ASSISTANCE TO SELLERS AND PURCHASERS AFTER REGISTRATION OF TRANSFER OF PROPERTIES

 

OUR SERVICES INCLUDE

MUNAR assists transferring attorneys, Purchasers and Sellers after transfer of properties to:

1.               We load the correct contact details of the Purchaser.

2.               We obtain a quote from Council of the amount due to pay the deposit for Electricity and Water by the Purchaser.

3.         We collect the cheque from the Purchaser to load the deposit and put the Electricity and Water on the name of the Purchaser.

4.              We close the Seller’s Water and Electricity Account and load the actual readings of electricity and water on the date of occupation.

5.               We request the Council to pay the Seller’s Refund to the Transferring Attorney after the Purchaser’s Assessment Rates Account is linked to the Purchaser’s Electricity and Water Account.

Only approximately 10% of all refunds are repaid to the Sellers after transfer of properties.  There is an estimated R2,2 billion in unpaid refunds in the hands of the Council.  The rest of the Refunds are kept indefinitely by Council.

If a Consumption Agreement is not concluded between the City and the Purchaser, the Seller’s Electricity and Water account is used to Council to debit Electricity and Water consumption.  This creates endless problems when the Purchaser is incorrectly billed, run into arrears, want to draw his statements from the internet or when he sells the property.  The Seller can also not obtain his Refund.  If the Purchaser refuses to co-operate, the Seller can also terminate his supply agreement with the Council.

We are fully equipped and geared to deal with all the processes.

 

 

The transfer process as far as it relates to the Seller and the Purchaser.

In the diagram, it will be noticed that there are a number of procedures involved. 

1.            The first procedure relates to the obtaining of Rates Clearance certificates.  The Transferring Attorney requests the Rates Clearance Figures from the Council.  An amount is advised by Council.  This amount includes the current amount due, plus a provision for 5 months in advance.  The transferring attorney collects these moneys from the Seller and pays it to Council.  The Transferring Attorney then pays the amount due to Council.  The Council then issue the Rates Clearance Certificate to the Transferring Attorney.

2.            The transfer is registered in the Deeds Office.  This is the Date of Transfer of the property in the name of the Purchaser.  The Seller is liable to pay the Assessment Rates until the Date of Transfer and the Purchaser pays the Assessment Rates after this date.

3.            The Seller vacates the property and the Purchaser takes occupation of the property.  This is the Date of Occupation.  The Seller is liable to pay for the Electricity and Water consumed until Date of Occupation and the Purchaser is liable from then onwards. (This date may also be before the Date of Transfer).

4.            The Purchaser and Seller must make sure that they agree on the actual Electricity and Water readings as on the Date of Occupation.  See the Cancellation of Consumption Agreement which must be signed by both the Seller and the Purchaser.

5.            The Transferring Attorney forwards a letter WITH ANNEXURES advising us that the transfer was registered.  This includes an Instruction to enter into a Consumption Agreement signed by the Purchaser. 

6.            We then:

6.1         Load the Purchaser’s contact details at the Council in order that the accounts of the Purchaser go to the correct address.
6.2         Obtain a quote of the amount due as a deposit for Electricity and Water.
6.3         Collect a cheque from the Purchaser to pay the deposit and our fee of R1 250,00.
6.4         Put the electricity and water on the name of the Purchaser.
6.5         Close the Seller’s electricity and water account.
6.6         Sent the signed Agreement to put the Electricity and Water on the name of the Purchaser and his deposit slip to the Purchaser.

7.            The Deeds Office advises the Council of transfer of the property in the name of the Purchaser. The Council then links the Purchaser’s Assessment Rates Account to the Purchaser’s Electricity and Water Account. This may take 6 months after registration of transfer.  This process may take 3 months.

8.            The Council then debit the Purchaser from Date of Transfer with Assessment Rates and with Electricity and Water from the Date of Occupation.

9.            As the Council’s requirements for the repayment of the Refund to the Seller are:

• Proof of Transfer of the property
• A letter WITH ANNEXURES from the transferring attorney requesting payment of the Refund
• Opening of the Purchaser’s “Owner’s Account” by Assessment Billing Section
• Opening of the Purchaser’s Electricity and Water Account and the payment of the deposit. 

10.       We then request the Council to Refund to the Seller the balance available on the account as on Date of Transfer, less the usage of Electricity and Water until the Date of Occupation. We also advise the Transferring Attorney and Seller thereof.

11.         We make sure that the Council pay the Refund to the Seller.  When the Refund is paid to him, the Transferring Attorney account to the Seller and pays our fee of 10% of the Refund.

PLEASE NOTE THAT WE OPEN ACCOUNTS, LOAD DETAIL AND COLLECT REFUNDS.  WE DO NOT GUARANTEE THAT THE COUNCIL WILL OPEN ACCOUNTS, DEBIT CORRECTLY OR PAY THE CORRECT REFUND TO THE SELLER.  IF FURTHER QUERIES ARISE, WE WILL DEBIT ACCORDING TO OUR NORMAL TARIFFS.