A levy clearance certificate is a document issued by the body corporate or homeowners’ association of a sectional title scheme or a gated community, confirming that all levies and related charges on a property within the scheme or community are fully paid up to date. This certificate is necessary for the transfer of property ownership in terms of the Deeds Registries Act and it assures the buyer and the transferring attorneys that there are no outstanding amounts owed by the seller to the body corporate or homeowners’ association.
A levy clearance certificate can be withheld under the following circumstances:-
- Outstanding Levies: If the property owner has not paid their levies or any related charges, such as special levies or contributions to the reserve fund.
- Non-compliance with Rules: If the owner has violated the rules or regulations set by the body corporate or homeowners’ association, such as not adhering to building guidelines or maintenance standards.
- Unpaid Fines or Penalties: If there are any unpaid fines or penalties validly imposed on the owner by the body corporate or homeowners’ association.
Without a levy clearance certificate, the property transfer process cannot be completed, as it is a legal requirement in Deeds Offices throughout South Africa for the transfer of sectional title properties.
Article written by Richard Grant