The Rates Refund Process
A local lawyer discussed the process that sellers must follow in recovering refunds due to them from the EThekwini Municipality.
There is unfortunately considerable misunderstanding about the process that sellers must follow in recovering refunds due to them from the EThekwini Municipality upon closure of their consolidated billing account (after registration of transfer).
Conveyancers make allowances in their final accounts to affect a pro rata adjustment to date of registration between the parties for rates only.
On registration the buyer must open their own account for electricity and water with the municipality as they do not take over the sellers electricity/water account.
However where the confusion arises is the conveyancer’s adjustment is made by reference to the clearance figures given by the Municipality to conveyancers. That is not the same figures as appear on the account upon closure. There are often other debits and credits that apply and conveyancers are not advised of these.
Therefore the refund process is something between the seller and the Municipality and does not involve the conveyancer’s office at all. All conveyancers can do is provide a letter confirming registration and the form that is to be completed and submitted by seller and it’s up to seller to pursue the refund process.
What we do as conveyancer is offer to escort the seller to the appropriate place where the public can entertain refund enquiries in person. Meet in front of the Royal Hotel by appointment. The only other way is for seller to rely upon e mail communications with the refunds department, but that can be frustrating as the delays are considerable.
Bye for now – David
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