Page 23 - SilverLakes_Issue 3_2022

PROPERTY NEWS

WHAT HAPPENS TO YOUR MUNICIPAL,

HOA AND HOME LOAN ACCOUNTS?

his is often a subject that leaves situation where the provision may not be Homeowners Association (HOA) levy
buyers and sellers frustrated. Here is sufficient to even cover the rates. account
Twhat you should know in a nutshell. The same procedure is followed – three
The conveyancer requests the figures and months’ levies are raised, and you need
Municipal accounts logs the change of ownership on the City of to continue servicing this account as per
To the seller: The council will require Tshwane website. If there is a refund due normal. Refunds (if any), however, are paid
three months upfront payment of your to the seller, such refund is paid over to out directly to the seller, and not to the
rates account in order for it to issue your the conveyancer, who is then responsible conveyancer.
clearance certificate. It is important to note to pay this amount over to the seller. Be
that these figures only apply to the ‘rates’ advised that these refunds from City of The buyer also signs a debit order form in
portion of the municipal account. Should Tshwane sometimes take years. favour of the HOA which will come into
registration take place sooner than three effect from the date of registration.
months, you will be due a refund. In the To the buyer: Although the local council
interim, you are still expected to service is informed of the transfer, it remains The Silver Lakes HOA is very effective with
your account, for which you will also be the buyer’s responsibility to open a new the transition, and you shouldn’t have any
refunded. municipal account. Luckily, there are problems with this process.
agencies that can assist with this process.
The reason is that your normal monthly Home Loan accounts
account contains debits for rates and Note to all: Do not make any payments It is the seller’s responsibility to inform his/
electrical and water usage. No provision into the ‘old’ municipal account after her bank of his/her intention to sell (bond
is made for usage, and should you stop registration as this account is now cancellation notice). If not, most banks will
payment of your account, it may create a effectively closed. charge a cancellation penalty fee equal
to the difference between three months
and the settlement notice that you have
provided.

The only way to avoid a cancellation
penalty is to meet the bank’s regulations,
i.e. the required notice period. Should the
bond be cancelled during this period, the
bank will charge a pro rata penalty rate,
according to the remainder of the number
of days’ notice required.

You still need to service your bond account
until transfer. You will sign a refund form
together with the bank’s cancellation
attorneys and provide your banking details
for any refunds due to you.

Contact us for any advice.

Call: 083 551 7122
Email: leroux.marlie100@gmail.com

INTRAMUROS APRIL 2022 | 21