Selling a home should mark a clean break between a property owner and their municipal account. Yet for some Johannesburg sellers, the bills continue long after transfer, with monthly charges, blocked accounts and even threats of disconnection creating an unexpected administrative nightmare.
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In some instances, former owners are also confronted with notices declaring meters “illegal” – despite having received clearance certificates and completed the sale process.
According to Cor van Deventer, director at Van Deventer Dowlath & Marx Inc, these post-transfer billing problems are becoming increasingly common, leaving sellers exposed to financial and administrative risk.
“These post‑transfer billing errors are no longer rare anomalies – they’ve become a recurring pattern that’s exposing sellers to financial risk even after they have legally severed ties with the property,” he states.
“We’re seeing sellers who have valid clearance certificates, closed accounts, and completed transfers, yet the City continues to bill them months later. In some cases, the new owner can’t even open their own account because the City flags a meter as illegal after transfer.”
The bills keep coming
Recent cases where we have seen this: A homeowner who sold her property in March but continued getting monthly statements for water and electricity usage generated by the new occupant. The seller did everything correctly: she obtained a valid rates clearance certificate, paid all outstanding amounts, and submitted the required closing documents, says Van Deventer. “But the City’s internal systems didn’t update the account status. As a result, the seller was still being billed for consumption she had no control over.”
In another matter, a seller received a demand for payment three months after transfer, accompanied by a warning that failure to settle the account could lead to disconnection. Van Deventer says the new owner had tried to open a municipal account in their own name but was informed that the electrical meter installed at the property was ‘illegal’ - despite the seller having received a clearance certificate confirming that all municipal requirements had been met.
“This is where the contradiction lies,” he explains. “A clearance certificate confirms that the seller has paid all outstanding amounts up to a specific date. It does not guarantee that all municipal infrastructure at the property is compliant. If a meter is flagged after the certificate is issued, the City may still take action.”
Why these errors happen
According to Van Deventer, the root causes of these post‑transfer billing errors fall into three categories:
1. Internal system delays and mismatched records: The City’s billing system doesn’t always update account closures immediately. In some cases, the transfer is recorded in one department but not synchronised across all internal systems, leading to continued billing.
2. Meter irregularities identified after transfer: Meters - particularly older or incorrectly installed electrical meters - may be flagged as illegal or non‑compliant during routine audits. When this happens, the City may block the creation of a new account until the issue is resolved, leaving the former owner’s account active by default.
3. Clearance certificate limitations: A clearance certificate confirms that the seller has paid all outstanding amounts up to a specific date. It does not guarantee that all municipal infrastructure at the property is compliant.
“These gaps aren’t the seller’s fault,” Van Deventer emphasises. “They’re structural issues within the City’s processes.”
What sellers should do before transfer
Van Deventer advises sellers to take proactive steps before transfer to reduce the risk of post‑transfer billing complications:
- Request a full municipal account history for the previous 12 months to identify any irregularities.
- Confirm the legality and registration status of all meters - especially electrical meters - before applying for clearance.
- Submit a formal account-closure request and obtain written confirmation.
- Keep copies of all documents, including the clearance certificate, transfer documents, and proof of payment.
- Record final meter readings on the day of occupation changeover.
“These steps won’t eliminate the risk entirely, but they will create a paper trail that becomes invaluable if the City continues billing after transfer,” he says.
If a seller receives municipal bills after transfer, Van Deventer recommends the following:
- Don’t pay the bill. “You are no longer the owner so you’re not liable for consumption after transfer.”
- Submit a formal dispute to the City. Under Section 102 of the Municipal Systems Act, lodging a formal dispute serves as a statutory mechanism that legally prevents the City from taking debt-collection action or executing service disconnections while the dispute remains pending. Attach your rates-clearance certificate, transfer registration documents, and proof of account closure request to the submission.
- Notify the conveyancer. They can confirm the transfer date and assist with documentation.
- Advise the new owner to escalate their account-creation request. If the meter is flagged as illegal, the new owner must resolve this with the City – it’s not the seller’s responsibility.
- Keep all correspondence. “Documentation is your protection. If the matter escalates, you need a clear record.”
Don’t panic
Van Deventer urges sellers not to panic if they receive post‑transfer bills. “These errors are frustrating, but they are resolvable. The key is to act quickly, document everything, and avoid paying for consumption that is not yours.”
Further, he believes that the City of Johannesburg urgently needs to improve internal synchronisation between departments and ensure that account closures are processed promptly. “Sellers shouldn’t be penalised for administrative delays or meter irregularities identified after transfer. The City has a duty to protect both sellers and buyers.”
