VALUER THE SOUTH AFRICAN - PRACTICAL WORKSCHOOLS 2013 IPTI SYMPOSIUM FEEDBACK NORTHERN BRANCH COUNTRY SEMINAR KZN-COGTA EXPERIENCE

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VALUER THE SOUTH AFRICAN - PRACTICAL WORKSCHOOLS 2013 IPTI SYMPOSIUM FEEDBACK NORTHERN BRANCH COUNTRY SEMINAR KZN-COGTA EXPERIENCE
THE SOUTH AFRICAN
OCTOBER 2013, NO. 114

                        VALUER

                                Practical Workschools 2013
                                IPTI Symposium feedback
                         Northern Branch Country Seminar
                                 KZN-CoGTA experience
VALUER THE SOUTH AFRICAN - PRACTICAL WORKSCHOOLS 2013 IPTI SYMPOSIUM FEEDBACK NORTHERN BRANCH COUNTRY SEMINAR KZN-COGTA EXPERIENCE
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VALUER THE SOUTH AFRICAN - PRACTICAL WORKSCHOOLS 2013 IPTI SYMPOSIUM FEEDBACK NORTHERN BRANCH COUNTRY SEMINAR KZN-COGTA EXPERIENCE
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
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VALUER THE SOUTH AFRICAN - PRACTICAL WORKSCHOOLS 2013 IPTI SYMPOSIUM FEEDBACK NORTHERN BRANCH COUNTRY SEMINAR KZN-COGTA EXPERIENCE
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

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PROUD SUBSIDIARY OF EPS

                                                         THE SOUTH AFRICAN

2745_JHI_ADD_S.A Valuer_TF_September_2013_PRINT.indd 1
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VALUER THE SOUTH AFRICAN - PRACTICAL WORKSCHOOLS 2013 IPTI SYMPOSIUM FEEDBACK NORTHERN BRANCH COUNTRY SEMINAR KZN-COGTA EXPERIENCE
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.

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VALUER THE SOUTH AFRICAN - PRACTICAL WORKSCHOOLS 2013 IPTI SYMPOSIUM FEEDBACK NORTHERN BRANCH COUNTRY SEMINAR KZN-COGTA EXPERIENCE
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

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VALUER THE SOUTH AFRICAN - PRACTICAL WORKSCHOOLS 2013 IPTI SYMPOSIUM FEEDBACK NORTHERN BRANCH COUNTRY SEMINAR KZN-COGTA EXPERIENCE
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

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VALUER THE SOUTH AFRICAN - PRACTICAL WORKSCHOOLS 2013 IPTI SYMPOSIUM FEEDBACK NORTHERN BRANCH COUNTRY SEMINAR KZN-COGTA EXPERIENCE
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

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VALUER THE SOUTH AFRICAN - PRACTICAL WORKSCHOOLS 2013 IPTI SYMPOSIUM FEEDBACK NORTHERN BRANCH COUNTRY SEMINAR KZN-COGTA EXPERIENCE
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

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    OCTOBER 2013, NO 114
to 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 114
Conclusion                                                           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 114
N 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 114
P 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 114
next 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 114
the 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 114
A 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 114
CHAPTER                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 114
R 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 114
S 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 114
aspects 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 114
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