CONSTITUTIONAL COURT CONFIRMS:
“ OWNER, NOT TENANT, RESPONSIBLE FOR TENANT’S
ELECTRICITY ARREARS!”
Yesterday the Constitutional Court gave judgment in 3 cases concerning the constitutionality of section 118(1) of the Local Government:Municipal Systems Act, as well as section 50 of the Gauteng Local Government Ordinance No 17 of 1939. Both these sections preclude the transfer of immovable property unless all electricity and water consumption due to a municipality has been paid for a period of 2 years before the certificate is issued (in Gauteng, 3 years!).
But what does this really mean? Well, if the owner of a freehold property rents the property out to someone else, and the tenant neglects to pay water and lights consumed on the property to the Council, then ultimately the owner of the property will have to pay the water and lights in full when he sells the property. In fact, the owner will have to pay the water and lights of the tenant even if the tenant opened his own water and lights account in his own name!
Whilst we feel that the Councils should be responsible for pursuing the tenant in these circumstances, the Councils don’t appear to have the infrastructure to do so. The judgment will certainly lead to greater owner accountability.
Sectional Title Update With . . .