Nelson Mandela Bay Municipality has opened its 2026 Debt Relief Programme, giving qualifying account holders an opportunity to repay outstanding municipal debt over a period of up to 36 months.
The programme may offer practical assistance to property owners who have fallen behind with their municipal accounts. It may be particularly relevant to homeowners considering selling, because unresolved municipal debt can complicate the process of obtaining the figures and certificates required for a property transfer.
Applications are open until 31 December 2026.
Who may apply for the debt relief programme?
According to information published by the South African Government News Agency, the programme applies to municipal accounts that were more than 30 days in arrears on 30 June 2026.
Property owners who currently have a payment arrangement, previously had an arrangement or participated in the municipality’s 2025 Debt Relief Programme may still apply. However, acceptance is subject to the municipality’s qualifying requirements and the programme’s full terms and conditions.
Qualifying municipal debt may be repaid over a period of up to 36 months.
Applicants with an existing payment arrangement must continue honouring that arrangement until the municipality approves the new application and confirms the revised terms.
How applications must be submitted
Applications must be submitted in person at one of Nelson Mandela Bay Municipality’s customer service counters.
The municipality has indicated that applications cannot be submitted telephonically or sent directly by email. Applicants will need to provide:
- A completed application form
- The applicable checklist
- All required supporting documents
Municipal staff will scan the documents for processing, while the original documents must be delivered to the relevant municipal office for auditing purposes.
Property owners should confirm the complete document requirements with the municipality before visiting a customer service centre.
Current municipal accounts must still be paid
Applying for debt relief does not suspend a property owner’s responsibility to continue paying their current municipal account.
The municipality has emphasised that applicants must keep current charges up to date while their applications are being processed. This condition also applies to customers who already have payment arrangements in place.
A “Do Not Cut” notice is expected to be placed on the account when an application is submitted. The initial protection period runs until 13 November 2026 and may be extended every two months while the municipality completes the necessary online programming.
However, extensions are conditional on the applicant continuing to pay their current municipal account.
Property owners should obtain written confirmation that the notice has been added to their account rather than assuming that submitting an application automatically protects the property from disconnection.
Why municipal debt matters when selling a property
Before a property can be transferred to a buyer, the municipality generally needs to issue the required clearance figures and municipal clearance certificate.
The conveyancing attorney normally requests these figures during the transfer process. The amount required for clearance and the way an existing debt arrangement will be treated can depend on the account and the applicable legal and municipal requirements.
A repayment arrangement should therefore not be assumed to remove every potential obstacle to a transfer.
If a property owner is considering selling in Gqeberha (Port Elizabeth), it is advisable to disclose outstanding municipal debt to the appointed property practitioner and conveyancing attorney at an early stage. This allows the parties to establish:
- The current balance on the municipal account
- Whether the debt qualifies for the relief programme
- What amount may be required to obtain municipal clearance
- Whether the repayment arrangement can continue after the property is sold
- How any outstanding amount could affect the seller’s proceeds
- Whether the debt could delay the anticipated transfer date
Obtaining this information before accepting an offer can reduce the risk of an unexpected problem later in the transaction. For a broader overview of the steps involved, read our guide to the property transfer process in South Africa
Should a homeowner apply before selling?
The answer will depend on the homeowner’s financial position, the amount owed and how soon the property may be sold.
A debt relief arrangement could provide a more manageable repayment structure, but sellers should first establish how the municipality will treat the arrangement when transfer figures are requested.
Where possible, sellers should speak to the municipality and a conveyancing attorney before committing to a particular course of action. LEAP Real Estate can help a seller identify the questions that should be raised during the early preparation of the property for the market, but legal and municipal advice must come from the appropriate professionals.
What property owners should do now
Property owners who may qualify should not wait until the December deadline to investigate their options. Applications still need to be assessed, and the municipality has indicated that parts of the online processing system are not yet finalised.
A practical first step is to obtain an up-to-date municipal statement, gather the required supporting documents and visit a municipal customer service counter to confirm eligibility.
Homeowners planning to sell should also request an early assessment of how the debt could affect the anticipated transfer. Municipal debt is generally easier to manage when it is identified before the property is listed or an offer is accepted.
Planning to sell property in Gqeberha?
If you are considering selling your home in Gqeberha (Port Elizabeth), understanding your municipal account is an important part of preparing for the transaction.
LEAP Real Estate can guide you through the property selling process, help you identify potential delays and work alongside the appointed conveyancing attorney to keep the transaction moving as smoothly as possible.
Contact LEAP Real Estate to arrange a free comparative market analysis (CMA) and discuss your next move.
Information in this article is based on the programme details available at the time of publication. Eligibility, repayment terms and the treatment of outstanding debt during a property transfer should be confirmed directly with Nelson Mandela Bay Municipality and the appointed conveyancing attorney.
