As per the discussions held between the City of Johannesburg and the Deeds Office of Pretoria, with regards to the rating of Long-term lease for both Full Title and Sectional Title properties.
The City’s will be issuing Rates Clearance Certificates on the Cession of Long-term Lease as from the 1 August 2024. On lodgement the Deeds office should call for a Rates Clearance Certificate.
The following phrase was removed from the MPRA letter that is circulated annually “cession of lease agreements” attach find the amended MPRA letter.
RE: The Municipal Property Rates Act No. 6 of 2004:
1 In terms of section 89(3) of the above referred to Act, registrars of deeds are compelled to call for rates clearance certificates with the transfer of all “property” as defined in section 1, as from 2 July 2009.
2 As an interim measure, and until a final arrangement as to the rating of property is made, the following measures will apply:
2.1 Registrars of Deeds need not insist on rates clearance certificates for rights registered against immovable property, as provided for in the definition of property. This will have the effect that no rates clearance certificates need be called for the registration of inter alia, exclusive use areas, cessions of real rights of extension and the cession of servitudes.
2.2 With regard to the transferring of sections simultaneously with the opening of the sectional title register of phase development, the clearance certificate for the land will suffice for the registration of the simultaneous transfers. Thus no separate rates clearance certificate will be required for the units transferred.
3 As already alluded to, the above is merely an interim measure until such time as final measures are put into place. Registrars will be informed in writing when the final measures are to become operative.
4 Kindly note that the above measures only cover “property” within the jurisdiction of the City Council of Johannesburg.
5 This notification would be valid until 31 December 2024 or until such time before said date when the above measures are put in place.
Regards
Jacques Maart
Deputy Director Clearances
City of Johannesburg
