IN A victory for municipalities, the Constitutional Court yesterday set aside the Port Elizabeth High Court's decision declaring legislation governing property transfers unconstitutional.

This ruling means that municipalities will still demand settlement of outstanding rates and services fees before a property can be transferred to the new buyer.

A group of property owners and landlords brought applications to the Constitutional Court saying provisions of section 188(1) of the Local Government Municipal Systems Act of 2000 were inconsistent with the right to housing as contained in the constitution.

Judge Zak Yacoob, for the majority, said the judgment held that the owner of the property was obliged to ensure that certain consumption charges owing to the municipality in connection with a property were paid before that property could be validly transferred.

Yacoob said the municipality also had a duty to send out regular accounts, develop a culture of payment and disconnect the supply of electricity and water in certain circumstances.

Provincial and Local Government Minister Sydney Mufamadi welcomed the judgment and said it created certainty throughout the country as the department was faced with a proliferation of cases challenging the constitutionality of this section.

"There are also other cases throughout the country that are being held in abeyance pending the decision of the Constitutional Court," Mufamadi said. "The judgment brings clarity and closure to the issue so that municipalities can continue with their constitutional mandate of delivering services and improving people's lives."