By Thomas Thale

THE City of Johannesburg is "extremely satisfied" with the Constitutional Court ruling that property owners are responsible for the payment of arrears accumulated by their tenants for municipal services.

The court on Wednesday overturned an earlier decision by the Eastern Cape High Court that the legislation which made the transfer of property conditional on the payment of all outstanding electricity and water consumption charges, allowed "for arbitrary deprivation of property and infringed on the constitutional rights of property owners".

While agreeing that the legislation deprived people of property, the Constitutional Court judgment held that such deprivation was not arbitrary.

Judge Zak Yacoob, who delivered the majority judgement, held that "the deprivation is not insignificant and that the purpose of the provision is to place the risk on the owner of property if occupiers did not pay for electricity and water they used". The judge described this purpose as "laudable" as it "encourages payment as well as a sense of civic responsibility".

The decision clarifies the right of municipalities to compel people selling their property to settle any arrears accumulated by their tenants before being issued with clearance certificates.

"The judgment confirmed that the City is applying best and credible practices in dealing with its clients. This was a balanced judgment in that it strengthened the hand of the municipality and also gave something to the rate-payers as well," said City spokesperson Gabu Tugwana.

But Brian Kirchman, CEO of the South African Property Owners Association, expressed disappointment, saying: "It is unfair to hold property owners responsible for collecting debts for municipalities. Now tenants can default on their payments knowing that the owner will be held responsible for the arrears."

Kirchman said collecting arrears from tenants would increase the costs of operating a property business. "This is another cost to be borne by the landlord, who has to check on tenants to make sure they pay their rates. This only increases the cost of running buildings."

Source: Jonews