Frequently asked questions
The appointed trustees have the fiduciary duty to ensure that the body corporate is adequately insured, bearing in mind that claims are subject to averaging by the insurer if the client is found to be underinsured.
For example, when the body corporate is insured for only 80% of its true replacement cost, based on bad advice received from the appointed valuer, a claim filed for, say, R2 000 000 is likely to be averaged. This means that the claim payout will be reduced by 20%, leaving the trustees personally liable for the resultant R400 000 loss suffered by the affected homeowners.
The body corporate’s trustee liability cover does not protect the trustees if they are proven to have acted in gross negligence by appointing the valuer purely on the merit of cost and not qualification.
In this case, the trustees may institute action against the valuer, but might not stand to gain much in case the valuer does not have adequate professional indemnity cover.
The difference between valuers’ fees is usually negligible, so why put yourself at risk for the sake of saving the body corporate a few rand?
Read more: Trustees made to pay out of their own pocket
If you have been escalating your sum insured by a flat rate of 10% year after year, it is very likely that your buildings are overinsured by 20, 30, or even 50%. A professional insurance valuation will pay for itself within a short time by correcting your sum insured.
Read more: How to save insurance costs without losing cover
Read more: Escalation of Buildings Insurance
Our standard procedure for sectional title valuations is to physically measure up and quantify all common property items and assess the replacement cost of the owned sections in accordance with the latest approved sectional plan obtained from the Surveyor-General’s office and in accordance with the standard of workmanship and finishes observed by our valuer on site.
Read more: How we assess a building’s replacement cost
Owner-installed unit upgrades may include building extensions, enclosed patios, superior internal finishes, air conditioning, swimming pools, lapas, security features etc. On special request and at an additional cost, Mirfin will inspect and asses your unit upgrades, provided that such request is received at least 48 hours in advance and access to the unit is warranted when the valuer is on site.
(Since it is logistically near impossible for a valuer to arrange access to and inspect every unit in a complex, the onus is normally on the individual owners to report to the trustees the replacement cost of upgrades to their units which they wish to be insured additionally and for their own account.)
Read more: How to insure owner-installed upgrades in sectional title units
If the actual building structures deviate from what is depicted on the latest approved sectional plan, it must be assumed that the alterations have not been approved by the town council and are therefore illegal and possibly uninsurable. We recommend consulting your insurance broker about the cover available for your specific alterations in the event of a claim.
Read more: How to insure owner-installed upgrades in sectional title units
Yes, this is possible, however, the valuer shall neither be held liable for any corrections required subsequently, nor for any financial loss resulting from a non-conventional valuation.
The town council initially approves the proposed building plans, but a land surveyor must verify that the alterations were indeed made in accordance with the approved plans and draft an amended sectional plan for approval by the Surveyor-General. Once the sectional plan is approved, the alterations are deemed to be lawful and eligible for full insurance cover.
Insuring non-approved alterations may possibly expose the body corporate to underinsurance and make the trustees personally liable for financial losses in the event of a claim. We therefore recommend consulting the insurer about the extent of cover provided while the body corporate waits for the amended sectional plan to be drafted and approved.
Read more: Why is it critical to keep your sectional plans up to date
- Sign in to the Dashboard.
- Select the relevant property from the “My Portfolio” tab.
- Go to the “Insurance” tab.
- View the amount displayed under “Escalated Value as at Today”.
- Click the “View Escalation” link to download a live valuation update in PDF format.
- Sign in to the Dashboard.
- View the insurance status of all your buildings in the “Insurance Status” column, OR
- Select a property from the “My Portfolio” tab and Go to the “Insurance” tab.
The insurance status is based on a comparison between the escalated insurance value and the current sum insured. The current SI must be input by the user.
Yes, a reminder will be automatically emailed to you shortly before the next valuation is due again.
Estimating the replacement cost of a “heritage” building on the assumption that the building will be reinstated using historically correct building materials and artisanship (“old for old”) requires specialised input from the relevant experts. This tends to be a tedious and costly process and can easily amount to a fee of more than 10 times that of a valuation done on the assumption of reinstating the building “old for new”.
Insuring a building on the basis of “old for old” will also have a substantial impact on the payable premium as the building’s replacement cost increases two- or threefold.
We encourage our clients to submit any queries by email or via the “Lodge a query” link provided in our survey reports so that all concerns may be addressed in a proper manner and at no additional cost.
Should an in-person consultation with one of our valuers be required, the valuer will contact you to schedule an appointment. In this case, a fee of R950 per hour will be charged, excl. VAT and call-out.
While CSOS does not have the resources to pro-actively police each and every community scheme, it relies on whistleblowing, lodged disputes and random checks to reveal non-compliance. When detected, CSOS will hold the responsible parties accountable and enforce compliance through appropriate civil and criminal sanctions as well as imposing penalties with the aim to set a deterrent for other offenders.
The purpose of the 10-year maintenance plan is to reasonably estimate the financial resources to be allocated to the reserve fund for the planned maintenance, repair and replacement of the body corporate’s major capital assets.
The idea of a 10-year maintenance plan is not to repair or replace capital assets only when they fail, but to schedule general preventative maintenance that will extend the useful life of all capital assets and avert failure.
Read more: The real reason for 10-year plans
It is impossible to set up a maintenance plan that will remain valid for a period of 10 years as adjustments need to be made to account for real-life dynamics in the scheme, inflation of costs, shifting priorities etc. Therefore, the 10-year maintenance plan must be updated at least annually for the AGM, as required by legislation.
Read more: Why should a body corporate’s 10-year maintenance plan be kept updated?
Sooner or later, maintenance issues will arise in any building and, as such, must be anticipated and planned for in advance. In fact, the aim of the 10-year maintenance plan is to practise preventative maintenance to avoid emergency repairs or replacement of assets.
If a cost item adds value to a capital asset, extends its useful life and/or prevents its deterioration (= preventative maintenance) such expenditure is typically allocated to the reserve fund.
Examples of reserve fund expenditure include exterior painting, waterproofing, roof replacement, security system upgrades, driveway renovations, modernising elevator cabs and upgrading to energy-efficient lighting.
The administrative fund pays for operational expenses such as management fees, insurance premiums, salaries and maintenance activities that keep assets in good working order (= routine maintenance).
Routine maintenance activities include replacing a light bulb, fixing a leaking tap, repairing a faulty gate motor, cleaning the pool, gardening services, elevator maintenance and other related tasks that are performed on a frequent or ongoing basis.
Mirfin’s approach is to provide a cost-effective 10-year maintenance plan for the cash-strapped body corporate. Our surveyor quantifies the major capital assets for which the body corporate is responsible and applies a reasonable approximation of maintenance costs in accordance with the apparent state of repair and the estimated maintenance cycle or remaining lifespan of each asset. The final product is a legally compliant 10-year maintenance plan that is based on the assumption that the body corporate is financially capable.
It must be noted that the 10-year plan is a “living” document that can only gain in accuracy and relevance through regular input by the trustees of the body corporate. To this end, the free and user-friendly Mirfin Dashboard empowers trustees to adjust the proposed cost estimates, maintenance cycles and maintenance scheduling to suit the body corporate’s preferences and in accordance with quotations obtained from the preferred maintenance contractors.
- The trustees have better insights into the body corporate’s current cash flow and true financial capability than an external service provider.
- A body corporate’s financial status is likely to change at any time due to unexpected expenses, arrear levies etc.
- The remaining useful life of an asset cannot be accurately predicted as there are many factors that might delay or accelerate its deterioration.
- The future escalation of costs cannot be accurately predicted.
- The body corporate’s preferred maintenance contractors might quote a different cost than what was estimated by the provider of the 10-year maintenance plan.
- The body corporate might wish to specify the technical scope differently to what the service provider envisioned.
- The body corporate might decide to re-prioritise or stagger the recommended maintenance activities.
- No service provider is able to provide an accurate cost estimate for all maintenance activities alike, such as construction, painting, waterproofing, elevators, security, access control, electrical, plumbing etc.; the onus is on trustees to obtain cost proposals from the relevant specialist contractors, bearing in mind that these will likely differ in price, scope and quality of workmanship and materials; only the body corporate can determine which maintenance cost proposal will best suit the scheme’s technical and qualitative requirements.
- It is affordable, even for cash-strapped bodies corporate.
- It can be easily maintained and updated on the Mirfin Dashboard by trustees with very little effort and no prior accounting knowledge.
- The Mirfin Dashboard enables trustees to create a cash flow forecast based on the budgeted income and expenses for both the reserve fund and the admin fund.
- The Mirfin Dashboard automatically re-calculates the levy contribution schedule (including the CSOS levy) in accordance with the adjustments made.
- The Mirfin Dashboard allows you to create different financial scenarios for budgeting and voting purposes.
Read more: How to achieve financial prosperity in a body corporate
- Legally compliant 10-year maintenance plan
- Life-cycle cost analysis
- Maintenance, repair and replacement cost estimates
- Reserve fund forecasting
- Admin fund budgeting
- Cash flow planning
- Levy calculation per unit
Read more: 10-year maintenance plans for sectional title schemes: What you need to know
The reserve fund is replenished with monthly levy contributions and interest earned on the account. The minimum annual reserve fund contribution is determined by the ratio between the previous financial year's reserve fund balance and total admin fund contribution.
Read more: Why the reserve fund budget plays a critical role in the 10-year plan
If the available funds are insufficient for the required maintenance, they can be supplemented by way of raising a special levy or obtaining a bridging loan. A reserve fund cashflow forecast based on the 10-year maintenance plan will guide you on avoiding the need for supplementary contributions.
Let Mirfin's online dashboard guide you in determining the correct reserve fund contribution and planning your reserve fund's cashflow.
Watch: An 8-step guide to setting up a financial roadmap for your body corporate
A section's monthly levy constitutes the sum of its share in the reserve fund levy, the admin fund levy and the CSOS levy:
Reserve Fund Levy:
This is calculated as the sum of the annual reserve fund contribution and the supplementary contribution multiplied by the section's registered participation quota (section floor area divided by total floor area) divided by 12 months.
Admin Fund Levy:
This is calculated as the sum of the combined income amount multiplied by the section's registered participation quota (section floor area divided by total floor area).
CSOS Levy:
This is calculated as (the admin fund levy amount less R500) multiplied by 2%, but not exceeding R40 per month.
Read more: How to calculate your community scheme levy
The levy schedule is displayed on the PDF file that you can download from the “Reserve Fund Planning” and “Admin Fund Planning” tabs.
Read more: Setting levies without bias
A property priced on the strength of a Mirfin valuation will attract notably less buyer resistance, if any at all. This means that the time span between marketing and obtaining a signed "offer to purchase" will be reduced considerably. Properties which are over-priced will take a long time to sell, if at all. It has been proven time and again that properties which remain unsold for a long period of time will eventually become stigmatised in the sense that potential buyers might become suspicious of the property, which may well result in a sale below market value.
With a Mirfin valuation in hand, you, the seller, will have the peace of mind to grant a sole mandate to your preferred estate agent and strengthen your negotiating leverage with the estate agent. It puts you in charge! A Mirfin valuation is an affordable and very feasible instrument to put your estate agent to the test by asking them to support their sales promises with a professional valuation.
The capitalisation rate is the ratio between the net operating income produced by an asset and its capital cost (the original price paid to buy the asset) or alternatively its current market value, i.e. cap rate = annual net operating income / cost (or value). The capitalisation rate is best determined by referring to market transactions of comparable properties as it is based on information derived from market analysis. The main influences of the capitalisation rate are interest rate and risk, i.e. the higher the interest rate and the higher the risk, the better the return an investor will require. The risk inherent to income producing properties reflects the degree of certainty that the expected income will be realised.
A standard market price valuation by Mirfin includes the following elements, as appropriate for the subject property and purpose of valuation:
- Executive summary
- Property details
- Description of property
- Description of buildings
- Risk & maintenance observations
- Cost calculation
- Analysis of comparable sales
- Analysis of comparable rentals
- Calculation of income capitalisation
- Photographs of the property
- Supporting documents (e.g. map of macro-location, micro-location, building plans, diagrams, title deed information etc.)
- Explanatory information (glossary, valuation methods etc.)
Yes, Mirfin offers a 50% discount on so-called “desktop” valuations where the property is inaccessible, a rough indication of market value will suffice, or when cost is a major concern. It must be noted that a “desktop” valuation is unable to take into account certain factors which may affect the market value, such as the state of repair, environmental concerns etc. Therefore, Mirfin cannot be held liable for any claims arising out of a “desktop” service due to incorrect or absent information which would have otherwise been available to the valuer, had a physical on-site inspection been performed.
Yes, Mirfin can assist with independent and objective market price valuations that are steadfast to the scrutiny of the authorities.
A market price valuation is useful in the following instances:
- making an informed marketing, buying or rental decision
- applying for a mortgage bond
- appropriating a deceased estate
- determining fair compensation for land expropriation under the Land Restitution Act
- dealing with legal settlements, e.g. divorce cases
- contesting municipal rates and taxes
- submitting tax declarations
- establishing an auction reserve price
- preparing a corporate take-over or merger
- winding up an insolvency
- The surveyor will work their way through every room, documenting and photographing every item.
- The surveyor will require a valuation certificate for all jewellery, paintings, artwork, antiques, collections and other valuables.
- Important: Any high-value items not presented to the surveyor or for which no certificate of value is made available, might not be covered by the insurer.
- Jewellery and other valuable assets must always be handled exclusively by the client.
- Daily-use items such as clothing, bed linen, crockery and cutlery are valued by applying an average percentage; any high-value items in this respect must be pointed out to the surveyor.
- As we respect our clients’ privacy, the surveyor will not open any cupboards or drawers or unpack any containers.
- The surveyor will ask the client to provide an estimated value for all the curtains in your building.
- The surveyor will also photograph the exterior of your building.
- Once the survey is completed, all photographs and documents will be kept in an electronic safe and will not be made available to any third party without the client’s written consent.
- To ensure that the valuation is accurate, we may consult with the client again after the survey to agree on a value for unique items for which we were unable to source prices.
The duration of the actual survey depends on the scope of assets to be recorded but usually takes about 2 - 3 hours for an average household. On average, the survey report is completed within 10 -15 working days from the survey date.
Read more: Contents Valuations - How it’s done
While most household and office contents can be replaced “off the shelf” and are easily valued, some assets, like jewellery, artwork, Persian carpets, and collections are unique and irreplaceable. In these cases, the surveyor’s task is to provide proof of ownership by capturing valuables and collectibles on the survey report, either with a client-agreed value or with a “zero” value until the client submits the desired insurance value.
The client may obtain an expert opinion from a jeweller, antiques dealer, auctioneer etc. however, in most cases the true value of unique assets can only be determined through willing-seller-willing-buyer transactions such as at public auctions.
Beware: Some service providers claim to be specialists in valuing of all types of valuables and collectibles because the client has no way of knowing that they merely guessed the value. The fact is that not even a seasoned auctioneer is able to predict what value an item will attain on auction.
Read more: Contents Valuations - How it’s done
The replacement cost assessment of specialised equipment and industrial machinery requires detailed input from the client and/or the relevant equipment vendors. Therefore, Mirfin’s role in determining the replacement value for these assets will be of a secondary nature.
Read more: Contents Valuation: Moveable Asset Registry
- Insurance alerts: see which buildings are over- or underinsured.
- Live valuation updates: view your building’s current replacement value at any time.
- One-click quotations: get a Mirfin quote for your loaded buildings with a single click.
- Admin fund budgeting: use our online template to create and manage your budget.
- Reserve fund planning: keep your 10-year maintenance plan compliant and up-to-date.
- Cash flow planning: avoid special levies by creating a financial roadmap for your body corporate.
- Levy calculations: view your levy schedule in real time.
- Share: enable your colleagues and clients to participate in managing your schemes.
- Document storage: find your valuation report, 10-year plan, insurance policy, sectional plans etc. in one place.
- Earn loyalty rewards: collect XPoints to redeem them for a discount voucher from Mirfin or one of our retail partners.
Read more: The Mirfin Dashboard
Nothing, it’s free!
(Note: Some functionality requires an active valuation and/or 10-year maintenance plan subscription.)
You will receive your login credentials for the Mirfin Dashboard when you first request a quotation on the Mirfin website.
Alternatively, click the “Create account” link on the sign-in page to get started. You can now easily add buildings to your portfolio, request quotations, manage 10-year plans and admin budgets, and view a property’s insurance status.
In case you have forgotten your password, please reset your password.
No problem, you can easily reset your password by clicking the I forgot my password link and following the prompts.
Not at all! You only need to sign in once, and your browser will keep you signed in until you choose to actively log out.
Simple: click the “Share” icon to allocate your clients to the selected property profile.
Alternatively, select a property, click the button “User Profiles”, and then click the “Invite Users” link or icon to add your clients.
Be sure to allocate an appropriate role and access level to each invited user.
A user profile will be created and login credentials automatically emailed to the added users.
Important: Don‘t share your password with anyone!
Reason
Your internet browser stores data and images from visited websites to avoid downloading everything again when you re-visit those websites. This data is stored in your browser cache and becomes outdated when a website is updated or upgraded by its owner. This tends to cause a conflict when your browser wants to display the stored information, but the website wants to push the new information. It is, therefore, necessary to occasionally clear your browser cache.
Cookies are created when you visit a new website to identify you and to improve your web browsing experience. These are also stored locally by your browser, and it is advisable to clear them regulartly to improve browser performance.
Solution
- Clear your browser cache.
- Clear all cookies for the domain “mirfin.co.za”.
- Hard re-fresh your browser (Ctrl + Shift + R).
Mirfin's XPoints Loyalty Programme encourages interaction with the Mirfin Dashboard by awarding experience points for completing specific goals.
Read more: XPoints Loyalty Programme
Collect XPoints by engaging with the Mirfin Dashboard and completing goals.
Read more: The Mirfin Dashboard
Everyone: community schemes, trustees, property owners, portfolio managers... any user who is signed in to the Mirfin Dashboard can collect XPoints!
Read more: XPoints Loyalty Programme
Collect 750 XPoints to redeem them for a discount voucher from Mirfin or one of our retail partners. Simply email xpoints@mirfin.co.za, stating your preferred voucher vendor: Mirfin, Takealot, Woolworths, Superbalist, @Home or Yuppiechef.
Read more: XPoints Loyalty Programme
Use your XPoints to get a discount on Mirfin’s services, maintenance purchases, AGM refreshments, lucky draw prizes etc.
Read more: XPoints Loyalty Programme
Simply send an email to xpoints@mirfin.co.za with the subject line "Balance".
Read more: XPoints Loyalty Programme
Collect 3000 or more XPoints to enter the annual XPoints Lucky Draw which takes place at 12:00 a.m. on the 1st Monday of December.
The winner of the XPoints Lucky Draw receives an additional 3000 XPoints.
Read more: XPoints Loyalty Programme
Many service providers proclaim to specialise in valuing community schemes but without having the necessary pre-requisites:
- Professional Indemnity cover for 10% of the total replacement value, but not less than R20 million (Learn why)
- Access to the latest technological facilities
- Valuation includes a detailed breakdown of replacement costs
- Valuation includes a schedule of replacement values per each unit
- Annual valuation updates between 3-yearly valuations
- Commended by insurers, brokers and property managers
- Positive online reviews
Any valuer can have a bad day and make an error that may cause your building to be underinsured. Are you prepared to assume personal liability for following the valuer’s flawed insurance recommendation? Of course not! You need to be able to hold your service provider accountable in the event of a shortfall in claim pay-out. But if your valuer is not adequately insured, the liability will fall back on you.
Don’t select your valuer purely on the merit of price, rather ensure that they can be held accountable when something goes wrong!
Mirfin’s professional liability is backed by Professional Indemnity cover of R45 million per event. This is unsurpassed by any competitor and may prove to be a lifesaver in the event of an insurance claim.
Why put yourself personally at risk for the sake of saving the body corporate a few hundred rand?
Read more: Trustees made to pay out of their own pocket
We pledge to beat any price for the same service offering. However, in the event of a reduced fee, Mirfin’s professional liability will be adjusted to that of its direct competitor.
But why put yourself personally at risk for the sake of saving the body corporate a few hundred rand?
While some insurance providers and property managers offer to bear or share the cost of the valuation as part of their value-add service, the policyholder normally bears the cost of a valuation.
Yes, as it constitutes an expense on your tax return.
With more than 2 500 sectional title valuations performed annually, Mirfin is obliged to register as a VAT vendor. (In converse, service providers who fall short of the VAT threshold of R1 million turnover per year are unlikely to be highly experienced in valuing community schemes.)
Yes, our service area extends to all corners of South Africa. Mirfin has valuers permanently based in Johannesburg, Pretoria, Cape Town, Durban, Bloemfontein, Port Elizabeth and East London.
All of Mirfin’s survey reports are based on a physical site inspection, unless a client specifically requests a “desktop” service.
A site inspection typically takes 15 - 60 minutes, depending on the size and scope of the subject property, as well as the availability of information from the client and/or contact person on site. However, some surveys can also take an entire day where the property is extensive and the buildings spread far apart.
The turnaround time depends on the size of the project but, in general, our property/buildings valuation report will be delivered to you by email within 4 - 7 working days from the date of inspection.
A site inspection typically takes 15 - 60 minutes, depending on the size and scope of the subject property, as well as the availability of information from the client and/or contact person on site. However, some surveys can also take an entire day where the property is extensive and the buildings spread far apart.
In accordance with our privacy policy, no information pertaining to our clients and their valuation reports shall be divulged by Mirfin to third parties. Any third parties seeking information or a copy of the valuation report shall be referred to the authorised valuation holder.
Market Value is defined as the price at which a property should exchange hands between a willing seller and a willing buyer in an arms-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.
Replacement Cost is the actual cost to replace a structure at its pre-loss condition, including the cost of demolition, rubble removal, architectural services, land surveyors and additional building services.
Read more: Why it is wrong to insure the market value of your house
A valuation is performed to determine an asset’s financial worth or economic value.
An evaluation is an opinion or judgment based on the analysis of the attributes or performance of an asset or person.
Mirfin is not contracted or affiliated to any third parties and is therefore 100% independent and impartial.
Our fees are based on the size of the subject property, as well as the scope of inspection and research required. This is typically measured by the number of sections, units or stands on a communal property, or by the client's approximate indication of the market value or current sum insured. (We reserve the right to adjust the fee in case the client's indication deviates from our assessed value by more than 10%.)
Our fees are standard for all locations located within a 100 km travelling distance from the centres of Johannesburg, Cape Town, Pretoria, Durban, Nelspruit, Bloemfontein, George and Port Elizabeth. Locations beyond the 100 km radius may attract a travelling surcharge.
Prior to making alterations to their owned section, owners are advised to follow these four steps to avoid frustration when lodging an insurance claim or selling their unit:
- Submit proposed buildings plans to the body corporate for approval.
- Obtain approval from the municipality.
- Ensure that construction work is done according to the approved plans.
- Appoint a land surveyor to draft an amended sectional plan for approval by the Surveyor-General.
Keeping the sectional plans up to date at all times is beneficial to the body corporate and individual owners alike and, besides being adequately covered, ensures that every owner is apportioned the correct levies.
Read more: Why it is critical to keep your sectional plans up to date
Yes, Mirfin does provide so-called desktop valuations at a discounted fee. This applies to market price valuations only and offers limited accuracy. A desktop valuation is NOT recommended for replacement cost valuations as they would not be backed by our professional indemnity cover.
The qualifications required to become a professional property valuer are stipulated in the Rules for the Property Valuers Profession, 2020, of the Property Valuers Profession Act, 2000.
The first step is to enrol at a tertiary-education institution that is accredited by the South African Council for the Property Valuers Profession (SACPVP) and to register as a Candidate Valuer with the SACPVP. The candidate must complete the prescribed 4-year courses and pass the required examinations with a degree in Real Estate (majoring in Property Valuation).
After having gained workplace experience under the supervision of either a Professional Associated Valuer or a Professional Valuer for a minimum of 2 years, the Candidate Valuer can advance to become a Professional Associated Valuer by taking the required admission examination for professional associated valuers.
To obtain the highest qualification of Professional Property Valuer, the Professional Associated Valuer can apply after a further 2 - 3 years to prove his or her competence, proficiency, and experience by passing the admission examination for professional valuers.