The delays in issuing rates clearance certificates in a timely manner is wreaking havoc in the Durban property market, with estate agents in the industry having to wait for months for the certificates.
The delays in issuing rates clearance certificates in a timely manner is wreaking havoc in the Durban property market, with estate agents in the industry having to wait for months for the certificates.
One frustrated estate agent told “The Mercury” that she has been waiting for the certificate that she applied for in August.
The eThekwini Municipality has acknowledged the challenge, with mayor Mxolisi Kaunda claiming this month that there had been a drastic improvement since November 1. He said the performance in this area was standing at about 83.9%.
The rates clearance certificate is an important document when completing a property transaction. A major contributing factor to the delay in the issuing of the certificates is the City’s failure to read meters.
The municipality’s chief financial officer, Dr Sandile Mnguni, told members of the executive committee recently that the City will work hard to ensure that it finalises hundreds of rates clearance certificates each month.
A Durban estate agent speaking on condition of anonymity said the mayor’s claims were inaccurate, adding that the situation was frustrating as she had been waiting months for her certificates.
“I am still waiting for one of my clearances which was applied for on August 5.”
Responding to the mayor’s claim that the situation had improved, she said: “Maybe with the new clearances, but the old ones are still taking forever.”
“It’s highly frustrating. Clients that have bought elsewhere can’t pay for their new properties. Thousands of people are suffering as deals are sitting in PMB, waiting for lodgement but do not have rates clearances because meters have not been read for more than six months.
“The economic wheel has come to a grinding halt, everything and everyone has been affected. The frustration level is very high! Attorneys, estate agents, buyers and sellers are highly frustrated at the moment,” she added.
Another estate agent said the issuing of certificates was “taking a bit longer than normal because of the water meter readings. We do our deals, and once the legal process starts, we get on another sale. For agents, it just takes longer to get our commission, which can be frustrating.”
DA councillor Andre Beetge said recently that the real estate market in eThekwini was virtually on the brink of disaster as a result. He said that he had learnt a few weeks ago that not more than 50% of certificates were actually being processed.
“Those who have ever bought or sold a property can attest that such transactions cannot proceed without the all-important rates clearance certificate, issued by the local municipality, to confirm that all debt had been settled by the previous owner, thus leaving the new occupant with a clean slate.”
He said that meters had not been read since June 2023 and this was hampering the confirmation of debt and the issue of the certificate, essential to buy or sell property.
“The result of which is real estate practitioners being deprived the opportunity of earning a living, being unable to service personal debt, agencies being in jeopardy of closure as transactions remain pending, conveyance attorneys biting their nails as year-end approaches, parents on edge and unable to confirm new school commitments for 2024, job transfers on hold, time-sensitive bank bonds being reconsidered against the backdrop of increased interest and entomology certifications expiring,” he said.
Kaunda said a few days ago the City was giving the issue of rates clearance its full attention.
“In fact, the issuing of rates clearance is a matter of strategic importance to the City and it is one of the indicators of economic growth.
“We want to commend our revenue unit for accelerating this process from November 1 despite the challenges of meter reading,” he claimed.
Kaunda said the improvement can be attributed to improved meter reading, constant engagements with the conveyancing fraternity and communication.
“In addition, in order to improve the issuing of rates clearance certificates going forward, the City is introducing a rates clearance system, which will reduce the turnaround time on the issuing of the rates clearance certificate to a period of less than a month,” he said.
The Mercury