Did you know you need a rates clearance certificate when selling your house?
On the verge of selling your home? Find out more about the rates clearance certificate you need to obtain for the transfer to go through.
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If you’re embarking on selling your first home, you might not be aware that you need to obtain a rates clearance certificate (RCC), before the transfer can happen. This is a document that proves that you as the seller have your rates bill in full, and no amount is outstanding before the sale goes through.
Whether you own a freehold property or sectional title, you are required to obtain the certificate so that the conveyancer can present the document when putting the transfer through at the Deeds Office. The transfer cannot go through without the submission of the RCC.
Additionally, the payment of any rates that occur whilst the transfer is taking place must be actioned. The conveyancer will request the amount payable for both the rates and the certificate from the City Council. Once the seller is advised of the amount, it is important to note that they must pay between two to six months worth of rates in advance. This is to cover the use of municipal services during the transfer. If the transfer happens in a shorter space of time than planned for, the seller is owed a refund, and they must request it directly from the municipality.
Selling a house is not one that happens overnight, and once you’ve found a buyer, you must initiate the process to get your rates clearance certificate. Without the certificate, the transfer cannot go through. If you’re looking for information to help guide you through the selling property, pop on over to Private Property for more tips and advice.