The property market in Johannesburg is shackled because of constant billing problems in the city's revenue services.
Some property investors are so frustrated that they're desperate to offload valuable properties.
Johannesburg lawyers claim that in every single property transaction there are problems.
Property investors and estate agents claim they lose fortunes because of the shambles in the billing system.
They claim getting a correct clearance certificate takes months, jeopardising a sale.
Other problems include: irregular charges being levied; new owners not being able to get an account, and then being cut off for "non-payment"; and bills arriving years after properties have been sold.
Moira Wingate-Pearse, of Interciti Real Estate, says the billing chaos is having a serious impact on the market.
A factory complex she manages had its water and electricity cut off for four days, bringing business to a halt, because of an incorrect cutoff.
That is just one example of the many problems she experiences. "I battle for days to get an account rectified, but no one seems able to solve problems."
Financial consultant Magnus Heystek, who owns several properties, says he is fed up and is busy selling them all.
"I can't take it anymore. Many investors won't invest in property because of the frustrations of dealing with the billing department," he says.
Heystek recently tried to obtain a clearance certificate on a property he sold in Dainfern.
He was up to date with payments, but got a clearance certificate bill for R7 777,90. There was a delay in transfer and he reapplied for another certificate a month later. This time he received a bill for R175 035,07, with a note saying "No electricity billing from 2000".
The council admitted the readings were incorrect and said the meter, in fact, belonged to a neighbour.
Heystek has still not been able to sort out the mess.
"I am in danger of losing the transaction, with a concomitant loss of several hundred thousand rands. Should it be proved that the council has been negligent, I will take action to recover any losses," Heystek vows.
Conveyancing attorney K J Lanser says every sale he handles results in problems.
"The situation is costing millions of rands in wasted time, costs and losses," he says.
According to City of Johannesburg spokesperson Virgil James, there is no desire to drive away investors.
"Our intention is to issue clearance certificates in a minimum possible time, but we acknowledge that because of human factors, things do go awry. We're working on the problem."
Publisher: The Star
Source: Anna Cox
Billing chaos puts property market at risk
Posted On Tuesday, 10 June 2003 02:00 Published by eProperty News
The property market in Johannesburg is shackled because of constant billing problems in the city's revenue services.
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