Municipal Valuations and Disputes

Municipal property valuations can assist sellers in determining an appropriate asking price for a property, but property owners should also keep an eye on these figures so as to plan their monthly expenses properly…

Property Blog Articles | Advice | Contractual Matters | Market News

The impact of municipal valuations

Municipal valuations, done by authorized individuals on behalf of the relevant local municipality, will be a determining factor in the calculation of monthly property rates to be paid by homeowners. It goes without saying that valuations have to be adjusted from time to time in order to reflect realistic values and therefore, if a property’s value is assessed to have increased, the monthly property rates payable will most likely increase proportionately.

The valuation process

Each municipality maintains a valuation roll, a list that includes all properties within its jurisdiction and its current value – for example, the Johannesburg Metro currently has 879 005 properties on its valuation roll. According to legislation the valuation rolls should be updated annually through property valuations so that the roll reflects a market-related value for each property although the said legislation also makes provision for extended periods.

Municipal valuations and the underlying valuation process may differ slightly from council to council. It is therefore necessary to find out the details from the specific council in whose jurisdiction the property falls Properties are valued in accordance with generally recognized valuation practices, methods and standards and the provisions of the Municipal Property Rates Act, 6 of 2004 (MPRA). Although physical inspections are conducted in some cases, this is at the discretion of the relevant council as this is not a specific requirement of the MPRA. However, should a physical inspection be undertaken, it must be conducted by an authorized official who is required to produce an ID card on demand.

Valuation disputes

Again, the process may vary slightly from municipality to municipality. The council will publish their dispute resolution procedures, which will, in broad terms, be based on the MPRA. Property owners should view the full valuation services including dispute processes for the relevant municipality, e.g. City of Johannesburg.

Any party wishing to dispute a municipal valuation can approach the relevant municipality directly (metro municipalities will have a dedicated department that will assist in dealing with such disputes), within the prescribed timeframe to make an objection to the valuation roll. A dispute fee will be charged for the process, and such disputes may also entail further third-party valuations which can be costly.

Follow Snymans on Facebook for more legal information, tips and news about property.

17708

Recommended for you

Property Blog Articles | Advice | Contractual Matters | Market News
Legislative Guidelines

Attorney Trust Accounts

702

One of the fundamental components of being a legal practitioner is acting as a fiduciary of client funds which comes with a duty of care and significant responsibility.

Read More
Legislative Guidelines

Is the deeds registries system ready for a change?

5379

The final step in the property transfer process is registration of the new title deeds in the Deeds Office. With the recent introduction of new legislation (the Electronic Deeds Registration System Act), we take a closer look at what this means for the registration process.

Read More
Property Blog Articles | Advice | Contractual Matters | Market News
Legislative Guidelines

Court ruling: attorney declared negligent in dealing with client funds

5531

In the recently decided 2019 case of Jurgens and another v Volschenk, the Eastern Cape Division of the High Court made it clear that the utmost care must be taken by attorneys when handling trust money or dealing with a client’s finances, and that failing to do so will have severe consequences.

Read More
Legislative Guidelines

The Electronic Deeds Registration Act

9827

The Electronic Deeds Registration System Act 2019 and the Property Practitioners Act of 2019 (repealing the Estate Agencies Affairs Act 112 of 1976) were signed into law by his Excellency the State President on 2 October 2019.

Read More
Property Blog Articles | Advice | Contractual Matters | Market News
Legislative Guidelines

Money laundering and the Financial Intelligence Centre Act

10824

The sale of a property and the transfer of ownership along with the transfer of significant funds opens itself up to fraudulent activity which is why it is important to familiarise yourself with the risks surrounding money laundering and how the Financial Intelligence Centre Act aims to protect citizens.

Read More

Need more Snymans content?

Sign up for our monthly newsletter.

Municipal Valuations and Disputes

Municipal property valuations can assist sellers in determining an appropriate asking price for a property, but property owners should also keep an eye on these figures so as to plan their monthly expenses properly…

Property Blog Articles | Advice | Contractual Matters | Market News

The impact of municipal valuations

Municipal valuations, done by authorized individuals on behalf of the relevant local municipality, will be a determining factor in the calculation of monthly property rates to be paid by homeowners. It goes without saying that valuations have to be adjusted from time to time in order to reflect realistic values and therefore, if a property’s value is assessed to have increased, the monthly property rates payable will most likely increase proportionately.

The valuation process

Each municipality maintains a valuation roll, a list that includes all properties within its jurisdiction and its current value – for example, the Johannesburg Metro currently has 879 005 properties on its valuation roll. According to legislation the valuation rolls should be updated annually through property valuations so that the roll reflects a market-related value for each property although the said legislation also makes provision for extended periods.

Municipal valuations and the underlying valuation process may differ slightly from council to council. It is therefore necessary to find out the details from the specific council in whose jurisdiction the property falls Properties are valued in accordance with generally recognized valuation practices, methods and standards and the provisions of the Municipal Property Rates Act, 6 of 2004 (MPRA). Although physical inspections are conducted in some cases, this is at the discretion of the relevant council as this is not a specific requirement of the MPRA. However, should a physical inspection be undertaken, it must be conducted by an authorized official who is required to produce an ID card on demand.

Valuation disputes

Again, the process may vary slightly from municipality to municipality. The council will publish their dispute resolution procedures, which will, in broad terms, be based on the MPRA. Property owners should view the full valuation services including dispute processes for the relevant municipality, e.g. City of Johannesburg.

Any party wishing to dispute a municipal valuation can approach the relevant municipality directly (metro municipalities will have a dedicated department that will assist in dealing with such disputes), within the prescribed timeframe to make an objection to the valuation roll. A dispute fee will be charged for the process, and such disputes may also entail further third-party valuations which can be costly.

Follow Snymans on Facebook for more legal information, tips and news about property.

17708