Joburg billing collapse halts property transfers City wide

• Billing system failure leaves 1.5 million municipal accounts unable to process payments, delaying property transfers across Johannesburg.
• Clearance figures and certificates cannot be issued, bringing sales and bond registrations to a standstill.
• Buyers and sellers face financial strain as occupation dates and transfer timelines are pushed back indefinitely.

A system under strain

Johannesburg’s property market has once again been thrown into uncertainty following another collapse of the City of Johannesburg’s (COJ) electronic billing platform, a system relied upon for issuing clearance figures and clearance certificates required for property transfers.

The City services approximately 1.5 million municipal accounts, and the system outage has left payments unallocated, billing data unavailable, and clearance documentation impossible to generate. As a result, property transfers across the metro have effectively ground to a halt.

This latest disruption follows repeated technical and governance challenges linked to the City’s SAP-based billing platform, originally introduced under the Phakama Project to unify billing, payments and customer services under a single system. Instead, implementation challenges, data integrity issues, and system instability have resulted in recurring breakdowns.

At the same time, the City faces growing service delivery pressures, including water supply challenges and infrastructure strain, adding to broader operational concerns.

Why transfers have stopped

In property transactions, a Rates Clearance Certificate is legally required before transfer can proceed. This certificate confirms that municipal charges are paid and up to date.

When the City’s billing system goes offline:

• Payments cannot be verified or allocated
• Clearance figures cannot be calculated
• Certificates cannot be issued
• Transfers cannot proceed

There is also no manual workaround, as the system is fully digital. Conveyancers, bond originators and property professionals are therefore unable to move transactions forward, even when all other conditions are satisfied.

Thousands of buyers and sellers now face delayed move-in dates, extended occupational rent payments and disrupted financial arrangements.

Hannah van Deventer, Director at Phoenix Bonds, notes that these breakdowns create real financial strain for families and investors waiting to move:

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“These transactions are extremely time-sensitive. When systems go offline, move-in dates are delayed, occupational rent continues, and financial commitments no longer align with original timelines. Unfortunately, there is no manual workaround when the City’s systems are down.”

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Billing challenges and possible solutions

‍Industry observers note that the recurring failures point to systemic challenges rather than isolated outages.

These include:

• Integration difficulties between legacy systems and newer SAP infrastructure
• Backlogs in payment allocation and account reconciliation
• Insufficient communication between municipal departments and the public
• Governance and project management concerns around system implementation

Short-term solutions largely depend on system restoration and stabilisation, while longer-term fixes require:

• Technical stabilisation and infrastructure investment
• Transparent communication from the City during outages
• Dedicated rapid-response support for clearance certificate processing
• Stronger governance and accountability on billing system management

Until these issues are resolved, property transactions remain vulnerable to future disruptions.

Industry perspective

Cor van Deventer, Director at VDM Incorporated, says the impact is being felt across the entire property value chain:

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“Property transfers across Johannesburg have effectively stopped, leaving thousands of buyers and sellers unable to progress their transactions. Clients are understandably frustrated, but these delays are entirely outside the control of conveyancers.”

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He adds: “As conveyancers, we understand how disruptive these delays are for families ready to move and financially committed to timelines that now cannot be met. What clients need to know is that their matters are not being neglected, the moment the City’s system is restored, transactions will move forward immediately.”

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The bigger picture

Johannesburg remains South Africa’s economic hub, with one of the country’s largest and most active property markets. Yet repeated administrative and infrastructure failures continue to undermine investor confidence and slow economic activity.

For now, property professionals urge patience as the system backlog grows daily, while buyers and sellers wait for municipal systems to come back online.

Until billing stability returns, one of South Africa’s most important property markets remains stuck in limbo.

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