During the August 2024 sitting, eThekwini Council deliberated accumulated debt close to R 1 billion associated with deceased estates.
It recognized the inability to service these debts, related to both unaffordability by beneficiaries and the city’s inability to contract with third parties, who are not the recognised and registered owners of these properties.
Following approval to write-off such debt in the interest of properties being issued rates clearance certificates and as such, availing same to the real estate market or affording beneficiaries opportunity to contract with the municipality from a clean slate.
The following criteria was formulated as contained in a document from City Treasury dated 16 September 2024:
1. Property value must not exceed R1 000 000 (one million rand)
2. Property must be located within the jurisdiction of the eThekwini Municipality
3. The property must be solely owned by the deceased
4. Report the late estate to the Master of the High Court
5. Applicant must be a South African citizen
6. Debt must be older than 24 months
It then extends to the documents required to assist with the application:
1. Applicant’s identity document or smart card
2. Deceased’s death certificate
3. Letter of executorship, or Letter of appointment from the Master of the High Court
4. In absence of a letter of executorship or letter of appointment, the applicant must make an affidavit from the SAPS, in support of the application
5. Proof of address and recent valid contact numbers
6. Proof of employment, or source of income, or proof of being registered as indigent
7. Assets and liabilities register from the executor, where possible.
Applications can be made at any customer service centre within the jurisdiction of the eThekwini municipality with the exception where one party owning the property is deceased, but there is still a surviving spouse or co-owner. Such applications will be exclusively attended at the Florence Mkhize building, 251 Anton Lembede street, Durban.
The decision mirrors requests that the Democratic Alliance (DA) has been requesting for years in an attempt to write off irrecoverable debt whilst affording beneficiaries a dignified life that they can actually afford. Although the ceiling is presently at R 1 million, the DA will continue in its efforts to have this threshold increased to R 1.5 million thus presenting relief to more beneficiaries who are unable to afford or defray historic debt incurred against Deceased Estates.