Joburg transfer nightmare: Water is a problem too

PRETORIA - Residents of a sectional title complex in Linden have been struggling for more than two years to have their water accounts transferred into the name of the complex's body corporate. Realestateweb has discovered that this is not an isolated case. It seems to be a prolific problem throughout the Johannesburg area.

A Johannesburg developer, who didn't want to be named, confirmed that he was still receiving up to a hundred water accounts for properties his company has developed since 2003. He has given up on rectifying matters with Johannesburg Water and the City Council, and now opts to file the accounts without paying them. When he receives subpoenas for the outstanding debt he hires legal help and defends his position in court. Only then does the council seem to affect the account transfers required.

For residents of Mahem in Linden the situation is causing sleepless nights. They have been occupying the complex since late 2007 and they've never received a water account. The account for the property is still in the name of the developer and they are dreading the day that the council finally sends them a bill.

"This amount is going to be astronomical, and it will probably include interest even though the arrears were not our fault," says one resident who has been engaging with Johannesburg Water and the City Council to sort the matter out. "The people I have spoken with don't seem to know how to resolve this particular case. The property used to be a single stand with a single dwelling on it. When it was developed it was subdivided into four smaller stands."

What needs to happen is for the City to issue a joint account for four residences instead of one. Recognising the division is important because the City allows for a quota of free water usage per residence every month. Currently the account supplied to the developer only recognises one residence on the property and therefore only allows for a single free usage quota. 

Our resident says paying the account on behalf of the developer isn't an option either. "We are concerned that if we pay the accounts being sent to the developer, the council will eventually realise that there was a transfer of ownership and bill us again."

When Realestateweb approached the City Council we were told that the transfer of water accounts from property developers to new property owners was the responsibility of Johannesburg Water. We contacted Johannesburg Water, and were asked to provide details of our query, but we haven't yet received an answer as to how the process is supposed to work.

Mahem residents are also concerned about what would happen when they tried to sell their properties. They are fully aware that the water arrears may cause the municipality to withhold clearance certificates until the outstanding amounts are paid, but they don't know when the City will finally update their paperwork.

Account issues like these don't only have implications for property owners, but they also amount to a significant loss in revenue for the City Council. It is more than likely that a court would be sympathetic to both property developers and property owners in such cases. This means that the Council would probably have to write off arrears which in some cases, as we have discovered, date back up to seven years.

Get commercial property news by email

Free alerts when we publish — pick a focus or get everything, unsubscribe in one click. Subscribe »