It has been common practice for municipalities to sell vacant properties for both commercial and residential development, subject to a title deed condition that the property must be improved within a certain period or the properties would revert back to the municipality. 

The Constitutional Court in the Case of Chantelle Jordaan and others V City of Tshwane Metropolitan had to determine if Section 118(3) of the Local Government Municipal Systems Act 2000.

Until very recently new owners of properties were held liable for the historical debt of a seller due to a municipality in terms of Section 118(3) of the Municipal Systems Act.