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…

The process to approval for extending a Sectional Title Unit

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.

Recommended for you

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

SPLUMA certificates required for property transfers in Mpumalanga[post_view before=""]

SPLUMA stands for the Spatial Planning and Land Use Management Act, and SPLUMA certificates are governed by the act together with the by-laws of each local municipality.

Read More
My name has changed - what happens to my property’s title deed?
Legislative Guidelines

Trust investments and the Legal Practice Act[post_view before=""]

The Legal Practice Act, which has replaced the Attorneys Act, has made some changes regarding monies paid into attorney trust accounts and the investment of this money on a client’s instructions.

Read More
Historical monuments and renovation restrictions
Legislative Guidelines

Destruction of a sectional title scheme: precautionary steps to take[post_view before=""]

There are several reasons why a landowner or developer may decide to build a new development in the place of an existing sectional title scheme. For example, the existing scheme may be dated and no longer suited to the area. Or the demand for residential units may be very high but the old development is undesirable.

Read More
My name has changed - what happens to my property’s title deed?
Legislative Guidelines

21 facts you should know about the POPI Act[post_view before=""]

On 1 July 2021, the Protection Of Personal Information Act 4 of 2013 (POPI Act) comes into full force and effect. While the Act was signed into law on 19 November 2013, the majority of its sections were only implemented on 1 July 2020, with a one-year grace period. Now, with the remaining sections coming into effect on 30 June 2021, the Act becomes enforceable by the Regulator.

Read More
Minors and immovable property
Legislative Guidelines

Court ruling: Can you sell a property that’s not in your name?[post_view before=""]

The recent judgement in the matter of Tomlinson and Another v Tomlinson N.O and Others (11764/2015) [2021] ZAKZDHC 8 (19 March 2021) in the Kwazulu-Natal High Court, Durban has drawn attention to whether someone is able to sell a property if he or she is not the registered owner.

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…

The process to approval for extending a Sectional Title Unit

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.