On Tuesday 29 August 2017, the Constitutional Court ruled that new home owners will not be liable for historical debt taken over from previous owners.
"This is an extremely positive step for property owners’ rights," says Tony Clarke, Managing Director of the Rawson Property Group.
He says that, buyers will have no more burden with municipal accounts reflecting historical arrears, which could equate to a few thousand to literally millions of Rands. Money saved, means that homeowners will be able to focus on upgrading their new property and saving a whole lot more for their future.
"Distressed sales and sales in execution may also become more of an attractive option to buyers than before now that the potential threat of old historical or bad municipal debt typically associated with this type of sale has been eliminated. We may also see first time buyers especially being attracted to this type of property," says Clarke.
Click here to read more about this ruling.
