Constitutional Court rules property owners are not liable for municipal debt of previous owners

New property owners are not responsible for settling municipal debt accumulated by previous owners‚ the Constitutional Court held on Tuesday.

The Constitutional Court declared that upon transfer of a property‚ a new owner is not liable for previous debts under section 118(3) of the Local Government: Municipal Systems Act.

Read Jordaan and Others v City of Tshwane Metropolitan Municipality and Others; City of Tshwane Metropolitan Municipality v New Ventures Consulting and Services (Pty) Limited and Others; Ekurhuleni Metropolitan Municipality v Livanos and Others (CCT283/16, CCT293/16, CCT294/16, CCT283/16) [2017] ZACC 31 (29 August 2017)