Hasty house buyers could face rate bill headaches

Buyers could face problems if rates and water bills are not paid.

Regular warnings by property professionals about the danger of trying to move into a property on which the rates or the water and services bills have not been paid, have gone unnoticed by many buyers, says Anton du Plessis, chief executive of Vineyard Estates.

"It is legally impossible to take transfer of a property without a rates clearance certificate from the council, but sometimes where the seller cannot afford to do so, the buyer will offer to make these payments on the seller's behalf provided he can then knock the amount off the price.

"That apparently logical step can, however, lead to problems because there is always a chance that the seller has already secretly done a preliminary sales deal with another buyer, or ceded it to another member of his family. There are dozens of ways in which he could still duck out of the sale - even though the sale agreement has been signed."

Du Plessis says he knows of cases where the unpaid rates were over R100 000. He has recently had a case involving an expensive home where the buyer moved into the property a month before the expected transfer date. Despite being given repeated reminders to pay his R75 000 outstanding rates and water bills and promising to settle them, the seller neglected to do so. In desperation the buyer then paid the outstanding amounts three days before the occupation date. Despite numerous calls to the water department advising them of the payment, and requesting reconnection, the buyer still had to spend the first two days in his new home without running water.

Weekend Property supplement (Saturday Argus)

Posted at 10:43AM Nov 16, 2009 by Editor in Residential  |