically.

The Bottom Line

Your Quick-Reference Checklist

Keep this summary handy — whether you're buying or selling, these are the clearance essentials you need to know.

Seller's Responsibility

Pay the clearance figures (typically 3 months in advance). Also responsible for settling any historic arrears on the property account going back 2 years.

Buyer's Responsibility

Reimburse the seller via pro rata rates for the period from registration to the end of the prepaid period. Also pays a small municipal admin fee.

The 60-Day Window

The certificate must be lodged while still valid. If registration is delayed, the conveyancer applies for an extension — at a cost that flows through the seller's account.

Sectional Title Extra

Two clearances run simultaneously: municipal rates and body corporate levies. HOA clearance may also be required. Pro rata applies to levies too.

Getting Clearance: The Step-by-Step Process