Joburg Deeds Office Closure Triggers Cash Flow Woes for Property Sellers and Estate Agents

Johannesburg – The indefinite closure of Johannesburg’s Deeds Office has disrupted property transactions.

Sellers are currently unable to access their proceeds, while estate agents face delays of several months in receiving commission payments that are usually processed within weeks.

A notice issued on 25 February confirmed the Deeds Office’s indefinite closure after the Department of Labour categorized the building’s elevators as unsafe.

Consequently, employees are reluctant to climb the 26 flights of stairs, effectively bringing all property-related activities to a halt.

This disruption has created a cash flow crisis for thousands of property sellers and estate agents.

The routine registration process, which typically takes between six to twelve weeks, is now experiencing additional delays of at least two to three months.

Commenting on the situation this week, Jason Joffa from bridging finance company Lamna remarked: “The closure affects the entire sales process – everything is at a standstill, and people need their money.”

Joffa further noted, “As the Deeds Office transitions to temporary premises, sellers are left waiting for essential proceeds.”

“Lamna Financial provides a bridging lifeline for those facing extended delays in property transactions.”

Estate agents are also grappling with similar challenges. Commission payments can only be processed after property transfers are registered, resulting in significant waits for agents who have successfully completed sales.

Joffa mentioned that Lamna supports both sellers and agents in navigating this crisis.

“For agents contending with the registration backlog, Lamna can advance up to 70% of their commission,” Joffa explained.

He emphasized that the process is designed for rapid turnaround, allowing agents to approach Lamna directly or via their conveyancing attorney, who signs an undertaking, and receive payment within 24 hours.

“Estate agents incur ongoing business expenses and cannot afford to wait months for commission on completed sales,” Joffa pointed out.

“Our bridge financing assists them in maintaining cash flow while addressing the administrative backlog.”

For property sellers, Lamna offers advances of up to 80% of sale proceeds, helping to ease various financial pressures during this extended waiting period.

This support includes securing deposits for subsequent property purchases, covering emigration costs, or fulfilling other financial obligations.

Property bridging finance can speed up the sales process, especially when homeowners’ association levies remain unpaid or municipal rates clearances are pending—issues that must be settled before properties can be lodged at the Deeds Office.

“Property developers are especially affected,” Joffa remarked.

“They encounter construction costs for new units that cannot afford to wait for administrative processes to catch up.”

Sellers can access Lamna’s services directly or through their transferring attorneys.

“This is a cash-intensive industry that necessitates significant funding,” Joffa explained.

“Lamna’s growth is supported by a strong capital base, enabling us to meet the demands that arise from administrative delays creating urgent cash flow needs, and we have the capacity to act swiftly.”

While the Deeds Office sets up operations in a temporary location, Lamna expects sustained demand for bridging finance as the backlog of delayed registrations is resolved.

“We cannot control the reopening of the Deeds Office, but we can ensure that sellers and agents don’t have to pause their lives and businesses while waiting for a resolution,” Joffa stated.