Rates on Sectional Title Units

[Sieg]

Rates and Sectional Title Properties

Extracts

Local Government: Municipal Property Rates Act 6 of 2004

Section 1

“Owner� means a person in whose name ownership of the property is registered.

“Property� means
(a) immovable property registered in the name of a person, including, in the case of a sectional title scheme, a sectional title unit, registered in the name of a person;
(b) A right registered against immovable property in the name of a person, excluding a mortgage bond

“Rateable property� means property on which a municipality may in terms of section 2 levy a rate, . .

“Sectional Titles Act� means the Sectional Titles Act 95 of 1986

Section 2

Power to levy Rates

A metropolitan or local municipality may levy a rate on property in its area.

A municipality must exercise its power to levy a rate on property subject to section 229 and any other applicable provisions of the Constitution, the provisions of this Act and the rates policy it must adopt.

Section 3(3)

A rates policy must treat persons for rates equitably.

Section 10 – Levying of rates on property in Sectional Title Schemes

A rate on property which is subject to a sectional title scheme must be levied on the individual sectional title units in the scheme and not on the property as a whole.


Section 12 – Period for which rates may be levied

When levying rates, a municipality must levy the rates for a financial year. A rate lapses at the end of the financial year for which it was levied.


Section 24 – Property rates payable by owners

A rate levied by a municipality on a property must be paid by the owner of the property, …

Joint owners of a property are jointly and severally liable for the amount due for rates on that property.


Section 27 – Accounts to be furnished

A Municipality must furnish each person liable for the payment of a rate with a written account specifying
The amount due for rates payable
The date on or before which the amount is payable
How the amount was calculated
The market value of the property


Section 28 – Recovery of rates in arrears from tenants and occupiers

If an amount due for rates is unpaid by the owner . . ., the municipality may recover the amount from a tenant or occupier of the property, despite any contractual obligation to the contrary on the occupier or tenant, after it has served a written notice on the occupier or tenant.


Section 29 - Recovery of Rates from agents

A municipality may, despite the Estate Agency Affairs Act, recover the amount due for rates on a property from the agent of the owner, if this is more convenient for the municipality after it has served a written notice on the agent.

[Dave A]

If an amount due for rates is unpaid by the owner . . ., the municipality may recover the amount from a tenant or occupier of the property, despite any contractual obligation to the contrary on the occupier or tenant, after it has served a written notice on the occupier or tenant.

Now in the likely event that the tenant is precluded from offsetting such rates payments against rent in terms of the rental agreement, that could be very irritating.