Tuesday’s Constitutional Court judgment declaring new homeowners not liable for historical debt of former owners has helped bring clarity in the property sector. The ruling clarified an issue that had left municipalities with more questions than answers, Tshwane mayor Solly Msimanga said on Tuesday. He said the council would study the judgment. Thirteen applicants had approached the Constitutional Court to confirm the previous finding of the High Court in Pretoria that section 118(3) of the Municipal Systems Act was unconstitutional. Section 118(3) provided that “an amount due for municipal service fees, surcharges on fees, property rates and other municipal taxes, levies and duties is a charge upon the property in connection with which the amount is owing and enjoys preference over any mortgage bond registered against the property”. The 2013 judgment led certain municipalities to take the act to mean new buyers took over historical debt on properties on purchase as the act stipulat...
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