Who pays for the levy clearance certificate
In the transfer of a sectional title property, the seller is liable for all levies up to the date of registration of the transfer of the property into the name of the purchaser. As a safety measure, the managing agent usually requires an advance payment before issuing the clearance certificate to cover any rate liability that may arise if transfer is registered after the estimated registration date. Any overpayment is reimbursed to the seller.
Even though the seller pays the levies, the purchaser is liable for the cost of obtaining the actual levy clearance certificate. This is because the latter cost is an administrative disbursement for which the purchaser is generally liable, unless specifically agreed to otherwise by the seller and purchaser.
05 Aug 2015
Author Smith Tabata Buchanan Boyes
