The above case addresses the interpretation of Section 118(3) of the Local Government Municipal Systems Act, 32 of 2000 (the Act). More specially, whether the security provided for in Section 118(3) of the Act in favour of a municipality, for moneys owed to it for services rendered in respect of immovable property, is extinguished when the property is sold at a sale in execution and subsequently transferred to the purchaser.
Section 118 provide as follows:
‘(1) A registrar of deeds may not register the transfer of property except on production to that registrar of deeds of a prescribed certificate –
(a) issued by the municipality or municipalities in which that property is situated; and
(b) which certifies that all amounts that became due in connection with that property for municipal service fees, surcharges on fees, property rates and other municipal taxes, levies and duties during the two years preceding the date of application for the certificate have been fully paid.
(3) An amount due for municipal service fees, surcharges on fees, property rates and other municipal taxes, levies and duties is a charge upon the property in connection with which the amount is owing and enjoys preference over any mortgage bond registered against the property.’
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