The closure of the Johannesburg Deeds Office has triggered a wave of anxiety among sellers and real estate agents, as the disruption of new lodgements and delayed transactions is increasingly impacting the local property market.

The Deeds Office is responsible for the registration, management, and maintenance of the country's property registry.

Conveyancers also lodge various documents for the purposes of transferring properties, registering bonds in favor of banks, and many other things.

On February 25, notices were disseminated, confirming that the office would cease operations until further notice, primarily due to a decision made by the Department of Labour to shut down the lifts for safety reasons.

The staff employed at the Deeds Office have reportedly refused to climb the stairs to the 26th floor, causing a complete halt in property examinations, lodgements, and registrations.

Nadia Aucamp, the Broker/Owner of RE/MAX All Stars, voiced her concerns, stating, “The Johannesburg Deeds Office is causing quite a bit of stress for both sellers and agents. The shutdown of the lifts, which has halted new lodgements and delayed transactions in preparation for registration, is clearly having a significant impact on the property market in the area.”

Aucamp explains that the closure presents a particularly distressing dilemma for sellers whose properties remain vacant, especially those who have already moved and are awaiting the conclusion of the transfer process.

With financial strain looming, real estate professionals find themselves in a precarious position, as their commission payments are tightly linked to the successful registration of transactions.

“In cases like these, it's important to keep communication channels open with all stakeholders involved, including the Labour Department, the Deeds Office, and the relevant legal or real estate professionals. They need to explore possible solutions or timelines for resolving the situation. Unfortunately, there are limited updates or expected timelines for the resolution of this issue from the Labour Department or the Deeds Office,” Aucamp added.

The Public Servants Association (PSA) has echoed these concerns, urging the Director-General and Chief Registrar of Deeds to address the pressing health and safety issues affecting employees at the Johannesburg Deeds Office.

“Employees have repeatedly been trapped in malfunctioning elevators, despite assurances that repairs had been completed. In addition, there is no structural integrity report confirming the safety of the building’s 31 floors,” PSA stated.

“No official confirmation has been provided to assure employees that the structure remains sound.”

Amid these fears, the civil society movement We are South Africans has pointed out that real estate agents and conveyancers are now unable to lodge deeds, ownership changes, or retrieve crucial information from the Deeds Office while it remains closed.

This paralysis translates to an outright freeze on property transactions and financing approvals, which, in turn, presents a broader threat to the economy.

The movement sharply criticised the government, stating, “In essence, this is yet again negligence on behalf of the government that requires a tax increase from us as citizens but seems hell-bent on destroying business in this country and providing non-factual information to the people of South Africa that affects us all. We all need to demand that they do better than this before asking us for more money and, in fact, should start questioning any of the money we are paying in the form of any tax due to this type of service delivery failure.”

The management at the Deeds Office has been striving to provide public assistance, they have confirmed that only matters already lodged will be processed and finalized. Currently, no new lodgements will be accepted until further notice, leaving countless transactions in limbo.

The Saturday Star has sought a response from the National Department of Agriculture, Land Reform, and Rural Development regarding the ongoing issue but has yet to receive a reply.

Saturday Star

anita.nkonki@inl.co.za

landform

Broken lifts at Deeds Office raises alarms over Johannesburg property sales