Opening and closure of Accounts

Refundsman specializes in the closing of Municipal accounts after registration of the transfer of a property the finalization of the Seller’s accounts and the opening of the Purchaser’s rates account and linking of services to that account.

What is the process to close the Seller’s accounts and finalise it after transfer of a property

After registration of transfer of a property, the Deeds Office advise the Council’s LIS (Land Information System) that transfer of a property was registered. They then update the owner’s details of the property on their system.

They then advise Rates Billing Section that the property was registered on a specific date. The Rates Billing Section then
1. Close the Rates Account of the Seller on with effect from the date of registration of transfer; and
2. Open the Purchaser’s rates account with effect from the date of registration of transfer.

At this stage, utilities still bill the Seller’s accounts and the Purchaser is not billed for utilities.

Refunds Man request finalization of the Seller’s utility accounts and the linking of utilities to the Purchaser’s rates account.

The Seller’s utility accounts are finalsed upon submission of:
1. Certified copy of ID of the Seller
2. Power of attorney signed by the Seller
3. Letter from the transferring attorney confirming the date of registration of transfer.

To link the utility accounts to the rates account of the Purchaser, we require
1. Certified copy of ID of the Purchaser
2. Power of attorney signed by the Purchaser
3. Letter from the transferring attorney confirming the date of registration of transfer.

When the Seller’s accounts are finalized, and the Purchaser’s accounts are opened and services linked, the refund of the amounts due to the Seller are determined and may be paid to him.

We deal with refunds on a separate web page.

Can I transfer an existing municipal account to a new property?

No. The Council close the Seller’s accounts and open new accounts for the Purchaser.

What services are included in a municipal account?

Assessment rates, water, sewer, electricity and refuse removal.

How long does it take to open or close a municipal account?

The Council takes about 4 weeks to open and close rates accounts. Thereafter, to de-link and link services, takes another 4 weeks.

Closing a Municipal Account

How do I close a municipal account when moving out of a property?

Physical moving in and out of a property does not force Council to close accounts. The Deeds Office advise Council of the transfer of a property. On the strength thereof, Council closes the Seller’s Rates accounts and open the Rates account of the Purchaser.

What documents are needed to close a municipal account?

To close the Seller’s rates account, the parties are not involved as the Deeds Office advise the Council of transfer of the property. Upon advice of the Deeds Office, the Seller’s Rates account is closed and the Purchaser’s Rates account is opened.

To close the Seller’s utility accounts, the following documents are required:
1. Certified copy of ID of the Seller
2. Power of attorney signed by the Seller
3. Letter from the transferring attorney confirming the date of registration of transfer.

What documents are required to open link the Purchaser’s utility accounts to his Rates account?
To link the utilities to the rates account of the Purchaser, we require
1. Certified copy of ID of the Purchaser
2. Power of attorney signed by the Purchaser
3. Letter from the transferring attorney confirming the date of registration of transfer.

Is there a notice period required to close a municipal account?

No, but, if the Seller’s utility accounts are billed but the Council does not receive payments thereon, they will see it as an account where there is default and can terminate water and / or electricity supply or start with legal action against the Seller.

How are outstanding balances handled when closing a municipal account?

If a Seller’s account is closed and there is a credit balance, on the account, it must be refunded to the transferring attorney upon request. If there is a debit balance on the account after finalization, the Council may want to collect the amount due to them. It is therefore important to transfer services to the Purchaser’s Rates Account because
1. He can immediately see that he is billed on the correct amounts and tariffs.
2. He can start to pay his Council accounts and is not confronted with a huge account months down the line.
3. The refund to the Seller can be processed.

What happens to my deposit when I close a municipal account?

When the Seller’s account is finalized, the deposit is released and will appear as a credit on the finalization invoice Will my services (water, electricity) be disconnected immediately after closing the account?

How do I ensure there are no lingering charges after I close my municipal account?

The best way to stop lingering charges to the Seller’s account, is to request finalisation of the Seller’s accounts and the payment of the refunds, if any.

What should I do if my final account statement is incorrect after closing?

If there is a dispute on finalization, the best will be
1. See what was deducted to determine the calculation of the Refund?
2. See what was added to the account till date of transfer
3. If there is a dispute, request Refundsman to intervene.

Can I close a municipal account if there are unpaid bills?

The Council may not collect moneys from a Purchaser for an amount due by a Seller. The Council account will therefore close the Seller’s accounts even if there is a debit balance on the account.

Opening a Municipal Account

What documents are required to open a municipal account?
1. Certified copy of ID of the Purchaser
2. Power of attorney signed by the Purchaser
3. Letter from the transferring attorney confirming the date of registration of transfer.

Do I need to provide proof of residence to open a municipal account?

No.

Is there an application fee for opening a municipal account?

No.

Can I open a municipal account online, or do I need to visit the municipal office?

You can open the municipal account online.

How is the deposit for a new municipal account calculated?

The deposit is calculated by determining the water and electricity account monthly debit. Multiplied by 2.

Do tenants need to open their own municipal accounts, or does the landlord handle this?

Tenants may not open utility accounts in their name. The owner is billed for Assessment Rates and utilities.

What is the process for activating water, electricity, and refuse collection in a new account?

After transfer of the property, the services remain connected. Only the accounting is done per the process herein described.

Can I open a municipal account for a commercial property?

The process for residential and commercial properties are the same.

What should I do if my application to open a municipal account is denied?

No application for the opening of accounts by owners are denied.

Closing a Municipal Account

How do I close a municipal account when moving out of a property?

If the property is transferred, you close an account by lodgment of the request plus the proof of registration of transfer. If there is a tenant account which must be closed, the tenant must give notice to Council to move the services account to the rates account on a specific date with photos of the current reading of water and electricity readings on that date. The tenant account must also be paid on that date.

What documents are needed to close a municipal account?

To close the services account after transfer of a property, the Seller must submit
1. Certified copy of ID of the Seller
2. Power of attorney signed by the Seller
3. Letter from the transferring attorney confirming the date of registration of transfer.

I it is a tenant account which must be closed, the following documents must be lodged:
1. Certified copy of ID.
2. Power of attorney.
3. Written request to close account and transfer services to Rates account.
4. Photo of water meter number and current reading.
5. Photo of electricity meter number and current reading.

Is there a notice period required to close a municipal account?

No. The request to close a tenant account must be done as soon as possible after the tenant vacated the premises.

How are outstanding balances handled when closing a municipal account?

When a property is sold the services are paid in advance for 4 months. There is therefore, rarely, monies still due to the municipality on the services account of a property which is sold. The Seller’s account is finalized as on the date of registration of transfer. The over payment of the provision is refunded to the transferring attorney.

If it is a tenant account, the tenant must settle the account upon fnalisation.

What happens to my deposit when I close a municipal account?

When a utility account is closed, it must be finalized. Part of the entries to finalise the account, is that the deposit must be reversed (credited)| to the account.

Can I transfer my municipal account to the new owner or tenant when selling or renting a property?

The Seller cannot transfer the utility accounts to the name of the Purchaser before registration of transfer. The utility accounts are opened in the name of the Purchaser after registration of transfer.

The City of Johannesburg does no open any tenant accounts.

Will my services (water, electricity) be disconnected immediately after closing the account?

No. Services will not be disconnected immediately after closing of the utility accounts. Services will remain on and the Council will bill the Purchaser with effect from the date of registration of transfer.

What should I do if my final account statement is incorrect after closing?

If the finalization of the Seller’s account is incorrect, a detailed query must be lodged with Council.

Can I close a municipal account if there are unpaid bills?

Municipal account must be closed with effect from date of registration of transfer. If there is an amount due after finalization, the Council will collect same.

Billing and Payments

How will I receive my first bill after opening a municipal account?

The first bill, which a Purchaser will receive, is for Assessment rates. Services are linked to the Rates account. When the transferring attorney applies or clearance figures, he states the postal address of the Purchaser. The statement will then be sent to this address.

How are billing cycles managed for new municipal accounts?

The billing cycle of a new account will be as soon as the account is opened, an invoice will be available. As soon as the services are inked, a further invoice will be available. Thereafter the billing will be done on a monthly basis.

What happens to unpaid bills from the previous owner or tenant when I open a new account?

If there are amounts due on the account of a Seller or a previous tenant, the Council must collect if from that party. If may not demand payment from the new owner, or disconnect him or withhold services from him to collect the amounts due on the account of a previous owner.

How can I ensure accurate meter readings when opening or closing an account?

Normally the account is finalized on the basis of daily average consumption. If a party requires actual readings to be captured, he must submit date and time-stamped photos of the water meter (meter number and actual reading) and the electricity meter (meter number and actual reading).

Can I get a refund for overpayments when closing a municipal account?

When a municipal account is finalized, and there is an amount in credit, it must be refunded to the transferring attorney.

Special Situations

If I’m moving into a property with an existing municipal account under the previous owner or tenant’s name, can I change it to my name?

If the municipal account is in the name of the current owner and you are a new tenant, you cannot change the account to your name as the Council does not open tenant accounts.

If you recently acquired the property and the municipal account is in the name of the previous owner or a previous tenant, you must log a query to update the billing detail with Council.

How do I open a municipal account for a vacant property?

The Council will open the Rates account of the owner upon advice of registration of transfer from the Deeds Office. The Council will link water and sewer availability debits from date of registration of transfer. When you apply for water and electricity supply, they will start to debit for these services.

Can I close a municipal account if I’ve inherited a property?

No. The municipal accounts of the deceased person are closed after transfer of the property.

How do I handle municipal accounts during a legal dispute over property ownership?

If there is a legal dispute about ownership of a property, the owner registered owner of the property remains liable for the payment of the Council accounts.

What happens if the municipality delays the opening or closing of my account?

The Seller’s account will be opened and the Purchaser’s account will be opened with effect from the date of registration of transfer of the property. If there is a delay, the effective date remains fixed.

Online and Self-Service Options

Can I manage my municipal account online after opening it?
Yes. You can access the account by using e-services with the account number and PIN Code.

Other Concerns

What are the penalties for not closing a municipal account after moving out?
No. The account will be closed with effect from the date of registration of transfer.

How do I handle account opening or closing for sectional title or shared properties?

The rates account of a Sectional title unit is closed and opened with effect from the date of registration of transfer of the unit. Water, sewer and electricity are supplied to the Body Corporate and the Body Corporate is billed for these services. The owner of the individual unit is not billed for services and these services are not linked to his account.

May a Purchaser of a property, after transfer and before his municipal account is opened, pay for municipal services on the Seller’s account?

No. The account of the Seller will be closed with effect from the date of transfer of the property. The payments of the purchaser, made to the account after the date of registration of transfer, will not be refunded to the transferring attorney. The Purchaser may request that these payments must be transferred to his municipal account. The following documents must be submitted with the request:
1. Certified copy ID
2. Power of attorney
3. Letter from the Purchaser stating that he paid monies to the Seller’s account waiting for the opening of his municipal account.
4. Bank stamped proof of EFT.