Selling Sectional Title? Watch the Levy Certificate

What Is a Levy Clearance Certificate?

A levy clearance certificate is a document issued by a sectional title scheme's body corporate confirming that the seller, as the outgoing owner, has settled everything owed to the scheme, or has made arrangements the body corporate is satisfied with. Section 15B(3)(a)(i)(aa) of the Sectional Titles Act 95 of 1986 prevents the Registrar of Deeds from registering the transfer of a unit unless a conveyancer produces this certificate. In practice, this means the deeds office will simply not process the transfer without it, no matter how ready the rest of the paperwork is. It is one of the few points in a property sale where a party outside the buyer-seller relationship effectively holds a veto over timing.

Why the Body Corporate Can Hold Up Your Transfer

The certificate gives the body corporate real leverage, and it is designed to. Because a body corporate depends on levy income to maintain common property, pay insurance, and cover municipal accounts for the scheme, the law allows it to withhold clearance until the seller's account is in order. This can apply even where the amount in dispute relates to a special levy raised for urgent repairs, or to legal costs the scheme incurred trying to recover money from the unit. Sellers are sometimes caught off guard by charges they did not realise had been added to their account, and by the time this surfaces, it can already be holding up a transfer that was otherwise ready to proceed.

What Counts as Money Owing to the Body Corporate

The Act refers broadly to money due to the body corporate, not narrowly to monthly levies. This has been read to include arrear contributions, special levies raised for major works such as roof repairs or security upgrades, interest on late payments, and legal or collection costs the body corporate has incurred trying to recover what is owed. A seller who has kept up with ordinary monthly levies can still find a certificate withheld because of an unrelated special levy or a rule-contravention charge that was never resolved.

How Sellers Can Avoid a Last-Minute Delay

The most reliable way to avoid a hold-up is to request a full statement of account from the managing agent or trustees as soon as an offer is accepted, rather than waiting for the conveyancer to chase it closer to registration. Where there is a genuine dispute about an amount charged, it is usually faster to query and resolve it early than to contest it once a registration date is looming. The Act does allow a seller to make provision for payment, rather than settle the account immediately, provided the body corporate is satisfied with the arrangement, which can help where funds are tied up until the sale proceeds are paid out.

What Buyers Should Check Before They Sign

Buyers have a stake in this process too, since a stalled transfer delays occupation and can complicate bond and moving arrangements on their side as well. Before signing an offer to purchase on a sectional title unit, it is worth asking the seller's agent whether the levy account is up to date and whether any special levies have been raised or are under discussion for the scheme. This will not replace the formal certificate the conveyancer obtains, but it gives an early indication of whether the transfer is likely to run smoothly or hit complications closer to registration.

Levy clearance issues are rarely fatal to a sale, but they are far easier to resolve early than at the eleventh hour, and having the right person chasing the certificate from day one makes a real difference to how smoothly a transfer proceeds. If you are buying or selling a sectional title property in Johannesburg and want the process managed properly from offer to registration, our conveyancing team can guide you through what needs to be settled, queried, or negotiated before the deal closes. Get in touch early, and let the paperwork be our problem while you focus on the move.