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In the matter of City of Tshwane Metropolitan Municipality v Uniqon Wonings (Pty) Ltd, the Supreme Court of Appeal (SCA) held that until an erf is transferred by a township owner it does not exist as a separate entity and is thus not rateable.
The SCA held, however, that this view ignored generally accepted rating principles and the clear wording of s 118(1) of the Systems Act. The City is obliged to determine a pro rata share of the rates due in respect of the township as a whole, and for the township owner to make payment of that pro rata amount in order to comply with the requirements for obtaining a clearance certificate in connection with the property to be transferred.
Please read the article on the Practical MPRA website here.