Transfers & section 15B

Section 15B clearance figures and transfer recoveries

When a sectional title unit is sold, the transfer cannot be registered until the body corporate certifies that the seller’s account is settled. We check clearance figures before the certificate is issued, so arrears, interest and recoverable legal fees are collected on transfer.

What section 15B requires

Section 15B(3) of the Sectional Titles Act 95 of 1986 prevents the Registrar of Deeds from registering the transfer of a unit unless the conveyancer certifies that the body corporate has certified that all moneys due to it by the seller have been paid, or that provision satisfactory to the body corporate has been made for payment.

That certificate is the scheme’s strongest moment of leverage over an owner in arrears. Once it is issued with the wrong figure, the opportunity to recover the shortfall from the transfer is usually gone.

What we check before the certificate is issued

  • Arrear levies and special levies up to the expected date of transfer
  • Interest charged in terms of the scheme’s rules
  • Legal costs recoverable from the owner on matters already handed over
  • Other amounts due to the body corporate in respect of the unit

Homeowners’ associations

Many estates have a similar requirement in their constitution or title conditions: transfer needs the HOA’s clearance. The same discipline applies, and we check HOA clearance figures on the same basis.

Read our guide: Section 15B clearance figures: what trustees should check.

Frequently asked questions

What is a section 15B clearance certificate?

It is the body corporate’s certificate that all moneys due to it by the seller of a sectional title unit have been paid, or that satisfactory provision has been made. Without it, the transfer cannot be registered.

Can legal fees be included in the clearance figures?

Where the scheme’s rules allow legal costs to be recovered from the owner and the costs relate to amounts owed to the body corporate, they should be included in the figures before the certificate is issued.

What if the clearance certificate was issued with the wrong figure?

Recovery after transfer is much harder, because the scheme has lost the leverage of the transfer. The shortfall becomes an ordinary claim against the former owner. Checking the figures beforehand avoids this.

This page is general information, not legal advice. Contact us about your scheme’s circumstances.

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