Buying or selling a property comes with a surprisingly long list of things to remember.

There are boxes to pack, movers to arrange, keys to hand over, insurance to change, security systems to update and, somewhere in amongst all of that, a property actually transfers from one owner to another.

One important job can easily get lost in the rush:

• The City of Johannesburg municipal account handover.
• Whether the property has a conventional electricity meter or prepaid electricity, both the seller and purchaser have responsibilities once ownership changes.
• And for buyers in particular, there is another expense worth preparing for before moving day: the COJ municipal deposit required when opening a new services account.

Here is what Johannesburg property buyers and sellers need to know.

Property Transfer Doesn’t Automatically Take Care of Everything

When a Johannesburg property transfers into the purchaser’s name, the City of Johannesburg receives notification of the change of ownership through the Deeds Office.

The rates account is automatically created in the new owner’s name following registration.

The municipal services account is different.

COJ states that every customer should have their own water and electricity account. A purchaser cannot simply inherit the previous owner’s services account.

The buyer therefore needs to apply for the municipal services at the property to be placed into their name.

For the seller, the opposite applies: their services account needs to be finalised or closed.

It is best to think of registration as a handover point, rather than assuming that every piece of municipal administration happens automatically.

Before Moving: Photograph Your Meters

• This is one of the simplest things both buyers and sellers can do, and potentially one of the most useful.
• On the date of occupation or handover, take clear photographs of:
• the water meter;
• the water meter reading;
• the water meter number;
• the electricity meter;
• the electricity meter reading, where applicable; and
• the electricity meter number.
• Ideally, both buyer and seller should retain copies.
• The City specifically advises purchasers to have their water and electricity meter readings when taking ownership to help ensure a smooth changeover.
• A photograph also provides a dated visual record should there later be a query about consumption around the time ownership changed.

What Does the Seller Need to Do With Their COJ Account?

The seller’s responsibility does not necessarily end the moment transfer registers.

COJ’s own guidance says that when a property is sold, the seller needs to close their services account.

The seller should retain their final meter information and keep records of payments made around transfer.

If there is ultimately a credit balance on the old municipal account, there may also be a refund due once the account has been properly finalised.

This is particularly important because the municipal clearance process that takes place before transfer and the eventual finalisation of the seller’s account are not quite the same thing.

Don’t simply discard your COJ records once the conveyancer tells you that transfer has registered.

Keep them until you are satisfied that the old account has been properly dealt with.

What Does the Buyer Need to Do After Transfer?

• Once you have purchased a Johannesburg property, you need to apply for municipal services to be placed into your name.
• COJ directs purchasers to a Customer Service Centre to complete the Application for the Supply of Water and Electricity.

The City currently lists information and documents including:

• your South African identity document;
• banking details;
• contact details;
• next-of-kin information;
• meter numbers and readings;
• the required deposit; and
• relevant property documentation where required.
• Requirements can change, so I recommend checking the latest City of Johannesburg requirements before making the trip.

And remember: although your rates account is created automatically following registration, you should still check that the services applicable to your property are ultimately reflected correctly.

These may include:

• Rates
• Water
• Sewerage
• Refuse
• Electricity

What If the Property Has a Conventional Electricity Meter?

• With a conventional or post-paid electricity meter, establishing the reading at handover is particularly important.
• The seller needs a clear record of where their consumption ended, while the purchaser needs a starting point for their own period of ownership.
• Photograph the actual reading and the meter number.
• Don’t simply write the number on a piece of paper. A photograph gives you an additional record of the meter itself and the reading displayed on the day.
• If a billing discrepancy later arises, having that evidence could be extremely useful.

What If the Property Has Prepaid Electricity?

• This is where there can be some confusion.
• A purchaser may understandably think:
• “The electricity is prepaid. I buy tokens, so surely there is nothing to change?”
• Don’t make that assumption.
• The physical prepaid meter remains with the property, but the new owner still needs to establish their own municipal account and ensure the relevant services and property information are correctly associated with them.
• COJ is clear that customers should have their own water and electricity accounts rather than inherit an account belonging to the previous owner.
• Keep a record of the prepaid meter number at handover and, if possible, retain a recent token receipt or other record containing the meter information.
• And remember that prepaid electricity does not mean the property has no municipal account.
• There may still be rates, water, sewerage and refuse charges associated with the property.

The COJ Deposit: A Moving Cost Buyers Should Budget For

This is one of the costs I believe purchasers should know about before transfer.

When you open a new municipal services account, COJ requires a deposit.

For local residents, the City currently states that new accounts are charged a deposit based on two months’ average or deemed consumption.

Importantly, this isn’t necessarily a standard amount that is the same for every Johannesburg homeowner.

For an existing property, deemed consumption may be calculated using the previous owner’s consumption history. For a new property without that history, the township average may be used.

That means one buyer’s COJ deposit could be quite different from another’s.

The City also states that consumption on the new account is averaged over the first six months, after which the deposit can be adjusted and reflected as either a debit or credit.

Don’t Let the Deposit Catch You By Surprise

By the time transfer happens, buyers have often already paid for:

• transfer costs, bond costs where applicable, movers, insurance, security changes, repairs, curtains, appliances and all those unexpected expenses that seem to arrive with a new home.
• The COJ deposit is another cash requirement worth putting onto your moving budget.
• Rather than trying to guess an exact amount, make provision for it in advance.
• No COJ Account Yet? Don’t Assume You Don’t Owe Anything
• Another important consideration for new homeowners is that municipal billing may not immediately catch up with the property transfer.

COJ currently advises that it may take up to 10 weeks to receive and update new-owner records.

That can create a dangerous little illusion:

• No bill has arrived, therefore there is nothing to pay.
• Unfortunately, that isn’t necessarily the case.
• If your first account is delayed, continue putting money aside for rates and municipal services from the time you become responsible for the property.
• When the account eventually arrives, you don’t want several weeks’ accumulated municipal charges competing with all the other expenses of settling into your new home.

A Simple COJ Handover Checklist

For the Seller

• Before leaving the property:
• Photograph the water meter and reading.
• Photograph the electricity meter and reading if it is a conventional meter.
• Record the prepaid electricity meter number if applicable.
• Keep copies of recent municipal statements and payments.
• Finalise or close the municipal services account following transfer.
• Follow up on any credit or refund that may become due.

For the Buyer At handover:

• Photograph all applicable meters and meter numbers.
• Keep the readings taken on the date you assume responsibility for the property.
• Apply for your own COJ municipal services account.
• Have funds available for the required deposit.
• Check that all applicable services are correctly associated with your account.
• Start putting money aside for municipal charges even if the first account hasn’t arrived yet.
• Keep copies of everything you submit and obtain reference numbers for queries.

The Small Details Can Make a Big Difference

Buying or selling a home isn’t only about signing an Offer to Purchase, obtaining finance and eventually receiving the wonderful news that the property has registered.

There is a practical handover happening too.

Meter readings, municipal accounts and deposits may not be the exciting part of moving house, but getting them right can save buyers and sellers unnecessary frustration later.

I believe good property advice should help you prepare for those details too.

If you’re planning a Randburg property sale, buying your next home or simply starting to think about moving, understanding the process before you need it makes the journey that much easier.

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Please note: City of Johannesburg procedures, documentation requirements and charges can change. Always confirm the latest requirements directly with the City of Johannesburg when opening or closing an account.

• The COJ points in the article are grounded in the City’s current guidance: buyers must apply for municipal services in their own name; rates accounts are automatically created after Deeds Office registration; COJ says new-owner records can take up to 10 weeks to update; and sellers should close their services accounts.
• The City’s published deposit policy confirms the two-month average/deemed-consumption basis and that previous-owner consumption can be used for an existing property.
• Please visit the COJ Website and find their contact information at the bottom of the homepage.