Johannesburg’s property sales backlog has reached what role-players are describing as crisis proportions, with the
backlog in the issuing of clearance certificates for property tax in the city now up to 45 000. A Sake24 report notes
transactions worth billions cannot be processed, leaving lawyers, buyers, sellers and agents at a dead-end. Lew Geffen,
of Lew Geffen Sotheby’s International Realty, says the situation is a massive problem for the economy of Johannesburg
and that agents’ cash flow is already 40% lower than normal. Clients who sold their properties in 2009 are still awaiting
clearance certificates needed to transfer ownership. The Johannesburg Council says the backlog is due to software
problems brought about by the transition to a new system. Martin Strydom, of law firm Louw & Heyl, is quoted as saying
his firm has at least 150 property transactions that cannot be completed. ‘Law firms are under fire from buyers and
sellers, but our hands are tied.’ He says the municipality should consider the privatisation of the certificate issuing
process.
a Sake 24 report
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