VALUER THE SOUTH AFRICAN - PRACTICAL WORKSCHOOLS 2013 IPTI SYMPOSIUM FEEDBACK NORTHERN BRANCH COUNTRY SEMINAR KZN-COGTA EXPERIENCE
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THE SOUTH AFRICAN
OCTOBER 2013, NO. 114
VALUER
Practical Workschools 2013
IPTI Symposium feedback
Northern Branch Country Seminar
KZN-CoGTA experience
> Corporate and Investment Banking
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PRESIDENT ’S
THE SOUTH AFRICAN LET TER
INSTITUTE OF VALUERS
NATIONAL EXECUTIVE
OFFICE BEARERS 2013/2014 Sanibonani Nonke
PRESIDENT The end of the year is rushing towards us. I am sure
Trevor Richardson
VICE PRESIDENT
you are already planning to close out your live projects
Mark Bakker so that you can spend some time with your family over
LEGAL & CONSTITUTION the December holidays. I like to escape from the city
Mark Bakker (portfolio head),
Roshinee Naidoo, André Zybrands and spend some time in the bush; this got me thinking
MANAGEMENT & FINANCE about rivers and water as a life source.
Trevor Richardson (portfolio head), Trevor Richardson
Mark Bakker, Jenny Falck, Kit Carson, Elma la Grange
MARKETING The SAIV has a river running through it – that is you, our
Jenny Falck (portfolio head) members. You are the ‘life source’ of the Institute and our profession. Our members are
Kit Carson, Mark Bakker, Roshinee Naidoo,
vital to us, and so too are our new members. We would like to welcome those who have
Elma la Grange
PROFESSIONAL LIAISON joined us this quarter. We are proud of our heritage and trust you are equally proud to be
Kit Carson (portfolio head) (AfRES, REIB) part of ‘our family’.
Melanie Vallum (SACPVP, IVSC), Tracey Myers (CBE),
Trevor Richardson (VAs), Jenny Falck (RICS),
Roshinee Naidoo (IAAO), Patrick O’Connell (WAVO), A river that constantly flows is a healthy river. Stagnant water has little to offer. I urge you all
André Zybrands (SARWA) to get involved in the Institute’s affairs, in whatever form is appropriate for you. Workshops
MEMBERSHIP & TRANSFORMATION
Farrel October (portfolio head), and seminars are as much a time for rejuvenation and reconnecting with one another, as
Patrick O’Connell, Louis Taderera, Roshinee Naidoo they are a requirement for CET hours.
EDUCATION
Tracey Myers (portfolio head),
Allison Stober, Kgoshi Sasa To our members who are retiring, please don’t stagnate but stay engaged in the profession.
The skills and knowledge you have attained over your working years are a valuable resource
GENERAL SECRETARY
and I urge you to find ways of sharing your knowledge with us. We have many student
t: 012 348 2757
f: 086 657 3164 members who are desperate to gain knowledge and be mentored.
e: gen@saiv.org.za
www.saiv.org.za
Accounting queries: accounts@saiv.org.za
As a body we want to go from strength to strength. The stronger we flow the wider our
influence.
BRANCHES
Southern
PO Box 18041, Wynberg 7824 Salanikahle n
t: 021 762 3313 f: 086 730 9193
e: south@saiv.org.za
Trevor Richardson
13 Piers Road, Wynberg
Eastern Cape
PO Box 34758, Newton Park 6055
t: 041 396 1400 f: 086 657 3003
e: east@saiv.org.za
85 Cape Road, Mill Park, Port Elizabeth
Central
PO Box 300, Bloemfontein 9300
t: 051 448 9431 f: 086 657 3023 As this is the last issue of The South African
e: central@saiv.org.za
22 Elizabeth Road, Bloemfontein
Valuer of 2013, the editorial panel and the editor
Northern
PO Box 35500, Menlo Park 0102
would like to wish all members of the Institute
t: 012 348 1752 f: 086 657 3201 a happy holiday season and a healthy and
e: north@saiv.org.za
Unit 11, Rynlal Building, 320 The Hillside Street, prosperous 2014.
Lynnwood, Pretoria
KwaZulu‑Natal
PO Box 2051, Westville 3630
t: 031 208 5633 f: 086 657 3031
e: kwzn@saiv.org.za
Cope Road, Morningside, Durban
THE SOUTH AFRICAN
VALUER 1
OCTOBER 2013, NO 114
CONTENTS
SA Valuer Editorial Panel:
Kit Carson (Central Branch)
051 448 9431 / 082 821 1214
Mark Bakker (Eastern Cape Branch)
041 396 1400 / 083 227 3496
October 2013, no. 114 Roshinee Naidoo
(KwaZulul‑Natal Branch)
031 464 9317 / 082 826 3969
Elma la Grange (Northern Branch)
012 460 8341 / 083 372 0365
Karen van der Vyver
1 President’s letter (Southern Branch)
021 976 9327 / 082 453 3840
4 Cover story: Practical Workschools 2013
Editor and advertising:
Patricia Leitich
7 The IPTI Mass Appraisal/Valuation Symposium, by Greg Cowden patricialeitich@gmail.com
Design, printers and mailing
10 Property buyers be aware of historical debt house:
Law Print
11 Northern Branch Country Seminar 2013: The editorial panel welcomes contri‑
Planning the Ekurhuleni Aerotropolis butions (by way of letters or articles)
that are appropriate and that ad‑
Tambo Springs dress an issue that is topical or of
Alternative Building Technology (ABT) strategic concern to the sector as a
Spatial and Land Use Management Act whole. These should be submitted
to the editor at patricialeitich@gmail.
Rezonings, subdivisions and consolidations com for possible publication. Please,
Introducing RICS use the SA Valuer as your platform
Supplementary valuations: What you should know to promote dialogue between SAIV
Water Rights ‑ Legal aspects that may influence property valuers members.
Sectional Title Amendment Bill The information and data presented
Sustainable Agriculture in the SA Valuer are recorded in
good faith, using sources believed
to be reliable.
21 KZN‑CoGTA experience, by Greg Cowden, Roshinee Naidoo and
Michael van der Meulen The views and opinions expressed
in the SA Valuer are not necessarily
those of the SAIV, notwithstanding
28 Appraisal Institute news the fact the SA Valuer is the official
publication of the SAIV. Neither are
29 SAPOA comments: they representative of the opinions of
Building plan approval delays cause concern the publisher or the editor. Copyright
applies to all material contained in
SA land ownership cannot continue to be left unaddressed this issue and reproduction in what‑
Draft Tshwane Town planning Scheme 2008 (Revised 2013) ever form is not permitted without
the written authorisation of the editor.
30 Capital gains tax revisited
31 Game farming plays an increasing role in South Africa’s
farming sector
33 Stretched to the limit
34 SAIV at home:
From the GS's office
The SAIV acknowledges sponsors of students who attended
the 2013 Practical Workschools
Spotlight on Sam Sikhitha
Upcoming events
SAIV membership statistics
38 Professional Directory
THE SOUTH AFRICAN
2 VALUER
OCTOBER 2013, NO 114
PROUD SUBSIDIARY OF EPS
THE SOUTH AFRICAN
2745_JHI_ADD_S.A Valuer_TF_September_2013_PRINT.indd 1
VALUER 3
2013/08/20 9:34 AM
OCTOBER 2013, NO 114
P RAC T I CA L WO RKS C H O O L S
2013
The SAIV once again presented successful John van der Spuy, professional valuer in private practice
workschools in Gauteng and Cape Town in 2013 on Debbie Wall‑Smith, professional valuer in private practice and
behalf of the SACPVP. The Cape Town Workschool commercial broker
attracted 36 students and the Gauteng Workschool Dean Ward, professional valuer, City of Cape Town
88 students. We are grateful to our facilitators and Emil Weichardt, professional valuer, City of Cape Town
other branch executive members who assisted with all Andre Zybrands, professional valuer in private practice.
the arrangements. We also believe that the students
enjoyed themselves amidst all the studying. Demographics
Of the 124 students who attended the workschools,
Our lecturers were of outstanding quality and our sincere representation by province was as follows:
appreciation goes to them for sharing their knowledge with our
next generation of valuers. They are: Province Number of Percentage Attended Attended
students per Cape Gauteng
province Town
Dirk Coetzee, professional valuer in private practice Mpumalanga 4 3.23 0 4
Laurie Colussi, professional quantity surveyor
Limpopo 1 0.81 0 1
Dr Llewelyn Curlewis, partner at Pieterse and Curlewis Inc,
Northwest 7 5.65 0 7
Pretoria
Gauteng 54 43.55 2 52
Saul Du Toit, professional valuer in private practice
Ben Espach, professional valuer in private practice KwaZulu‑Natal 16 12.90 1 15
Jenny Falck, professional valuer in private practice Free State 3 2.42 1 2
Tony Gebhardt from Hamlyn Gebhardt & Associates Northern Cape 0 0.00 0 0
Mike Gibbons, professional valuer in private practice Eastern Cape 9 7.26 2 7
Dr Antonie Gildenhuys, retired Judge of the Land Claims Court Western Cape 30 24.19 30 0
Stanley Hermans, professional associated valuer in private
124 100.00 36 88
practice (former municipal building inspector)
Sidney Holden, professional associated valuer and town planner
Assessment
Prof Willem Landman, executive director, Ethics Institute of
Student assessment took the form of a multiple choice test at
South Africa (EthicsSA)
the end of the workschools. Test results, as in the past, were
Jerry Margolius, professional valuer in private practice
emailed to students together with a breakdown of their results
Tim Moulder, professional valuer in private practice
per test area. We believe that this breakdown will assist students
George Nel, professional valuer in private practice
to be aware of the areas where their knowledge needs to be
Pine Pienaar, agri specialist, valuer in private practice
broadened.
Werner Sarvari, professional valuer in private practice
Matsobane Seota, Registrar SACPVP
The SACPVP did not require students to write a test in 2012;
Timothy Smith, professional associated valuer in private practice
attendance at the workschool alone was required. The SAIV,
Mark Souris, managing director, Periscopic Property
however, did require students to write a test after which they
Management
received an attendance certificate that permitted them to write
Leon Stander, valuer in private practice
the SACPVP’s Board Examination. The SAIV was pleased to
Louis Taderera, City of Johannesburg: deputy director:
note that for the 2013 Workschools, the SACPVP required an
Directorate Valuation Services
assessment. The result of each student’s individual assessment
Adrian Vallun, professional valuer in private practice
counts 10% towards the Board Examination.
THE SOUTH AFRICAN
4 VALUER
OCTOBER 2013, NO 114
Results Dina Rademeyer from Durbanville and Christiaan Winckler from
Students achieved results of between 27% and 88%. It is Ermelo ‑ 88%
unfortunate that 37 (30%) of the students did not achieve the Edwin Bath from Hilton and Dylan Haward from Benoni ‑ 85%
pass mark of 50%. Rowan Collins from Johannesburg and Angelo Jephtha from
Cape Town ‑ 83%
Percentage Percentage of Percentage of Pieter Britz from Potchefstroom ‑ 82%
obtained students 2012 students 2013 Grant Gibson from Durban, Gerhard Kotze from Pretoria and
27% to 34% 0.67% 4.84% Yongama Mabece from Johannesburg ‑ 80%
35% to 39% 2.67% 3.23%
The following students should also be commended on their
40% to 44% 3.33% 4.84%
outstanding results:
45% to 49% 13.33% 16.94%
50% to 59% 30.00% 30.65% Rj Britz from Potchefstroom and Mike Spaans from Cape Town
60% to 69% 31.33% 17.74% ‑ 78%
70% to 79% 13.33% 13.71% Andre Conradie from Uitenhage, Summen Naidoo from Durban
80% to 88% 5.33% 8.06% and Daniel Strydom from Port Elizabeth ‑ 77%, and Coenraad
Botha from Moorreesburg Cape ‑ 75%.
Top achievers
The top ten students all achieved results of 80% and above and
are to be congratulated on this achievement and their hard work.
They are:
The practical workschools also have an important social component
THE SOUTH AFRICAN
VALUER 5
OCTOBER 2013, NO 114
INTERACTION
The Registrar explaining
Dr Llewelyn Curlewis ‑ Mock Court ‑ a must to listen to
Acknowledgements from students
I really enjoyed the Workschool and learnt a lot from all the
specialist presenters. I would like to compliment you and
your team on the smooth running and organised flow of the
event. The speakers were all of excellent quality and their
notes will surely help me to become a professional valuer
in time to come. I am also very relieved about passing the
Students at the Gauteng Workschool exam. ‑ Gerhard Kotze
I would like to thank you as well as the Institute (SAIV) for
a well‑organised and enriching Workschool programme.
I did learn a lot and had fun thanks to you!! I would like
to thank the Institute (SAIV) for linking me up with Mr Niel
de Klerk who sponsored my Workschool accommodation.
I just want to say thanks ‑ the assistance was highly
appreciated. May the Institute continue its tireless work in
supporting and nurturing the property valuation profession.
‑ Alex Mooya
I personally enjoyed the Workschool, thank you again.
SAIV is the best. I am proud of it.
SAIV ROCKS!! ‑ Nnete Mike Tau
THE SOUTH AFRICAN
6 VALUER
OCTOBER 2013, NO 114
T he I P T I M ass A ppraisal /
Valuation S y mposium
The International Property Tax Institute (IPTI) held its taken early on was that because the symposium focus was on
8th Mass Appraisal / Valuation Symposium (MAVS) mass valuations, and that municipalities and the government
co‑hosted by the African Tax Institute (ATI), the sector were involved alongside the valuer profession, they
Department of Cooperative Governance and Traditional would need to be included to support capacity building in
Affairs (CoGTA) and the South African Institute of mass valuations. In this regard KwaZulu‑Natal‑CoGTA gave its
Valuers (SAIV) in Durban on 13 and 14 June 2013. full commitment and support, financially and in its co‑hosting
The symposium was a most successful event with a and partnering with the ATI and SAIV, in ensuring a successful
good turnout; the international and local professional event. There was a strong representation by financial divisions
presenters were well received. of municipalities in KZN ‑ a clear indication of their intention to
promote capacity building and strengthening of their property
The International Property Tax Institute (IPTI) rating knowledge.
What IPTI stands for and its mission
IPTI advocates the global promotion of effective and efficient The symposium theme was Mass Appraisal Valuation and
property tax policy and practice. With a strong commitment Property Taxation: Challenges and Opportunities in the
to facilitating the provision and exchange of key information Developing World, with a strong link to mass valuation standards
and sharing best practice, IPTI is focused on developing the in both the expression of the critical need for such standards and
most comprehensive knowledge base concerning property the development/implementation of mass valuation standards
tax including policy, legislation, administration, communication, for South Africa.
education, valuation, taxation, collection and enforcement.
The symposium was officially opened by the president of IPTI,
IPTI’s mission is to provide impartial, objective expert advice in Paul Sanderson, and supported by the president of the African
the area of property tax systems and promote the concept that Tax Institute (ATI), Professor Riel Franzsen, and the president of
these systems should be fair and equitable and meet the needs the South African Institute of Valuers, Trevor Richardson.
of all stakeholders, ie governments, taxpayers, practitioners
and academics. IPTI seeks to ensure that property tax systems The Honourable MEC N Dube (KZN‑CoGTA) delivered the
contribute to the provision of high quality services for the benefit keynote address, which echoed the theme addressing quality
of communities. of valuation rolls and the support of mass valuation standards to
improve the profession. She stressed that accurately conducted
IPTI 8th MAVS, Durban property valuations will go a long way towards forging cohesion
South Africa, through its professional valuer bodies and between the ratepayer and local government. She said: “As
associations such as the SAIV and the African Tax Institute (ATI), the MEC responsible for MPRA implementation, I would like
has maintained associations with the international property to challenge the profession to improve and adopt professional
valuation community and IPTI is one such organisation that has mass valuation standards and from these standards continuously
reciprocated over the years in maintaining strong ties through its develop and improve educational programmes to improve skills
symposiums. The last time an IPTI symposium was held in SA in the valuation profession, especially within municipalities. The
was in 2009. non‑existence of valuation standards remains a huge challenge
in our country. The lack of valuation standards will continue
The valuer profession and South Africa were fortunate in to cause poor quality and performance of valuation rolls and
securing the support of the International Property Tax Institute to values.”
host their 8th Symposium in South Africa. A bonus was that they
chose Durban as the venue and the weather did not disappoint. Some of the main presentations
1. Valuation Standards
The symposium hosted some 25 presenters; 180 delegates International valuation standards for the property tax
attended the two‑day event with a mix of international and local professionals ‑ Practical implementation in developed and
delegates from 13 countries participating. One of the decisions developing countries. Paul Sanderson provided insight
THE SOUTH AFRICAN
VALUER 7
OCTOBER 2013, NO 114
into the practicalities of standards, referencing various • Review and expand the definition of agricultural property
international standards that are in place. to include game farming, excluding those portions of game
farms used for guest hospitality.
2. Status of mass valuation standards (MVS) in South Africa: • Review the definition of mining property and the treatment of
2013 and beyond mining licences /permits.
Greg Cowden (KZN‑CoGTA) and Trevor Richardson • Appeal board member should allow ’valuer’ to be a
(president of the SAIV) outlined the status of MVS locally and professional valuer or a professional associated valuer
internationally. The presentation highlighted the following without restrictions with a minimum of ten years’ experience.
benefits of MVS: • Supplementary valuations should be processed in real time
• Improved professionalism by the commitment from the on a daily basis and notification sent to the owner of the
valuers profession in the delivery of general valuations, change who will be afforded the opportunity to object under
valuation rolls and supplementary valuations the usual section 49 process.
• Improved quality of the property register and GIS cadastral
(land audits) and maintenance to support the delivery of This topic was expanded on by Ben Espach of Rates Watch
credible valuation rolls and included some of the common issues experienced when
• Improved quality of data collection, data capture and data undertaking general valuations such as:
management
• Improved quality of sales analysis and sales validation to Service providers ‑ late appointments; not qualified; over
support the valuation process committed
• Improved quality of valuations to support valuation rolls and Data ‑ No standards; not up to date; not available
the rating of property Management ‑ lack of resources; valuation roll is a tool to
• Improved efficiency in maintaining valuation rolls, including collect income and quality often regarded as unimportant;
the production of supplementary valuation rolls knowledge constraints.
• Improved data management and access to data/information
to support analysis for the monitoring of quality and The proposed MPRA changes will enhance monitoring,
performance including ensuring that a valuation roll complies with sections
• Improved communication between the municipality and the 30 and 48 of the MPRA; the municipal manager will be
owners/ratepayer which includes the objection and appeal required to submit a project plan to the GV for implementation
process with the following milestones –
• Improved synchronisation of the valuation roll to the financial • Date of valuation
system resulting in improved rates collection management. • Advertised tender
MVS applicable to South Africa is an area that KZN‑CoGTA is • Designate municipal valuer
keen to support, facilitate and promote. • Project plan submitted by municipal manager
• Submission of certified roll.
3. MPRA update ‑ MPRA proposed changes to legislation
Veronica Mafoko (Department of Cooperative Governance) 4. The Property Valuation Bill and office of the Valuer
said that the changes had not yet been enacted but they General (OVG) – bill published for comment. Department
did provide focus and direction to the legislative changes of Rural Development and Land Reform represented by
planned by the Department. The MPRA amendments had Thopelo Motsoeneng and supported by Andre Zybrands
been approved by cabinet in April 2013 and were before and Willy Govender
Parliament awaiting approval and promulgation. Proposed legislation presented was opportune as the bill
closed for comment during the week of the symposium. It
The main MPRA changes proposed: has raised some comments from the public and the valuer
• Exclude roads, railways, airport aprons and runways, dams profession as it relates to the valuation of property mainly
and breakwaters from rating in the national interest ‑ the for acquisition purposes and the resultant determination of
exclusions to be phased out over three years. compensation.
• Review of the categories of property and the restriction of the
initial number in the Act, at the same time providing flexibility Various presenters from the Department of Rural Development
to allow municipalities to decide on categories in addition to and Land Reform represented by Thopelo Motsoeneng
those specified. outlined the establishment of an office to control and perform
• Allow for the period of validity of a municipal valuation roll to valuations on behalf of the state, and the opportunity to create
be extended from four to five years and for the MEC to extend a national database of property information. It was noted that,
it by a further two years, based on valid reasons, particularly based on the interpretation of the new legislation as it stands
where there is provincial intervention in a municipality. at present, there may be physical and practical constraints
THE SOUTH AFRICAN
8 VALUER
OCTOBER 2013, NO 114to its implementation. The meeting was informed that the In China the move to increase financial independence of
legislation appears to be extremely resource intensive. local government through property tax was driven by the
desire to modernise tax systems and redefine institutions to
It was pointed out that a new definition of ’value’ is included: market transition; provide sufficient stable revenues for local
“the value of the property identified for purposes of land government; redefine intergovernmental relations; and as an
reform or expropriation, which must reflect an equitable instrument for value capturing.
balance between the public interest and the interests of those
affected by the acquisition.” It was asked which value would He noted that decentralisation was preferred as it increased
be applicable in disputes over settlement and compensation fiscal efficiency and said that local taxation is the best
which go to court, ‘market value’ based on willing buyer/ because:
willing seller principle or the new definition of ’value’. Any • it is an independent, autonomous revenue source that allows
new definition of ’value’ needs to be considered in the light local governments the flexibility to meet local needs and
of potential disputes and its interpretation. There was also wants;
concern that valuers employed by municipalities might be at • revenue sticks where it lands;
risk if the Act were promulgated in its current form. • local government responds to local citizens;
• local governments can provide services and goods that are
Mr Thopelo Motsoeneng from the Department of Rural demanded by local citizens;
Development and Land Reform provided acceptable • citizens are more inclined to participate in public discussions;
explanations to the questions and advised that comments • decentralisation will increase as local tax increases as
about the bill would be considered by the Department. the dominant source of income.
5. CAMA and rating – Lessons learned, presented by Peet Property tax on the market value of property is the best basis
du Plessis of the Ethekwini Municipality Revenue Division for local taxation because:
Peet provided practical steps to consider for roll analysis – • the market value of property is frequently associated with the
level of services provided by local government;
Use various statistical techniques with tolerance of 10% • property is immobile and cannot be moved to another
error; compare increase in property value with the growth in jurisdiction in order to avoid tax;
sales as reported by commercial banks for an area; compare • property as a tax base cannot be hidden by owners or
property values with average value according to the size for a occupants in order to avoid tax;
specific area/suburb. • property is an adequate and stable source of revenue;
• property tax provides ease of compliance as the cost of
Various graphs were presented which illustrated the analysis compliance is born by the local tax administrators rather than
and tools available when comparing new roll values to old the tax payers;
roll values in the identification of anomalies which need to be • property tax captures the value of public investment as the
investigated. public investment adds value to private and public land and
this increment can be captured in the property tax;
6. MPRA Implementation ‑ Lessons learnt, presented by the • the tax finances specific infrastructure paid by people who
City of Cape Town (Emil Weichardt), City Of Joburg (Piet benefit from the investment directly and indirectly;
Eloff) and Ethekwini Municipality (Keith Matthias). • it is transparent.
Practical issues on data collection and quality monitoring
were discussed and the importance of general valuation Some disadvantages of local property tax were noted and
progress management through financial management and need to be addressed constantly by local property tax
delivery target control was highlighted. Payments should administrators:
only be approved once delivery of the service and milestones • exemptions often erode the base;
have been confirmed. • land and building problem – if buildings are taxed should there
There must always be a well planned and co‑ordinated be a penalty on investing in buildings, including improving or
communication programme to support a general valuation, maintaining existing buildings?;
in particular the data collection phase and when rolls are • visible tax with annual payments;
published. • tax on non‑realised gains in value;
• requires good land and building records;
7. Chengri Ding, NCGS presented a paper entitled ‘Why • often there is limited real estate market activity;
should China levy property tax?’ • often there is limited information on market transactions.
Mr Ding noted that local government in China was typically
funded through tax, fees and pricing, loans and transfers.
THE SOUTH AFRICAN
VALUER 9
OCTOBER 2013, NO 114Conclusion confidence and credibility in the valuations it produces for the
The interest shown in the IPTI Mass Valuation Symposium was public.
most encouraging and indicated that the valuation profession,
financial managers within municipalities and CoGTA supporting For the presentations that were made available by speakers visit
an oversight role, are taking the MPRA and its implementation http://www.kzncogta.gov.za/Documents/IPTIConference.aspx
seriously. The enthusiastic participation of delegates, the
top quality international and local presenters sharing their The full MEC KZN‑CoGTA speech is available at
experiences and practical knowledge made the two days a http://www.kzncogta.gov.za/Newsroom/LatestEvents/2013/
positive experience. MassValuationSymposiumisexpectedtobenefitlo.aspx n
Partnerships forged during the planning stages and during the Greg Cowden
IPTI Symposium itself should continue into the future to ensure
the development of practical capacity building and skills transfer
opportunities.
The support and interest shown by the MEC KZN‑CoGTA in
co‑hosting the international symposium will assist in enhancing
confidence in the valuation profession as it strives for increased
Property buyers be aware of historical debt
Bowman Gilfillan Litigation Newsflash The SCA held further that if there are additional charges due
over and above those that arose during the two‑year period, the
The Supreme Court of Appeal recently held, in City of Tshwane municipality is not entitled to withhold the clearance certificate.
Metropolitan Municipality v Thomas Mathabathe and Nedbank The remedy available to the municipality in respect of these
Limited, in relation to a section 118(1) clearance certificate charges is that it exercises a lien in respect of the property for
issued in terms of the Municipal Systems Act 32 of 2000, that an unlimited duration. It was confirmed that if these charges
all amounts due for unpaid municipal debts are secured by the are not paid and an appropriate court order is obtained, the
property. property may be sold in execution and the proceeds applied to
the unpaid debts.
The SCA held that all amounts owing to the municipal authorities
that have not prescribed, are secured by a lien on the property A purchaser of a property will be well advised to ensure that
and this lien is not lost when the property is transferred. The once a rates clearance certificate is issued, there are no
SCA confirmed that if municipal charges for the two‑year period additional amounts owing to the municipality. In circumstances
preceding an application for a clearance certificate are paid, the where there are outstanding charges owed to the municipality,
municipality is obliged to issue a clearance certificate. a purchaser should obtain sufficient collateral from the seller in
order to limit its exposure. n
THE SOUTH AFRICAN
10 VALUER
OCTOBER 2013, NO 114N orthern B ranch
C ountr y S eminar 2 0 1 3
Chuck Norris? or Lynne Brookshaw
and Motlatso Maloka at the
registration table?
Could it be André Zybrands undressing? the Valuer General
himself? or perhaps our branch executive members….they are
SUPER men and women – really super.
“…the BEST ever…” “…first seminar where I enjoyed
listening to each and every topic…” “… awesome
It is none of the above – the answer is:
coffee…” “…why is André taking off his clothes…” “…
IT IS US – EVERY ONE IN THE VALUER PROFESSION!
it was fun…”, were but a few of the comments made
by delegates to our country seminar.
On a more serious note…
Who is Superman?
The following message was reiterated throughout the seminar,
The morning began with much anticipation around the big
and the presentations delivered will definitely encourage us to
question ‘who is Superman?’. The coffee stand with two
provide professional and ethical services of a high standard:
hands‑on barmen and the ‘awesome coffee’ gave everyone the
necessary kickstart to enjoy two interesting, informative and
Whilst being bombarded by politics, personal economic
fun‑filled days.
constraints and bribery, it may be difficult, but it is still expected
of valuers to conjure up the impossible and estimate unbiased,
Friday night’s braai was a huge success with great food and
uninfluenced, objective and market‑related values.
even better company. As we all know, valuers cannot resist
discussing valuations even with a drink in hand. Luckily the
We should all
spouses provided the necessary distraction and for the rest of
the evening everyone danced the night away.
• stand for truth and justice
• not be influenced by politics
The long‑awaited answer to the question “who is Superman?”
• have unwavering moral codes
was only given on Saturday morning and proved to be not as
• be committed to operate within the law.
simple as many had thought.
We must stand strong in our interpretation of verifiable facts
Could it possibly be…
alone.
Homer Simpson?
Look out for coverage of all the presentations in this and the next
issue of The SA Valuer. DVDs of the entire seminar are available
from Lynne Brookshaw at the Northern Branch offices. Contact
her at north@saiv.org.za n
THE SOUTH AFRICAN
VALUER 11
OCTOBER 2013, NO 114P lannin g the E kurhuleni A erotropolis
b y p i e t e r s wa n e p o e l
The first speaker of the morning was tonnage of cargo. In Africa OR Tambo International Airport is
Pieter Swanepoel, a town planner number one. In South Africa OR Tambo has the majority of
from the City of Ekurhuleni, on departing passengers ‑ 54% ‑ with Cape Town second at 24%.
Planning the Ekurhuleni Aerotropolis.
He asked why and what is the The Aerotropolis Model: (1) is a new strategic approach to airport
importance of development around planning and commercial land use, simultaneously benefiting
an airport? What does ‘aerotropolis’ airport, region and nation; (2) offers businesses located on
mean? ‘An aerotropolis is a city built and near the airport speedy connectivity to their suppliers,
around an airport offering its businesses speedy connectivity to customers, and enterprise partners nationally and worldwide;
their suppliers, customers and enterprise partners nationally and (3) contains the full set of commercial facilities that support
world‑wide.’ (Kasarda; Ekurhuleni PLUG (Planning & Land Use airlines and aviation‑linked businesses as well as millions of
Guidance)) air travellers who pass though the airport annually; (4) is an
‘inside the fence’ airport city which is the commercial core of
Aerotropolis development carries political support. During the the aerotropolis, operating as its multimodal central business
State of the City Address as well as the Budget Speech by district heavily leveraged by the passenger and cargo terminals
the Executive Mayor, Clr Mondli Gungubele, the aerotropolis of the airport.
concept for Ekurhuleni was announced: “Ekurhuleni Metropolitan
Municipality resolved to develop and implement the aerotropolis Such an aero precinct will consist of a commercial node of
strategy in order to leverage economic benefits that accrue from 1 789 ha, residential node of 409 ha, a retail node of 1 422 ha,
being home to the busiest airport on the African continent, the an industrial node of 2 799 ha, the Kempton Park mixed node of
OR Tambo International Airport.” 1 208 ha and the Rhodesfield mixed node of 233 ha.
An airport city is an efficiently designed international transport The critical success factors depend on the planning of the
hub for both passengers and cargo with an urban character. business site and its profitability, the airport and surface
The model recognises that an airport can do more than perform transportation planning objectives, the urban design with
its traditional aeronautical services, that it can evolve new regard to economic efficiency, aesthetic appeal and social
non‑aeronautical commercial facilities, services and revenue and environmental sustainability, as well as integrated surface
streams. It is a place where work and recreation meet. Through transportation planning around the airport with regard to rail and
several aviation sectors such as airlines, airports, the supply roads.
chain, the spending by employees and benefits through tourism,
the aviation’s economic footprint is responsible for an annual The end product gives an opportunity to develop a thriving airport
GDP of R 74.4 billion, providing employment for 342 000. city and aerotropolis at and around OR Tambo International
Airport, which in the long run will help define our future and
International airport rankings categories such as throughput of long‑term identity. n
passengers place OR Tambo International Airport at 81, with
17 787 673 passengers per year and at 53 in the category Write-up: Anton Swanepoel
THE SOUTH AFRICAN
12 VALUER
OCTOBER 2013, NO 114next generation inland port and logistics gateway 3
Tambo S prin g s
b y T U M I M O H U L A TS I O F I N F R A M A X
The Southern African logistic
NEXT GENERATION LOGISTICS GATEWAY – AN OVERARCHING PROGRAM
platforms from a shipping side
Integrated
Integrated
currently are Richards Bay which Regional Catchment Time Sensitive Regional Multimodal
(sea-air-land)
Network Manufacturing Capability
handles bulk exports (coal, and Processing within
FTZ - EPZ
magnetite, chrome) and breakbulk; (Industrial/Free Trade/
Export Processing Zone)
Preclearance
Next Generation
Durban handling containers, (Custom & Security) NEXT GENERATION Information Technology
as part of LOGISTICS & Communications
breakbulk, agri‑bulk and Twinned Inland Port
Network
GATEWAY Functions
automotives; East London handles Entry point to
dedicated land feeders
containers, breakbulk, agri‑bulk and automotives; Ngqura (the Public – Private / land bridges Multifunctional
Partnership as
Work – Live – Recreation
deepest port) – containers; Port Elizabeth – containers, breakbulk, an Overarching Program
Green Environment
bulk and automotives; Saldanha – bulk (export iron ore) and
breakbulk; Cape Town – containers and breakbulk. The ports are TAMBO SPRINGS
NEXT GENERATION INLAND PORT AND LOGISTICS GATEWAY
linked to the inland regions by road and rail. The port of Maputo
in Mozambique is also linked by road and rail to Gauteng. To put Tambo Springs in context Tumi showed where Tambo
Gauteng, with a population of twelve million people, is an Springs is and how connected it is. It is connected to the main
anomaly as it is 600 km from the closest harbour. arteries to Durban and Cape Town. The N1 and the N3 carries
the biggest movement of freight by road in the whole of Africa.
Gauteng transportation and logistics considerations The Capecore and Natcore rail lines pass through the site. The
At present the underlying elements are site is 1 600 ha in extent and within a 40 km radius of major
• excessive use and wear of roads by road freight operators; industrial parks (the factory of Africa). To be multi‑modal the site
• increased harbour and urban congestion which affects must be within easy reach of rail, road and air transport and the
deliveries; site works well in this respect.
• fragmented freight planning by multiple players.
Tambo Springs – transportation network needs to ‘twin’ with
Future traffic will see a growth of container movement to inland and cross‑border ports. Gauteng offers regional
Gauteng by land from 3 million TEUs (twenty‑foot equivalent distribution, warehousing, manufacturing/agri production and
units) in 2015 to 4 million TEUs per annum in 2020. (Gauteng intermodal rail connections, with the plan to use the metro
Province Freight Implementation Strategy) passenger rail over night.
Competitive development strategy proposes the next generation SECURE AND BONDED LAND BRIDGE
INTERCONTINENTAL AND
inland port and this requires
LOCAL AND REGIONAL FUTURE
ORIGIN/DESTINATIONS Customs SOUTHERN AFRICAN ORIGIN/
DESTINATIONS
TWINNED PORT
LOCATIONS
GAUTENG
• maintaining a hub status, including transportation and value NEXT GENERATION
INLAND PORT AND
LOGISTICS GATEWAY
added logistics functions; Value Added Logistics Intermodal Yard
• the air platform, including express and traditional air cargo
movement; TWINNED INTERMODAL YARD AND LOGISTICS PARK
SERVICE LEVEL – SHIP ARRIVAL TO CONTAINER DELIVERY -
24 HOURS
• rationalising existing rail with a focus on time‑critical freight;
• creating a logistics platform as an integrated multifunctional LOCAL AND REGIONAL Customs
ORIGIN/DESTINATIONS
capacity;
• addressing virtual connectivity (Information Technology and Value Added Logistics Intermodal Yard
DEEPWATER PORT
Communications – IT&C) issues including the digital trade AND
LOGISTICS GATEWAY
and transportation network (DTTN);
TAMBO SPRINGS
• implementing next generation solutions. NEXT GENERATION INLAND PORT AND LOGISTICS GATEWAY
Transnet’s inland port plan
The competitive advantage that the plan aims to achieve is to do
Transnet’s future plan is to have a freight ring rail around Gauteng
the following movement in 24 hours, as happens in other places
with multiple terminals. One of the first terminals being planned
in the world.
is Tambo Springs where the first container is scheduled to be
offloaded in 2017. Other planned terminals are Sentrarand to
THE SOUTH AFRICAN
VALUER 13
OCTOBER 2013, NO 114the far east, Pyramid and Rosslyn terminal to the north near techniques.
Pretoria. The Master Plan for Tambo Springs has been approved • Cost‑effectiveness is enhanced by the use of reliable lower
by a steering committee that represented relevant government cost rail, in addition to truck , the movement of containers
departments and the developers. and trailers.
• It is located close to OR Tambo International Airport (25km).
• It offers the option of different sized sites, including supersites
TAMBO SPRINGS – TRANSPORTATION NETWORK
for large corporates (75 ha).
GAUTENG TWINNED
INLAND - CROSS
• It offers access to the large labour pool in Gauteng.
METROPOLITAN LTL TRUCK/VAN
BORDER PORTS
• It includes a new enterprise incubator to support SMMEs and
DISTRIBUTION
NETWORK
OVERNIGHT METRORAIL
(ROAD-RAIL)
OR TAMBO a training facility to train employees operating in the logistics
REGIONAL
industry.
DISTRIBUTION
WAREHOUSING
• The development is planned to facilitate the reduction of
ASSOCIATED INDUSTRIAL AREAS
FTL TRUCK
MANUFACTURING
ROAD FEEDER
SYSTEM enterprises’ carbon footprint (a green approach).
/ AGRI PRODUCTION
• Negotiations are under way to secure a range of incentivised
FTL TRUCK
INTERMODAL
RAIL CONNECTOR
BLOCK/UNIT TRAIN
benefits for the development in terms of pending special
COEGA DURBAN economic zone legislation.
CAPE WEST - EAST KWAZULU - NATAL
• It offers the ability to make use of a high speed broadband
TAMBO SPRINGS
NEXT GENERATION INLAND PORT AND LOGISTICS GATEWAY community network.
Tambo Springs job creation scenario Progress
Direct work force • Township establishment is progressing.
Conservative estimates of jobs to be created at Tambo Springs • Environmental reporting obligations database has been
are calculated as follows: issued.
1000 ha (developable) x 20 people employed per hector = • A memorandum of understanding has been signed with
20 000 jobs. Transnet.
An aggressive estimation of jobs created at Tambo Springs is • Transnet has appointed a transactional advisor.
calculated as follows: • Transnet has planned the first phase to be operational in 2017.
1000 ha (developable) x 50 people employed per hector = • There is full support from end users.
50 000 jobs. • A budget has been set aside for the design of the interchange
Associated work force by the Gauteng Department of Roads and Transport.
Indirect jobs created in supporting industries and services is • Tambo Springs is a second strategic infrastructure project
estimated to be between 10 000 to 15 000. (SIP 2: Durban ‑ Free State ‑ Gauteng logistics and industrial
corridor).
Tambo Springs differentiators • Tambo Springs forms part of the Gauteng 25‑year Integrated
• It is located in proximity of the largest industrial area in Africa. Transport Master Plan.
• It is able to serve the Gauteng catchment area using • It forms part of Ekurhuleni’s Aerotropolis Plan. n
‘manufacture to order’ and ‘just in time’ replenishment
THE SOUTH AFRICAN
14 VALUER
OCTOBER 2013, NO 114A lternative B uildin g T echnolo g y ( A B T )
Joe Kondos of Business The challenges when using ABTs are diminishing construction
Development, Absa Home Loans, skills and the perceived high risk on time and finance.
presented a look at ABTs in South Government’s undertaking to provide housing for all and to catch
Africa. ABTs have been around from up with the backlog of housing, as well as the reconstruction
1968 and have had some success in programme, suggests that ABT would be a solution.
the roll outs that have occurred.
From a valuer’s perspective, Joe suggested that market value
ABT is a building system, combined or the depreciated replacement cost method for a non‑active
with components, products and skilled labour, to produce a market, and comparative sales for an active market should be
house within one month. The benefits of an ABT house are the used. n
saving of up to 60% of a homeowner’s heating or cooling bill
because the construction prevents heat loss, and a structure Write-up: Tacey Myers
that is water‑, moisture‑, termite‑ and allergy‑free and has high
wind resistance. Although construction costs are higher, this is
offset by the electricity saving.
S patial and L and U se M ana g ement A ct
( S P L U M A ) , A ct N o 1 6 o f 2 0 1 3
BY A BR I E SNY M A N O F M U LT I PR O F
The Act is good news for it will deal • provide for the facilitation and enforcement of land use and
with most of the town planning development measures;
issues in South Africa. • provide for matters connected therewith.
The purpose of SPLUMA is to Legal status
• provide a framework for spatial SPLUMA repeals the following laws, thus being one law to
planning and land use accomplish matters covered by previous legislation and solves
management in the Republic; issues caused by the Development Facilitation Act:
• specify the relationship between the spatial planning and the • Act No 84 of 1967 Removal of Restrictions Act
land use management system and other kinds of planning; • Act No 88 of 1967 Physical Planning Act
• provide an overall strategy for the inclusive developmental, • Act No 113 of 1991 Less Formal Township Establishment Act
equitable and efficient spatial planning at the different • Act No 125 of 1991 Physical Planning Act
spheres of government (this was fragmented until now); • Act N0 67 of 1995 Development Facilitation Act.
• provide a framework for monitoring, co‑ordination and review
of the spatial planning and land use management system; SPLUMA was gazetted on 13 August 2013 for general notice.
• provide a framework for policies, principles, norms and Regulations have still to be formalised.
standards for spatial development planning and land use SPLUMA has seven chapters and 61 clauses.
management;
• address past spatial and regulatory imbalances;
• promote greater consistency and uniformity in the application
procedures and decision‑making authorities responsible for
land use decisions and development application (easier for
all dealing with town planning issues);
• provide for the establishment, functions and operations of
municipal tribunals;
THE SOUTH AFRICAN
VALUER 15
OCTOBER 2013, NO 114CHAPTER CLAUSES CONTENT Land use management
Existing town‑planning schemes must be converted into a Single
1 1‑5 Definitions, Application,
Land Use Scheme for the entire municipal area. This must be
System of Planning in SA
adopted and approved after public consultation within five years
and Categories of Spatial
of the commencement of the Act. (Tshwane is already on track.)
Planning
This scheme must be in line with an SDF and has the force of law.
2 6‑8 Key Principles
It will be easier to implement and will incur penalties if misused.
3 9 ‑ 11 Mandates of National and It must be reviewed every five years and be consistent with the
Provincial Spheres municipal spatial framework so that it is always up to date.
4 12 ‑ 22 Contents of National,
Provincial, Regional and Land development management tribunals
Spatial This is a new concept which will be part of every municipality.
Developmental Municipal tribunals must be established, and consist of five
Frameworks members with a chairperson and deputy chairperson. Officials
5 23 ‑ 32 Adoption of Municipal of the tribunal must be in full‑time service of the municipality
Land Use Schemes plus one person appointed by the municipality with the
6 33 ‑ 52 Municipal Planning necessary expertise who is not an employee of the municipality.
Tribunals The officials should not be municipal councilors (to avoid politics
7 53 ‑ 61 General Provisions creeping in). The evaluation of land use development can be
done by the tribunal or an official. Regulations for this are still
Categories of spatial planning are municipal planning – integrated to be finalised.
development planning (IDP) to ensure that planning takes
place coherently and the inequalities of the past are erased; The minister must, after public consultation, prescribe time
provincial planning – provincial spatial development frameworks frames for consideration and determination of an application
(SDFs); and national planning – national spatial development before a municipal planning tribunal. Regulations relating to time
frameworks will form the basis of the former two levels. All three frames may apply differently to municipal planning tribunals and
levels of plans will eventually ‘talk to one another’. to different types of land development applications. These will
be inforcable and will help to speed up development.
Development principles, norms and standards apply to all
organs of state and other authorities responsible for the The registration of any property resulting from a land development
implementation of legislation regulating the use of land. There application may not be performed unless the municipality
will be no exclusions as was the case before. The principles are certifies that all the requirements and conditions for the approval
spatial justice, spatial sustainability, efficiency (adapting to a have been complied with. In this way municipalities will exercise
new challenge), spatial resilience and good administration. greater control over building plans passed and the transfer of
property.
Municipal, provincial and national spatial development
frameworks are required. Municipal SDFs must be adopted For copies of the Act and/or enquiries email info@mpdp.co.zan
by notice in the Provincial Gazette. The content is prescribed
according to principles and norms.
THE SOUTH AFRICAN
16 VALUER
OCTOBER 2013, NO 114R e z onin g s , subdivisions and
consolidations
Andre van Nieuwenhuizen of NTA properties. He explained consent use and what to look for in a
Town Planners discussed the zoning certificate.
purpose of town planning schemes,
on which the valuation of properties Primary and secondary rights were differentiated from rezoning
is based, how to read and interpret of properties. The processes of applying for rezoning and
them. Their purpose is to regulate, subdivision, the time lines involved and the motivational
control, protect and map up information needed to fast track these were all explained. n
I ntroducin g R I C S
Louis Taderera of the Northern RICS as full members (MRICS). The RICS reserves the right,
Branch reminded members that however, to examine applicants by means of written reports and
persons registered with the SACPVP a presentation before a panel of assessors if and when it deems
as professional valuers and with a this necessary.
minimum of ten years'
post‑registration relevant experience Member benefits
are eligible for direct entry to the RICS members increase their career opportunities and earning
RICS. potential, join an international network of property professionals,
follow a code of conduct and apply practices recognised by the
The Royal Institution of Chartered Surveyors (RICS) is the world’s public, earn clients’ confidence, and benefit from continuing
leading qualification when it comes to professional standards in professional development.
land, property and construction. The RICS is an independent
professional body originally established in the UK by Royal Worldwide mark of property professionalism
Charter. Since 1868, the RICS has been committed to setting In a world where more and more people, governments, banks
and upholding the highest standards of excellence and integrity and commercial organisations demand greater certainty of
– providing impartial authoritative advice on key issues affecting professional standards and ethics, attaining RICS status is the
businesses and society. recognised mark of property professionalism.
The RICS is a regulator of both its individual members and firms, Over 100 000 property professionals working in the major
enabling it to maintain the highest standards and providing the established and emerging economies of the world have already
basis for unparalleled client confidence in the sector. recognised the importance of securing RICS status by becoming
members.
Persons attaining a ‘professional valuer’ designation through
registration with the SACPVP (registered professional valuers) To join
with a minimum of ten years' post‑registration relevant Visit www.rics.org/MENEA or contact Craig Hudson or Helen
experience are eligible for direct entry into membership of the Andrews at RICS South Africa on +27 (11) 467 2857. n
THE SOUTH AFRICAN
VALUER 17
OCTOBER 2013, NO 114S upplementar y valuations : W hat y ou
should know
BY BEN ESPA C H
Municipalities must prepare a The rules of the game are:
supplementary valuation roll to • At least one supplementary roll must be published per year.
update their valuation rolls at least • The date of valuation is the same as for the general valuation.
once a year. • The supplementary roll must be advertised for inspection and
objections for at least 30 days.
Section 78 of the Municipal • The right to object and appeal is the same as for a general
Property Rates Act (MPRA) valuation roll.
lists the circumstances when a Proposed changes to section 78 will resolve most of the issues.
supplementary valuation must be made. The municipality has The provision to include clerical errors as a supplementary
no discretion in this matter; it must be done. valuation is a good example of improving the legislation. Another
positive change is that corrections to over‑valuations will be
Condition Effective date Example back‑dated, but those to under‑valuations will not.
Omitted from roll Effective date of Property not
supplementary roll on general or In future, the owner will have to be informed of a supplementary
supplementary valuation and municipalities will not need to wait for the
rolls publication of a supplementary roll to levy rates on supplementary
valuations.
Included in Date of inclusion Change in borders
municipality of municipality
The challenge to deal with the backlog of supplementary
Subdivisions and Registration date New townships
valuations is a reality in most of the municipalities and will affect
consolidations and sectional title
property owners. n
schemes
Change in value Date of change New building,
additions or
demolition
Incorrectly valued Effective date of Over‑ and
supplementary roll under‑valuations
Revalue Effective date of Change in external
supplementary roll circumstances
affecting the value,
excluding change
in general market
conditions
Change in Date of change Change in use or
category zoning
THE SOUTH AFRICAN
18 VALUER
OCTOBER 2013, NO 114aspects that may influence property values
Water R i g hts ‑ L e g al aspects that may
in f luence propert y valuers
by Francois van der Merwe of the Department of Water Affairs
The purpose of the paper was to dam, weir, lake, pan, spring, aquifer, wetland or any surface
provide valuers with some of the run‑off. Approval must be obtained from the authorities for the
tools to determine whether a water use and storage of water irrespective of the source. A water user
use entitlement does exist on land, must officially notify the Department of Water Affairs of the water
and if it does, what the extent is. It use and the extent of the use by registration. But a registration
gave an overview of aspects related certificate is not proof of an entitlement or an authorisation to
to the right to use water according to use water.
Chapter 4 (sections 21 to 55) of the
National Water Act (Act 36 of 1998) (NWA). Francois explained how to translate cubic metres per year to
hectares and the process of transferring water use from one
Water use includes the taking of water from a water resource property to another. n
and the storing of water. A water source includes a river, stream,
S ectional T I T L E A M E N D M E N T B I L L
Marina Constas, from BBM Law, must be included in the sales agreement and registered as such.
discussed the amendments to the Should an exclusive use area be created, a special resolution
Act. All regulations have not yet been must be drawn up and 75% of the owners in the scheme must
disseminated to all relevant parties. agree to this in writing. The exclusive use area must be shown
on the sectional plans otherwise it is not registered.
One of the most significant changes
is the establishment of an office of Section 25 of the Act deals with the real right to extend. This real
the ombudsman. In future all filing, right must be included in the sale agreement with the developers
storing, disputes and training will be done by the ombudsman and must have a stipulated time period for construction ‑ it
who will be financed by the Department of Human Settlements. cannot be open‑ended. The developer must make a contribution
This means that all sectional plans and rules will be housed at towards the levy during construction of the real right to extend.
the office of the ombudsman and no longer at the Deeds Office.
Home owners associations, retirement villages and all tenant Additional new legislation on extensions of units is expected
issues will be handled by the ombudsman. soon. In future a deviation of 20% of the area of extension of the
unit needs the approval of all bond holders in the scheme, as
It is not commonly known that the changing of an exclusive use well as the land surveyor, surveyor general and the deeds office.
area from one type to another is illegal. For example, changing Currently the deviation is 10%.
a carport into a room is considered changing the nature of
the exclusive use and this is not permitted. Payment is now It should be noted that a duet is a sectional scheme and requires
expected on an exclusive use area over and above the current both owners to agree to any alterations or amendments and
levy and this will include electricity and water usage. Trustees sign them off. n
will be expected to include these additional costs in levy
statements. When purchasing an exclusive use area, this area Write-up: Tracey Myers
THE SOUTH AFRICAN
VALUER 19
OCTOBER 2013, NO 114You can also read
