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LONG-TERM PLANNING

If you have money invested in a community scheme, you will want to ensure that your investment is protected at all times through proper maintenance and insurance of the section for which you are personally responsible, as well as for your undivided share in the common property for which the body corporate is responsible.

 

Most community schemes initially fall short of their projected expenditure requirements and Prescribed Management Rule no. 22 of the Sectional Title Schemes Management Act aims to put these schemes on a prosperous path with continuously improving financials and to let the raising of special levies become a thing of the past. Subsequently, buildings will be better maintained and the allocation of the financial burden will be equally distributed between existing owners and new buyers, not to mention the favourable effect a well-maintained scheme with sound financials will have on prospective buyers (i.e. investors) and hence the market value of all units in such a scheme.

 

Planning ahead for regular maintenance allows for time and finances to be managed more effectively and, if carried out on a regular and orderly basis, the maintenance tasks become less onerous and the costs can be spread more evenly over time. Also, preventative maintenance tends to be much more cost-effective in the long term than having to do emergency repairs.

 

Download Mirfin's maintenance, repair and replacement plan brochure.

WHAT DOES THE LAW PRESCRIBE?

The Sectional Title Schemes Management Act No. 8 of 2011 (STSMA) aims to improve the management of bodies corporate and, as such, the shareholder value for individual members. Therefore, it is prescribed that -

 

  • A body corporate or trustees must prepare a written maintenance, repair and replacement plan for the common property, setting out -

(a) the major capital items expected to require maintenance, repair and replacement within the next 10 years;

(b) the present condition or state of repair of those items;

(c) the time when those items or components of those items will need to be maintained, repaired or replaced;

(d) the estimated cost of the maintenance, repair and replacement of those items or components;

(e) the expected life of those items or components once maintained, repaired or replaced; and

(f) any other information the body corporate considers relevant.

(STMS Act. No. 8 of 2011, rule no. 22.1)

 

  • The reserve fund maintained in terms of section 3(1)(b) of the Act must be used for the implementation of the maintenance, repair and replacement plan of the body corporate referred to in rule 22.

(STMS Act. No. 8 of 2011, rule no. 24.2)

RESERVE FUND FORECAST

A maintenance, repair and replacement plan (MRRP) that covers the major capital items for the next 10 years is essential to maintaining a reserve fund forecast (RFF). Both must be presented at the annual general meeting for approval by the members and adjusted regularly in accordance with actual contributions and expenditure.

Operational expenses such as for fixing a leaking tap or a defective gate motor are paid for out of the administrative fund and are therefore excluded from reserve fund planning.

There is a statutory minimum annual contribution to the reserve fund, depending on the proportionality between the reserve fund balance and the adminstrative fund contributions.

 

Trustees with some technical and accounting knowledge - and time in abundance - are qualified to compile the MRRP and RFF, however, it is strongly recommended that these tasks be assigned to an independent and unbiased service provider to avoid the conflicts of interest that would typically arise.

HOW WE CAN HELP

For an unbeatable fee, Mirfin will compile a detailed report which includes a life-cycle cost analysis, a 10-year forecast of maintenance, repair and replacement costs, as well as a corresponding reserve fund forecast and contribution schedule. This service is based on a light inspection of the common property and fully complies with the requirements of the prescribed management rules of the STSMA.

 

A replacement cost valuation for insurance purposes is available in conjunction with the MRRP at a discount of 25% off the standard valuation fee.

 

Additionally, Mirfin offers an annual subscription for bodies corporate to make unlimited online adjustments to the MRRP and RFP.

 

Note: For a full-scale building audit which reveals structural defects, rising damp, exposed asbestos, roofing and guttering problems, plumbing and electrical issues and the existence and damage of termites and borers, the services of a specialist contractor are essential.

 

Download Mirfin's maintenance, repair and replacement plan brochure.

WHAT IS THE COST?

The cost depends on the location, use and size of a community scheme, measured by the number of registered sections. Click here for an instant quotation.

BODY CORPORATE INSURANCE

Trustees have a fiduciary duty to manage the insurance of their body corporate and ensure that it is sufficiently covered. The Management Rules prescribed in terms of section 10(2)(a) of the Sectional Title Schemes Management Act No. 8 of 2011 require that:

 

  • Insurance policies “must specify a replacement value for each unit and exclusive use area, excluding the member’s interest in the land included in the scheme (…)” (rule no. 23.1.b);
  • Insurance policies “must restrict the application of any “average” clause to individual units and exclusive use areas, so that no such clause applies to the buildings as a whole” (rule no. 23.1.c);
  • “a body corporate must obtain a replacement valuation of all buildings and improvements that it must insure at least every three years and present such replacement valuation to the annual general meeting” (rule no. 23.3).
  • “a body corporate must prepare for each annual general meeting schedules showing estimates of -
  1. the replacement value of the buildings and all improvements to the common property; and
  2. the replacement value of each unit, excluding the member's interest in the land included in the scheme, the total of such values of all units being equal to the value referred to in sub-rule 4(a)” (rule no. 23.4).

 

Download Mirfin's Sectional Title Insurance Valuations brochure.

Sectional Title Schemes Management Regulations

SECTIONAL TITLE INSURANCE VALUATIONS

When budgeting for a replacement cost valuation, trustees must ensure that the valuer:

 

  • is certified and registered
  • has specialised sectional title knowledge
  • carries adequate Professional Indemnity cover.

 

Mirfin meets all these requirements as part of our service. Additionally, our valuations include a quantified replacement cost calculation and a detailed Schedule of Replacement Values for every owned section and its undivided share in the common property. This comprehensive service allows us to assist trustees and managing agents in presenting the legally required documentation at the Annual General Meeting and enables insurers to confidently waive the “average“ clause from the policy.

 

All our insurance valuations include a basic survey of potential insurance risks and maintenance issues with photographs of the property and its improvements.

 

Download Mirfin's Sectional Title Insurance Valuations brochure.

SECTIONAL TITLE VALUATION PROCEDURE

In determining the replacement cost of a sectional title scheme, the valuer assesses the common property items and the standard units as completed by the developer. This does not take into account any value-added improvements or additions (upgrades) made by individual owners.

 

For that reason, it is not necessary for the valuer to gain access to more than one or two standard units as most of the required information will be obtained from the sectional title plans.

VALUATION OF UNIT UPGRADES

In the context of buildings insurance, an upgrade constitutes an extension, addition or improvement which results in an increase of the unit’s size or quality standard and hence its replacement value. Each unit owner is responsible to report the replacement cost of any upgrades to their units that they wish to be insured to the trustees. This will be for their own account (STSM rule no. 23.2.a).

 

In case individual owners are unable to estimate the added value of upgrades to their units, Mirfin will assist with a close-up inspection of such units at an additional fee. Should this service be required it must be communicated to us in advance to ensure that access is warranted when our valuer is on site.

 

IMPORTANT:

  • Unit upgrades that are not reflected in the sectional title plans are considered illegal and therefore possibly uninsurable.
  • A standard unit renovation does not represent an upgrade if no increase in replacement value has been achieved.
VALUATION UPDATE

Valuation updates, also known as “desktop valuations”, are available at a discounted fee. This only applies in cases where the previous valuation is not older than 36 months and assuming no structures or improvements have been altered, added or removed since the previous site inspection by Mirfin.

 

This service is available only for insurance valuations and is not covered by our professional indemnity insurance.

BUILDING COST ESCALATION REPORT

When an insurance policy is due for renewal, the insured sum is typically increased by 10 or 15% per annum. This may ensure that the body corporate is on the safe side initially but compounding these static escalation rates could cause it to be overinsured by 20% after three years and 60% after six years.

 

Our building cost escalation report is more affordable than a valuation update and it reflects the national average increase in building costs for the past, current and upcoming year. This offers better guidance on adjusting the sum insured in accordance with the actual development of building costs.

 

This service is, however, not covered by our professional indemnity insurance and sectional title legislation requires that a physical valuation is performed at least every three years.

BUILDINGS INSURANCE

Estimating an adequate sum for insuring a building calls for a professional replacement cost valuation. This makes provision for all costs associated with reconstruction in the event of total loss or damage, such as demolition, rubble removal, professional services, building costs and additional building services, as well as the inflation of costs from policy inception.

Most buildings are incorrectly insured for a multitude of reasons:

 

  • A popular misconception is that insuring for the property’s purchase price or current market value will cover the owner. However, in the event of total loss or even partial damage to the property this may not suffice to replace the lost property when you include the prevailing building costs.

 

  • A popular (and cheap) method of gauging the sum insured is to consult a builder, estate agent, managing agent or insurance broker - none of whom will be held accountable in the event of a claim.

 

  • On policy renewal, the insurance advisor may recommend a fixed escalation rate but will this may not hold true for a specific building in a specific location year after year.

 

Building cost calculator

AVERAGE CLAUSE

It is important to sufficiently cover a building because if a building is found to be underinsured the insurer will subject the claims to averaging. Applying the average clause means that the insurer is exercising its right to reduce the claim payout in proportion to the amount of underinsurance.

COST & BENEFITS

A professional valuation is more affordable than most people assume especially when the cost is shared between multiple owners, such as in a body corporate or homeowners’ association. It is money well spent when considering the many benefits:

 

  • Correct insurance cover – pay the right insurance premium
  • Full claim recovery – no averaging necessary by the insurer
  • Less hassle – there are no disputes with a professional valuation in hand
  • No ‘average’ clause - negotiate with the insurer to delete the ‘average’ clause from the policy
  • Pass on the responsibility – let the valuer determine the sum insured
  • Long-term affordability – periodical valuation updates cost only a fraction of the initial fee
POST-LOSS VALUATIONS

A post-loss property valuation can assist in resolving disputes between the insurer and the insured at claim stage.

VALUATION UPDATE

Valuation updates, also known as “desktop valuations”, are available at a discounted fee. This only applies in cases where the previous valuation is not older than 36 months and assuming no structures or improvements have been altered, added or removed since the previous site inspection by Mirfin.

 

This service is available only for insurance valuations and is not covered by our professional indemnity insurance.

BUILDING COST ESCALATION REPORT

When an insurance policy is due for renewal, the insured sum is typically increased by 10 or 15% per annum. This may ensure that the body corporate is on the safe side initially but compounding these static escalation rates could cause it to be overinsured by 20% after three years and 60% after six years.

 

Our building cost escalation report is more affordable than a valuation update and it reflects the national average increase in building costs for the past, current and upcoming year. This offers better guidance on adjusting the sum insured in accordance with the actual development of building costs.

 

This service is, however, not covered by our professional indemnity insurance and sectional title legislation requires that a physical valuation is performed at least every three years.

CONTENTS INSURANCE

Moveable assets, i.e. not permanently fixed to a wall, floor or ceiling, are regarded as contents and need to be insured under a separate policy from the building they’re housed in. Built-in assets such as carpets, ovens, air conditioners etc. are considered fixed assets and are covered by the buildings policy. It is important that buildings and contents are insured for their full replacement value at all times.

 

A Mirfin asset registry serves as proof of ownership in the event of a claim and will ensure the insurer does not subject your claim to averaging.

 

A contents valuation is also practical for companies or auditors compiling accurate financial reports regarding asset utilisation, asset depreciation and maintenance. It can also play a major role in determining a company’s market value.

CONTENTS SURVEY PROCEDURE
  • 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, will not be covered by your insurer.
  • Your jewellery must always be handled exclusively by yourself.
  • We will assess your daily-use items such as clothing, bed linen, crockery and cutlery by applying an average percentage, please point out any high-value items in this respect to the surveyor.
  • As we respect your privacy the surveyor will not open any cupboards or drawers or unpack any containers.
  • The surveyor will ask you 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 your written consent.
  • Once the survey is completed you will be asked to rate our service.
  • To ensure the valuation of your contents is accurate, we may consult with you again after the survey to agree on a value for unique items for which we were unable to source prices.
MARKET PRICE VALUATIONS

A market price valuation is practical in the following instances:

 

  • Making an informed marketing, buying or rental decision
  • 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
  • Tax declarations
  • Establishing an auction reserve price
  • Preparing a corporate take-over or merger
  • Winding up an insolvency
CONTESTING A MUNICIPAL VALUATION

The mass appraisal techniques used by the General Valuation Roll leave ample room for error. However, the Municipal Property Rates Act (MPRA) does make provision for errors to be corrected through the Supplementary Roll. Most property owners only become aware of their updated valuations once they receive their first new rates invoice.

 

If you believe the municipal valuer has over-valued your property, you should contest this and - if justified - the municipal valuer will amend it.

 

If an objection is not lodged during the advertised objection period there is very little prospect of having the municipal valuation amended, except in special circumstances.

 

IMPORTANT: Do not forego your right to object to an incorrect valuation by missing CoJ’s deadline of 6 April 2018.

 

Get an independent and objective market price valuation in support of your objection.

COJ GENERAL VALUATIONS ROLL 2018 (Courtesy of City of Johannesburg)
INTRODUCTION

Municipal property rates is a legislative requirement that requires every municipality like the City of Johannesburg to adopt a Rates Policy annually. This includes governing the property rating process by defining the different categories of property as well as specific categories of property ownership that may qualify for rates rebates and exemptions. To fulfil this legislative requirement, properties need to be rated. The levying of property rates starts with the valuation process. Property valuation data is compiled in a general valuation roll document, which consists of property information of all rateable properties, inclusive of the market value and property category.

The City of Johannesburg will release the General Valuation Roll on 20 February 2018.

 

 

GENERAL VALUATION

A general valuation roll is determined and produced every four years, as stipulated within the Municipal Property Rates Act (MPRA) No 6 of 2004. The City of Johannesburg was granted a 12-month extension by MEC for local Government. The City's current valuation roll was implemented with effect from 1 July 2013. As a result of the extension of 1 year granted by the MEC for Local Government, the City will implement its next general valuation roll on 1 July 2018.

 

General Valuation (GV) 2013 was implemented on 1 July 2013, it forms the assessment rates base for the City of Johannesburg during its period of validity. GV 2013 consisted of 812 000 registered properties within the City of Johannesburg when the GV was implemented. The GV was compiled with the property market as at 2 July 2012 (valuation date). The GV 2013 will be valid until 30 June 2018. The next GV 2018 will be implemented as at 1 July 2018 with the valuation date being 1 July 2017.

 

Section 78 of the Municipal Property Rates Act 6 of 2004 as amended requires that the valuation roll be updated on a regular basis when changes take place to property. These valuations are called supplementary valuations and must be compiled and published at least once a year in a Supplementary Valuation Roll.

 

Supplementary valuations are done, amongst others, for the following reasons:

  • Properties omitted from the Valuation Roll
  • included in a municipality after the last general valuation
  • subdivided or consolidated after the last general valuation
  • New property registrations
  • Subsequent property developments or amendments
  • Properties that were incorrectly valued during the last General Valuation Roll
  • Where property categories have changed

 

The city has done more than 60 000 supplementary valuations since the implementation of GV 2013. The number of properties in the GV as at 23 July is 872 223.

 

Here is the 2018 General Valuation Roll for the City of Johannesburg (this link will only be active from 20 February 2018):  https://coj2018.evaluations.co.za/

TARIFF CATEGORIES

The City of Johannesburg allocates different categories of properties to the properties in the valuation roll. It is important to understand your property category because property rates are levied in accordance with the property category. The zoning of the property determines the category that will be applied to the property. For example, if a property is zoned “Residential” the category will be “Residential” and the residential property rates tariff will be applied to that property.

 

  1. Business and commercial
  2. Sectional title Business
  3. Sectional title residential
  4. Sectional title other
  5. Residential property
  6. Residential with consent use
  7. Municipal
  8. State
  9. Farming
  10. Public service infrastructure
  11. Agricultural business
  12. Agricultural residential
  13. Agricultural other
  14. Vacant land
  15. Mining
  16. Education
  17. Religious
  18. Public Service Infrastructure-private
  19. Private open space
  20. Public benefit
  21. Multipurpose residential
  22. Multipurpose business
  23. Unauthorised use
OBJECTION PROCESS

The owners of properties within the boundaries of the City of Johannesburg or any other person have the right to inspect the general valuation roll and object to the entry in the roll where the owner or any other person disagrees with the entry in the roll or against an omission from the roll.

 

Date of Valuation: 1 July 2017

Date of Implementation: 1 July 2018.

Please make sure you complete the official objection form and not a Query form.

Get a professional market price valuation in support of your objection.

CONTENTS OF GENERAL VALUATION ROLL

(Local Government Municipal Property Rates Act 6 of 2004, as amended (Section 48))

The Local Government Municipal Rates Act No 6 of 2004 stipulates that:

A General Valuation Roll must list all rateable properties in the municipality. The valuation roll must reflect the following particulars in respect of each property as at the date of valuation to the extent that such information is reasonably determinable and all these entries can be objected against:

a) The registered or other description of the property;

b) The category determined in terms of section 8 in which the property falls;

c) The physical address of the property;

d) The extent of the property;

e) The market value of the property, if the property was valued;

f) The name of the owner; and

g) Any other prescribed particulars.

PUBLIC NOTICES OF GENERAL VALUATION ROLL

(Local Government Municipal Property Rates Act (Section 49))

The Valuation Roll must be printed, bound, certified and handed over to the Municipal Manager by the Municipal Valuer 5 Months before implementation date of the roll.

The Municipal Manager must within 21 days of receipt of the Roll publish in Provincial Gazette once a week for two consecutive weeks that the Roll is open for inspection and in the media.

The valuation roll must be opened for inspection for a minimum of 30 days. (Prescribed by Section 49 of the MPRA).

Section 49 Notices inviting the owners to inspect the valuation roll and object to the entry in the roll where the owner disagrees with the entry or against an omission from the roll must be sent by ordinary mail. Together with an extract of the valuation roll pertaining to that owner's property.

The general valuation roll must be published on the official website of the City for the duration of the inspection period.

INSPECTION OF AND OBJECTIONS TO GENERAL VALUATION ROLL

(Local Government Municipal Property rates Act (Section 50))

  • Any person may inspect the Valuation Roll within the inspection period and lodge an objection against any of the entries that appears in the Valuation Roll.
  • Reason for the objection, along with evidence to support the objection must be included.
  • A municipal council may also lodge an objection with the municipal manager against any entry that appears in the roll.
  • It is important to note the objection, must be in relation to a specific individual property and not against the Valuation Roll as such.
  • The Municipal manager must after the end of the inspection period submit all objections to the Municipal Valuer.
  • The lodging of objections does not defer the liability for payment of rates and taxes.

 

The Valuation Roll will be available for inspection by members of the public at the following 12 stations around Joburg, from 20 February until 6 April 2018:

  • MIDRAND - Midrand Customer Service Centre, 300 15th Road
  • FLORIDA PARK - Roodepoort Civic Centre 1st Floor, 100 Christiaan De Wet Road
  • ORLANDO EAST, SOWETO - Orlando East Customer Service Centre, 1425A Sofasonke Street
  • PROTEA NORTH - Protea North Customer Service Centre, 229/49 Kunene Street
  • RANDBURG - Randburg Civic Customer Service Centre, Cnr Braamfischer Drive and Jan Smuts Avenue
  • JABULANI - Jabulani Customer Service Centre, 1 Koma Road
  • BRAAMFONTEIN - Thuso House Customer Service Centre, 61 Jorrisen Street
  • BOOYSENS - City Power, Blue Square Boardroom, 40 Heronmere Street off Booysens Road,
  • SANDTON - Sandton Customer Service Centre, 137 Daisy Street
  • ENNERDALE EXTENSION 9 - Ennerdale Customer Service Centre, Cnr. Katz and Smith Walk Road
  • LENASIA - Lenasia Civic Centre, Cnr. Rose and Elland Road
  • ELDORADO PARK EXTENSION 5 - Eldorado Park Customer Service Centre, 4046 Link Crescent Avenue

 

No e-mail or electronic fax correspondence will be considered for objections.

Objectors are advised to have their Section 49 Notice handy when objecting at the above-mentioned venues. Alternatively, residents may log onto the City’s website to lodge an online objection or download objection forms.

 

Objections can be categorised as follows:

  • Residential
  • Properties other than Residential or Agricultural
  • Agricultural Holdings, or
  • Farms
PROCESSING OF OBJECTIONS

(Local Government Municipal Property Rates Act (Section 51))

  • The objections received by the public are checked, captured on the City's system and objection numbers are automatically allocated.
  • A confirmation letter is produced and serves as proof that the objector submitted an objection against a specific entry.
  • The municipal valuer must consider the objections and make a decision in terms of Section 51 and adjust the Valuation Roll. The number of objections and its complexity will determine the time frames.
COMPULSORY REVIEW OF DECISIONS OF THE MUNICIPAL VALUER

(Local Government Municipal Property Rates Act (Section 52))

  • In the event that the Municipal Valuer adjusts the value by more than 10% upwards or downwards the objection will be submitted to the Valuation Appeal Board for a compulsory review.
  • The appeal board must review the decision and confirm, revoke or amend the decision.
  • When the appeal board amends or revokes the value, the chairperson and the valuer must ensure that the valuation roll is adjusted in accordance.
  • Any adjustments or additions made to General Valuation Roll in terms of the above must take effect on the effective date of the General Valuation Roll.
  • Any adjustment in the valuation of the property that affects the rates payable the value on the account must be adjusted accordingly.
NOTIFICATION OF OUTCOME OF OBJECTION

(Local Government Municipal Property Rates Act (Section 53))

  • The municipal valuer must in writing inform the objector what the valuers' decision is and whether section 52 applies (change by more than 10%).
  • The objector and owner will be notified of the Municipal Valuers' decision.
  • The objector may apply in writing for written reasons of the municipal valuer’s decision.
  • Written reasons must be applied for within 30 days after the date of the notification at a fee as proclaimed in the Local Government Gazette, such fee must be paid in advance.
  • The Municipal Valuer must provide written reasons within 30 days of application.
  • If the Client is still not happy, an appeal must be lodged within 21 days of receiving the reasons.
APPEAL PROCESS

RIGHT OF APPEAL

(Local Government Municipal Property Rates Act (Section 54))

An appeal to an appeal board against a decision of a Municipal Valuer in terms of Section 51 may be lodged in the prescribed manner with the Municipal Manager concerned by:

  1. A person who has lodged an objection in terms of section 50 (1) (c) and who is not satisfied with the decision of the municipal valuer;
  2. An owner of a property who is affected by such a decision, if the objector was not the owner; or
  3. The Council of the municipality concerned, if the municipality's interests are affected.

 

The Chairperson of the Appeal Board must inform all parties concerned of the date and venue where the appeal hearing will take place. The Chairperson of the Appeal Board and the Valuer of the Municipality must ensure that the valuation roll is adjusted or added to in accordance with the decision of the Appeal Board.

 

The Valuation Appeal Board is an independent body appointed by the MEC for Local Government under Section 56 of the Municipal Property Rates Act. The Board consists out of a legal representative (Advocate) and two professional valuers, registered at the SA Council for Professional Valuers.

FAQs
What is a General Valuation Roll?
  • A General Valuation Roll (GV) is a legal document that consists of property information of all rateable properties within the boundaries of a municipality. It is produced according to The Municipal Property Rates Act 6 of 2004 (MPRA) as amended.
  • As at 1 July 2017 there were just over 879 000 registered properties in Johannesburg.
What is the purpose of a General Valuation Roll?
  • The General Valuation Roll assigns a value and a category to all properties in a municipality, with the objective of generating rates on an equitable basis.
  • The rules on categorization and tariffs will be in accordance with the Rates Policy.

 

 

Why a new Valuation Roll?
  • The last COJ valuation roll was implemented with effect from 1 July 2013, and will terminate on 30 June 2018.
  • By law the City of Johannesburg needs to review its valuation roll every four years.
  • The MEC for Local Government has granted the City of Johannesburg a 12 months extension; therefore the new General Valuation must be implemented on 1 July 2018.
When can I inspect the new General Valuation Roll?

You can inspect the new General Valuations roll on the City of Johannesburg website or at one of the 12 centres listed below.

  • The 2018 valuation roll will be signed by the Municipal Valuer and submitted to the Municipal Manager on 30 January 2018.
  • The Municipality will thereafter publish the Valuation Roll and open it for inspection at the municipal offices and on its website
  • The Valuation Roll will be open at 12 stations and this will happen from 20 February 2018 to 6 April 2018.
  • The roll will be made available for public inspection for a period of 45 days (MPRA only requires 30 days)
  • In this period property owners will be able to object to their values or any other property value that is deemed to be incorrect.
  • Objections can be lodged at the 12 centres (below) or online on the CoJ website
  • All homeowners will be notified of the new value of their property in writing and be invited to inspect the roll and lodge an objection if they wish to do so.
  • Any person including the CoJ may lodge an objection.

 

*The 12 centres where the General Valuation Roll can be inspected and objections can be lodged:

  • MIDRAND - Midrand Customer Service Centre, 300 15th Road
  • FLORIDA PARK - Roodepoort Civic Centre 1st Floor, 100 Christiaan De Wet Road
  • ORLANDO EAST, SOWETO - Orlando East Customer Service Centre, 1425A Sofasonke Street
  • PROTEA NORTH - Protea North Customer Service Centre, 229/49 Kunene Street
  • RANDBURG - Randburg Civic Customer Service Centre, Cnr Braamfischer Drive and Jan Smuts Avenue
  • JABULANI - Jabulani Customer Service Centre, 1 Koma Road
  • BRAAMFONTEIN - Thuso House Customer Service Centre, 61 Jorrisen Street
  • BOOYSENS - City Power, Blue Square Boardroom, 40 Heronmere Street off Booysens Road,
  • SANDTON - Sandton Customer Service Centre, 137 Daisy Street
  • ENNERDALE EXTENSION 9 - Ennerdale Customer Service Centre, Cnr. Katz and Smith Walk Road
  • LENASIA - Lenasia Civic Centre, Cnr. Rose and Elland Road
  • ELDORADO PARK EXTENSION 5 - Eldorado Park Customer Service Centre, 4046 Link Crescent Avenue
What is the Implementation Process for the General Valuation Roll
  1. Compile Valuation Roll
  2. 30 Jan 2018: Submit GV to Municipal Manager
  3. Publish in Gazette and newspapers
  4. 20 Feb-6 April 2018: Objection period 45 days:
  5. Receive objections
  6. Valuers to review objections
  7. 1 July 2018: Implementation of GV 18 (start rating)
  8. Notification of objection outcomes
  9. Receive appeals from objectors
  10. Appeal Board attending to Appeals
  11. Appellants notified of Appeal Board outcome
How does the City levy property rates?
  • The levying of property rates is done through the establishment of a valuation process. The City begins the process by compiling a general valuation roll document, this consists of property information of all rateable properties, inclusive of the market value and property category.
  • Different categories are allocated to properties, it is important to understand that these property categories affect the rates being levied. A general valuation roll is produced and published every four years, as stipulated within the Municipal Property Rates Act No 6 of 2004 as amended. The City's current valuation roll was implemented with effect from 1 July 2013. The City of Johannesburg was granted a 12-month extension by MEC for local Government for GV 2013. As a result of the 1-year extension the City will implement its next general valuation roll on 1 July 2018.
How are my property rates used?
  • Paying your rates enables the municipality to -
    • provide public safety
    • provide extended health care
    • build libraries
    • provide sports and recreation facilities
    • collect refuse
    • install and maintaining storm water pipes
    • fix potholes
    • install and maintain street lights

 

What is the date of valuation and why is it important?
  • Section 31 of the MPRA states that for the purposes of a general valuation, a municipality must determine a date that may not be more than 12 months before the start of the financial year in which the valuation roll is to be first implemented. The general valuation must reflect the market value of properties determined in accordance with market conditions which applied as at the date of valuation.
  • The date of valuation refers to the date at which property values are determined and is fixed for the purpose of the general valuation roll. In terms of the 2013 General Valuation roll, 2nd July 2012 is the valuation date. It is also the date that will be used for all future calculations for the purposes of supplementary valuations up until a new general valuation roll replaces the 2013 general valuation roll.
  • The date of valuation for GV 2018 is 1 July 2017. That means the market conditions as at 1 July 2017 were taken into account to determine the market values of the properties. It is also the date that will be used for all future calculations for the purposes of supplementary valuations up until a new General Valuation roll replaces the GV2018.
  • The implementation date for the 2018 General Valuation Roll is 1 July 2018 and coincides with the date of the municipality’s new financial year.
What is the basis of valuation used by the City?
  • The basis of valuation is market value, this is the most probable price that a property would realise on the date of valuation, if sold on the open market by a willing seller to a willing buyer. (MPRA Section 46).
Was my property physically inspected by a valuer?
  • In terms of Section 45 of the MPRA, the physical inspection of properties to be valued is optional and other valuation techniques may be used such as:-
    • Aerial photography; and
    • Computer assisted mass appraisal systems or techniques
  • As this is a mass valuation, the Municipal Valuer uses a computer aided mass appraisal (CAMA) system to determine the values of all properties.
  • The CAMA system is based on statistical analysis and geographical information systems (GIS), and therefore depends on reliable and accurate data.
  • Data collection refers to the attributes of the property collected for the valuation process.
  • This process is divided into two sections : Residential and Non-residential.
  • Residential data collected is livable areas, outbuildings and other buildings (granny flat) as well as other attributes of the property such as swimming pool, location, security etc.
  • Obtaining access to all properties is not possible, and as such, the Municipal Valuer makes use of advanced technology that allows the collection of data. This includes the use of building plans and oblique imagery, which allows the Valuers to see the properties from all angles, and be able to measure the extents and heights of the buildings, as well as other information relating to quality, condition and other improvements. This method is acceptable in terms of the MPRA.
  • In cases where the aerial photography and other imagery is not useable, usually in the cases where properties have a lot of foliage, or high security walls, then physical inspection of the site is undertaken. The data collection process is independently reviewed for quality assurance purposes to ensure the data collectors are consistent in their approach and the data they record is correct for the subject property.
  • For non-residential properties, field visits are undertaken to obtain data such as the property use, rentals and financial records of businesses.
How does the City establish the property market value?
  • In order to establish your property value, sales are analysed in your area. These sales provide the basis for the valuation. There are several types of property categories in the municipality, each category is valued on a different basis, although they all relate to the market value. For example, residential property (including sectional titles) is valued on a comparable sales method. Most commercial properties (including retail, offices, warehousing) are valued on the income capitalization method, whilst institutional properties such as schools, hospitals and clinics are valued on the cost method. When valuing the properties, the Municipal Valuer establishes the market conditions, as at the date of valuation and this is based on recent sales and relevant market information and activity in the various areas. Therefore this will take into consideration areas where values have declined, increased or remained stagnant due to the current state of the economy.
What is the effective date of the implementation?
  • The effective date of the valuation roll is a date the roll is implemented. This usually coincides with the date of the new financial year of the City. The customer will be levied rates according to the new general valuation roll from the implementation date. The effective date for GV 2018 is 1 July 2018.
What happens to properties that are built after the compilation of the general valuation roll?
  • The City is compelled by legislation to reflect all changes to properties in a Supplementary Valuation Roll.
What is a supplementary valuation roll?
  • A Supplementary Valuation roll is compiled to update the "Main" Valuation Roll”. The aim is to correct or update errors, omissions, subdivisions, consolidations, rezoning, township development, building alterations, the construction of new buildings and any other exceptional reason that may change or affect the value of a property, subsequent to the compilation and publication of the "Main" Valuation Roll”.
  • Supplementary valuations are performed during each financial year, according to the market conditions as at “date of valuation.”
What do I do if I disagree with my property valuation?
  • The legislation makes ample provision for any person to object to an entry in a valuation roll provided that such objection takes place in the prescribed manner and within the stipulated objection period.
  • Specific details about the objection dates and venues will be displayed in the individual notices to owners regarding their property valuations (Sect 49 notices).
  • Appoint an independent valuer to verify your property value.
  • All objections received within the specified period will be considered by the Municipal Valuer and Assistant Municipal Valuers.
  • No objections will be accepted after the closure of the official objection period.
  • Following the objection period the valuers review the objections received and notify the objector and/or owner of the outcome.
  • Dissatisfaction with the amount of rates payable does not constitute an objection.
How do I object?
  • Complete the relevant form and hand-deliver it to your municipality (facsimile or e-mail objections are NOT accepted):

FORM A: Residential

FORM B: Properties other than Residential or Agricultural

FORM C: Agricultural holdings and farms​​​

Where can I submit my objection?
  • Objections can be submitted online at www.joburg.co.za or delivered by hand to one of the 12 centres (below) indicated.
  • Submissions by e-mail or facsimile will NOT be accepted.
  • Late objections will NOT be accepted.
  • The closing date for objections is 15:00 on 6 April 2018.

 

There are 12 centres where objections can be delivered by 6 April 2018 - these are:

  • MIDRAND - Midrand Customer Service Centre, 300 15th Road
  • FLORIDA PARK - Roodepoort Civic Centre 1st Floor, 100 Christiaan De Wet Road
  • ORLANDO EAST, SOWETO - Orlando East Customer Service Centre, 1425A Sofasonke Street
  • PROTEA NORTH - Protea North Customer Service Centre, 229/49 Kunene Street
  • RANDBURG - Randburg Civic Customer Service Centre, Cnr Braamfischer Drive and Jan Smuts Avenue
  • JABULANI - Jabulani Customer Service Centre, 1 Koma Road
  • BRAAMFONTEIN - Thuso House Customer Service Centre, 61 Jorrisen Street
  • BOOYSENS - City Power, Blue Square Boardroom, 40 Heronmere Street off Booysens Road,
  • SANDTON - Sandton Customer Service Centre, 137 Daisy Street
  • ENNERDALE EXTENSION 9 - Ennerdale Customer Service Centre, Cnr. Katz and Smith Walk Road
  • LENASIA - Lenasia Civic Centre, Cnr. Rose and Elland Road
  • ELDORADO PARK EXTENSION 5 - Eldorado Park Customer Service Centre, 4046 Link Crescent Avenue
What can't I object to?
  • Legislation allows you to object to any entry or omission from the General Valuation Roll but not the roll in totality.
  • A property owner can not object to the property rates.
  • Dissatisfaction with the amount of rates does not constitute an objection.

 

How long will an objection take to be resolved?
  • The number of objection received will have an effect on the process period. The Municipal Valuer will review the objections taking in consideration the information that was provided on the objection form.
  • The outcome of the Municipal Valuer decisions will be mailed to objectors in phases as per completion.
What do I do if my objection is dismissed?
  • If the owner is not happy with the outcome of the Municipal Valuer's decision (objection outcome value), an appeal may be lodged.
  • Appoint an independent valuer in support of your appeal.
  • The appeal will be heard by an Appeal Board consisting of a chairperson and a minimum of two assistants.
  • The appellant will be notified of the decision of the Appeal Board by the secretary to the Appeal Board.
Do I need a Lawyer to represent me at the Appeal Board?
  • The Appeal Board is not a court of law, and you do not need to bring a lawyer, unless you wish to do so. You may also bring any other expert to assist you during your appeal hearing. However this will be for your own account. (Appoint an independent valuer in support of your appeal.)
  • The Valuation Appeal Board will consist of a Chairperson with legal qualifications and sufficient experience in the administration of justice. The remaining members will be made up of not fewer than two and not more than four other members with sufficient knowledge of, or experience in, the valuation of property. At least one must be a professional valuer registered in terms of the Property Valuers Profession Act 47 of 2000.
  • The Appeal Board is an independent Body appointed by the MEC Local Government.
To what extent is the Municipal decision final?
  • Section 52(2) of the MPRA states that if the Municipal Valuer changes the value of a property that was objected to by more than 10% upwards or downwards the Appeal Board must review the objection, confirm, amend or revoke the decision of the Municipal Valuer.
I was not able to object, what can I do now as the objection process is closed?
  • If you have not objected to the value of the property before, you can lodge a query requesting the Valuation directorate to revisit your property valuation. Your query must be accompanied by supporting evidence as to why you consider your value as incorrect. The query will be investigated and you will be notified of any changes to the value in terms of Section 78 of the MPRA.
  • You may request for a section 78 review to a Supplementary Valuation. You will receive a section 78 review notice, with the details of the review period (duration, time of closing). Should you not be satisfied with the changes that were made to your property, you may lodge an objection when the relevant supplementary is open for objections.
Why does the municipal market value differ from the estate agents’ value?
  • The date of valuation refers to the date at which property values are determined and is fixed for the purpose and duration of the General Valuation Roll. Estate agents determine the current value of a property which might differ significantly from the market conditions as at date of the general valuation.
PROPERTY RISK SURVEY

Mirfin provides a comprehensive survey covering all risk aspects of a property. These include the state of maintenance, security, electrical compliance, fire protection, lightning protection, gas installations and natural hazards (e.g. flooding by nearby bodies of water, veld fires, earthquakes etc.). Our risk report also includes recommendations on preventative measures to be implemented, such as the correct fire-fighting equipment to be used and how to minimise the loss of personal assets and property should disaster strike.

 

Benefits of a property risk assessment:

 

  • Measuring the vulnerability of your assets and assessing the risk exposure
  • Increasing awareness of the safety and security of your family, property, employees and customers
  • Protection against future hazards and unforeseen losses or injuries
  • Helping to avoid unnecessary maintenance costs and expensive law suits
  • Enabling the insurer to better calculate the risk
  • Enabling you to negotiate lower premiums with your insurer
  • Enjoying good standing with your insurer

 

 

Risk survey procedure

 

Risk surveys are conducted discreetly and will not intrude on your daily operations. We work hard to conclude each survey in the minimum amount of time required. We will ask you to produce certain documentation such as certificates for electrical compliance, gas installations and safety implementations.

THATCH RISK SURVEY

Our specialised thatch risk survey is an extension of the property risk survey. This survey assesses the type, construction, age, condition and size of a thatched roof. It also reports on the lightning density in the specific area and the installation of lightning conductors to the regulatory standards. We look at the type of fireplace and chimney construction, the chimney's height above the roofline and safety implementations such as spark arrestors, chimney insulation, fire retardants, flashing membranes and regularly serviced fire-fighting equipment. A check for electrical and other identifiable hazards, as well as the compliance of electrical and gas installations with safety standards, is imperative.

VEHICLE RISK SURVEY

Vehicle inspections are conducted on behalf of the insurance carrier to determine the insurability of passenger vehicles, commercial vehicles, agricultural vehicles, vintage vehicles and non-motor vehicles such as caravans, trailers and boats. The inspection report will indicate the brand, model, year of manufacture, the owners' and additional users' particulars, registration and serial numbers, license expiry date, vehicle usage, day and night parking, odometer reading, physical description, apparent condition of exterior and interior, equipment and accessories, security features, tyre tread etc.

GIS RISK REPORT

The GIS Risk Report is a compilation of bird’s-eye views, various GIS maps (Geographic Information Systems) and local statistics on the occurrence of lightning strikes, fires, flooding, earthquakes, crime etc.  It offers a low-cost automated risk analysis of a property and its environment and augments our insurance valuation report.

 

Due to the inherent limitation of information derived from aerial images and automated systems, the GIS Risk Report cannot offer the same accuracy as a comprehensive risk survey which is based on a physical on-site assessment,

MAINTENANCE, REPAIR AND REPLACEMENT PLAN

LONG-TERM PLANNING

If you have money invested in a community scheme, you will want to ensure that your investment is protected at all times through proper maintenance and insurance of the section for which you are personally responsible, as well as for your undivided share in the common property for which the body corporate is responsible.

 

Most community schemes initially fall short of their projected expenditure requirements and Prescribed Management Rule no. 22 of the Sectional Title Schemes Management Act aims to put these schemes on a prosperous path with continuously improving financials and to let the raising of special levies become a thing of the past. Subsequently, buildings will be better maintained and the allocation of the financial burden will be equally distributed between existing owners and new buyers, not to mention the favourable effect a well-maintained scheme with sound financials will have on prospective buyers (i.e. investors) and hence the market value of all units in such a scheme.

 

Planning ahead for regular maintenance allows for time and finances to be managed more effectively and, if carried out on a regular and orderly basis, the maintenance tasks become less onerous and the costs can be spread more evenly over time. Also, preventative maintenance tends to be much more cost-effective in the long term than having to do emergency repairs.

 

Download Mirfin's maintenance, repair and replacement plan brochure.

WHAT DOES THE LAW PRESCRIBE?

The Sectional Title Schemes Management Act No. 8 of 2011 (STSMA) aims to improve the management of bodies corporate and, as such, the shareholder value for individual members. Therefore, it is prescribed that -

 

  • A body corporate or trustees must prepare a written maintenance, repair and replacement plan for the common property, setting out -

(a) the major capital items expected to require maintenance, repair and replacement within the next 10 years;

(b) the present condition or state of repair of those items;

(c) the time when those items or components of those items will need to be maintained, repaired or replaced;

(d) the estimated cost of the maintenance, repair and replacement of those items or components;

(e) the expected life of those items or components once maintained, repaired or replaced; and

(f) any other information the body corporate considers relevant.

(STMS Act. No. 8 of 2011, rule no. 22.1)

 

  • The reserve fund maintained in terms of section 3(1)(b) of the Act must be used for the implementation of the maintenance, repair and replacement plan of the body corporate referred to in rule 22.

(STMS Act. No. 8 of 2011, rule no. 24.2)

RESERVE FUND FORECAST

A maintenance, repair and replacement plan (MRRP) that covers the major capital items for the next 10 years is essential to maintaining a reserve fund forecast (RFF). Both must be presented at the annual general meeting for approval by the members and adjusted regularly in accordance with actual contributions and expenditure.

Operational expenses such as for fixing a leaking tap or a defective gate motor are paid for out of the administrative fund and are therefore excluded from reserve fund planning.

There is a statutory minimum annual contribution to the reserve fund, depending on the proportionality between the reserve fund balance and the adminstrative fund contributions.

 

Trustees with some technical and accounting knowledge - and time in abundance - are qualified to compile the MRRP and RFF, however, it is strongly recommended that these tasks be assigned to an independent and unbiased service provider to avoid the conflicts of interest that would typically arise.

HOW WE CAN HELP

For an unbeatable fee, Mirfin will compile a detailed report which includes a life-cycle cost analysis, a 10-year forecast of maintenance, repair and replacement costs, as well as a corresponding reserve fund forecast and contribution schedule. This service is based on a light inspection of the common property and fully complies with the requirements of the prescribed management rules of the STSMA.

 

A replacement cost valuation for insurance purposes is available in conjunction with the MRRP at a discount of 25% off the standard valuation fee.

 

Additionally, Mirfin offers an annual subscription for bodies corporate to make unlimited online adjustments to the MRRP and RFP.

 

Note: For a full-scale building audit which reveals structural defects, rising damp, exposed asbestos, roofing and guttering problems, plumbing and electrical issues and the existence and damage of termites and borers, the services of a specialist contractor are essential.

 

Download Mirfin's maintenance, repair and replacement plan brochure.

WHAT IS THE COST?

The cost depends on the location, use and size of a community scheme, measured by the number of registered sections. Click here for an instant quotation.

BODY CORPORATE VALUATIONS

BODY CORPORATE INSURANCE

Trustees have a fiduciary duty to manage the insurance of their body corporate and ensure that it is sufficiently covered. The Management Rules prescribed in terms of section 10(2)(a) of the Sectional Title Schemes Management Act No. 8 of 2011 require that:

 

  • Insurance policies “must specify a replacement value for each unit and exclusive use area, excluding the member’s interest in the land included in the scheme (…)” (rule no. 23.1.b);
  • Insurance policies “must restrict the application of any “average” clause to individual units and exclusive use areas, so that no such clause applies to the buildings as a whole” (rule no. 23.1.c);
  • “a body corporate must obtain a replacement valuation of all buildings and improvements that it must insure at least every three years and present such replacement valuation to the annual general meeting” (rule no. 23.3).
  • “a body corporate must prepare for each annual general meeting schedules showing estimates of -
  1. the replacement value of the buildings and all improvements to the common property; and
  2. the replacement value of each unit, excluding the member's interest in the land included in the scheme, the total of such values of all units being equal to the value referred to in sub-rule 4(a)” (rule no. 23.4).

 

Download Mirfin's Sectional Title Insurance Valuations brochure.

Sectional Title Schemes Management Regulations

SECTIONAL TITLE INSURANCE VALUATIONS

When budgeting for a replacement cost valuation, trustees must ensure that the valuer:

 

  • is certified and registered
  • has specialised sectional title knowledge
  • carries adequate Professional Indemnity cover.

 

Mirfin meets all these requirements as part of our service. Additionally, our valuations include a quantified replacement cost calculation and a detailed Schedule of Replacement Values for every owned section and its undivided share in the common property. This comprehensive service allows us to assist trustees and managing agents in presenting the legally required documentation at the Annual General Meeting and enables insurers to confidently waive the “average“ clause from the policy.

 

All our insurance valuations include a basic survey of potential insurance risks and maintenance issues with photographs of the property and its improvements.

 

Download Mirfin's Sectional Title Insurance Valuations brochure.

SECTIONAL TITLE VALUATION PROCEDURE

In determining the replacement cost of a sectional title scheme, the valuer assesses the common property items and the standard units as completed by the developer. This does not take into account any value-added improvements or additions (upgrades) made by individual owners.

 

For that reason, it is not necessary for the valuer to gain access to more than one or two standard units as most of the required information will be obtained from the sectional title plans.

VALUATION OF UNIT UPGRADES

In the context of buildings insurance, an upgrade constitutes an extension, addition or improvement which results in an increase of the unit’s size or quality standard and hence its replacement value. Each unit owner is responsible to report the replacement cost of any upgrades to their units that they wish to be insured to the trustees. This will be for their own account (STSM rule no. 23.2.a).

 

In case individual owners are unable to estimate the added value of upgrades to their units, Mirfin will assist with a close-up inspection of such units at an additional fee. Should this service be required it must be communicated to us in advance to ensure that access is warranted when our valuer is on site.

 

IMPORTANT:

  • Unit upgrades that are not reflected in the sectional title plans are considered illegal and therefore possibly uninsurable.
  • A standard unit renovation does not represent an upgrade if no increase in replacement value has been achieved.
VALUATION UPDATE

Valuation updates, also known as “desktop valuations”, are available at a discounted fee. This only applies in cases where the previous valuation is not older than 36 months and assuming no structures or improvements have been altered, added or removed since the previous site inspection by Mirfin.

 

This service is available only for insurance valuations and is not covered by our professional indemnity insurance.

BUILDING COST ESCALATION REPORT

When an insurance policy is due for renewal, the insured sum is typically increased by 10 or 15% per annum. This may ensure that the body corporate is on the safe side initially but compounding these static escalation rates could cause it to be overinsured by 20% after three years and 60% after six years.

 

Our building cost escalation report is more affordable than a valuation update and it reflects the national average increase in building costs for the past, current and upcoming year. This offers better guidance on adjusting the sum insured in accordance with the actual development of building costs.

 

This service is, however, not covered by our professional indemnity insurance and sectional title legislation requires that a physical valuation is performed at least every three years.

BUILDING INSURANCE VALUATIONS

BUILDINGS INSURANCE

Estimating an adequate sum for insuring a building calls for a professional replacement cost valuation. This makes provision for all costs associated with reconstruction in the event of total loss or damage, such as demolition, rubble removal, professional services, building costs and additional building services, as well as the inflation of costs from policy inception.

Most buildings are incorrectly insured for a multitude of reasons:

 

  • A popular misconception is that insuring for the property’s purchase price or current market value will cover the owner. However, in the event of total loss or even partial damage to the property this may not suffice to replace the lost property when you include the prevailing building costs.

 

  • A popular (and cheap) method of gauging the sum insured is to consult a builder, estate agent, managing agent or insurance broker - none of whom will be held accountable in the event of a claim.

 

  • On policy renewal, the insurance advisor may recommend a fixed escalation rate but will this may not hold true for a specific building in a specific location year after year.

 

Building cost calculator

AVERAGE CLAUSE

It is important to sufficiently cover a building because if a building is found to be underinsured the insurer will subject the claims to averaging. Applying the average clause means that the insurer is exercising its right to reduce the claim payout in proportion to the amount of underinsurance.

COST & BENEFITS

A professional valuation is more affordable than most people assume especially when the cost is shared between multiple owners, such as in a body corporate or homeowners’ association. It is money well spent when considering the many benefits:

 

  • Correct insurance cover – pay the right insurance premium
  • Full claim recovery – no averaging necessary by the insurer
  • Less hassle – there are no disputes with a professional valuation in hand
  • No ‘average’ clause - negotiate with the insurer to delete the ‘average’ clause from the policy
  • Pass on the responsibility – let the valuer determine the sum insured
  • Long-term affordability – periodical valuation updates cost only a fraction of the initial fee
POST-LOSS VALUATIONS

A post-loss property valuation can assist in resolving disputes between the insurer and the insured at claim stage.

VALUATION UPDATE

Valuation updates, also known as “desktop valuations”, are available at a discounted fee. This only applies in cases where the previous valuation is not older than 36 months and assuming no structures or improvements have been altered, added or removed since the previous site inspection by Mirfin.

 

This service is available only for insurance valuations and is not covered by our professional indemnity insurance.

BUILDING COST ESCALATION REPORT

When an insurance policy is due for renewal, the insured sum is typically increased by 10 or 15% per annum. This may ensure that the body corporate is on the safe side initially but compounding these static escalation rates could cause it to be overinsured by 20% after three years and 60% after six years.

 

Our building cost escalation report is more affordable than a valuation update and it reflects the national average increase in building costs for the past, current and upcoming year. This offers better guidance on adjusting the sum insured in accordance with the actual development of building costs.

 

This service is, however, not covered by our professional indemnity insurance and sectional title legislation requires that a physical valuation is performed at least every three years.

CONTENT VALUATIONS

CONTENTS INSURANCE

Moveable assets, i.e. not permanently fixed to a wall, floor or ceiling, are regarded as contents and need to be insured under a separate policy from the building they’re housed in. Built-in assets such as carpets, ovens, air conditioners etc. are considered fixed assets and are covered by the buildings policy. It is important that buildings and contents are insured for their full replacement value at all times.

 

A Mirfin asset registry serves as proof of ownership in the event of a claim and will ensure the insurer does not subject your claim to averaging.

 

A contents valuation is also practical for companies or auditors compiling accurate financial reports regarding asset utilisation, asset depreciation and maintenance. It can also play a major role in determining a company’s market value.

CONTENTS SURVEY PROCEDURE
  • 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, will not be covered by your insurer.
  • Your jewellery must always be handled exclusively by yourself.
  • We will assess your daily-use items such as clothing, bed linen, crockery and cutlery by applying an average percentage, please point out any high-value items in this respect to the surveyor.
  • As we respect your privacy the surveyor will not open any cupboards or drawers or unpack any containers.
  • The surveyor will ask you 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 your written consent.
  • Once the survey is completed you will be asked to rate our service.
  • To ensure the valuation of your contents is accurate, we may consult with you again after the survey to agree on a value for unique items for which we were unable to source prices.

MARKET PRICE VALUATIONS

MARKET PRICE VALUATIONS

A market price valuation is practical in the following instances:

 

  • Making an informed marketing, buying or rental decision
  • 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
  • Tax declarations
  • Establishing an auction reserve price
  • Preparing a corporate take-over or merger
  • Winding up an insolvency

MUNICIPAL RATES CHECK

CONTESTING A MUNICIPAL VALUATION

The mass appraisal techniques used by the General Valuation Roll leave ample room for error. However, the Municipal Property Rates Act (MPRA) does make provision for errors to be corrected through the Supplementary Roll. Most property owners only become aware of their updated valuations once they receive their first new rates invoice.

 

If you believe the municipal valuer has over-valued your property, you should contest this and - if justified - the municipal valuer will amend it.

 

If an objection is not lodged during the advertised objection period there is very little prospect of having the municipal valuation amended, except in special circumstances.

 

IMPORTANT: Do not forego your right to object to an incorrect valuation by missing CoJ’s deadline of 6 April 2018.

 

Get an independent and objective market price valuation in support of your objection.

COJ GENERAL VALUATIONS ROLL 2018 (Courtesy of City of Johannesburg)
INTRODUCTION

Municipal property rates is a legislative requirement that requires every municipality like the City of Johannesburg to adopt a Rates Policy annually. This includes governing the property rating process by defining the different categories of property as well as specific categories of property ownership that may qualify for rates rebates and exemptions. To fulfil this legislative requirement, properties need to be rated. The levying of property rates starts with the valuation process. Property valuation data is compiled in a general valuation roll document, which consists of property information of all rateable properties, inclusive of the market value and property category.

The City of Johannesburg will release the General Valuation Roll on 20 February 2018.

 

 

GENERAL VALUATION

A general valuation roll is determined and produced every four years, as stipulated within the Municipal Property Rates Act (MPRA) No 6 of 2004. The City of Johannesburg was granted a 12-month extension by MEC for local Government. The City's current valuation roll was implemented with effect from 1 July 2013. As a result of the extension of 1 year granted by the MEC for Local Government, the City will implement its next general valuation roll on 1 July 2018.

 

General Valuation (GV) 2013 was implemented on 1 July 2013, it forms the assessment rates base for the City of Johannesburg during its period of validity. GV 2013 consisted of 812 000 registered properties within the City of Johannesburg when the GV was implemented. The GV was compiled with the property market as at 2 July 2012 (valuation date). The GV 2013 will be valid until 30 June 2018. The next GV 2018 will be implemented as at 1 July 2018 with the valuation date being 1 July 2017.

 

Section 78 of the Municipal Property Rates Act 6 of 2004 as amended requires that the valuation roll be updated on a regular basis when changes take place to property. These valuations are called supplementary valuations and must be compiled and published at least once a year in a Supplementary Valuation Roll.

 

Supplementary valuations are done, amongst others, for the following reasons:

  • Properties omitted from the Valuation Roll
  • included in a municipality after the last general valuation
  • subdivided or consolidated after the last general valuation
  • New property registrations
  • Subsequent property developments or amendments
  • Properties that were incorrectly valued during the last General Valuation Roll
  • Where property categories have changed

 

The city has done more than 60 000 supplementary valuations since the implementation of GV 2013. The number of properties in the GV as at 23 July is 872 223.

 

Here is the 2018 General Valuation Roll for the City of Johannesburg (this link will only be active from 20 February 2018):  https://coj2018.evaluations.co.za/

TARIFF CATEGORIES

The City of Johannesburg allocates different categories of properties to the properties in the valuation roll. It is important to understand your property category because property rates are levied in accordance with the property category. The zoning of the property determines the category that will be applied to the property. For example, if a property is zoned “Residential” the category will be “Residential” and the residential property rates tariff will be applied to that property.

 

  1. Business and commercial
  2. Sectional title Business
  3. Sectional title residential
  4. Sectional title other
  5. Residential property
  6. Residential with consent use
  7. Municipal
  8. State
  9. Farming
  10. Public service infrastructure
  11. Agricultural business
  12. Agricultural residential
  13. Agricultural other
  14. Vacant land
  15. Mining
  16. Education
  17. Religious
  18. Public Service Infrastructure-private
  19. Private open space
  20. Public benefit
  21. Multipurpose residential
  22. Multipurpose business
  23. Unauthorised use
OBJECTION PROCESS

The owners of properties within the boundaries of the City of Johannesburg or any other person have the right to inspect the general valuation roll and object to the entry in the roll where the owner or any other person disagrees with the entry in the roll or against an omission from the roll.

 

Date of Valuation: 1 July 2017

Date of Implementation: 1 July 2018.

Please make sure you complete the official objection form and not a Query form.

Get a professional market price valuation in support of your objection.

CONTENTS OF GENERAL VALUATION ROLL

(Local Government Municipal Property Rates Act 6 of 2004, as amended (Section 48))

The Local Government Municipal Rates Act No 6 of 2004 stipulates that:

A General Valuation Roll must list all rateable properties in the municipality. The valuation roll must reflect the following particulars in respect of each property as at the date of valuation to the extent that such information is reasonably determinable and all these entries can be objected against:

a) The registered or other description of the property;

b) The category determined in terms of section 8 in which the property falls;

c) The physical address of the property;

d) The extent of the property;

e) The market value of the property, if the property was valued;

f) The name of the owner; and

g) Any other prescribed particulars.

PUBLIC NOTICES OF GENERAL VALUATION ROLL

(Local Government Municipal Property Rates Act (Section 49))

The Valuation Roll must be printed, bound, certified and handed over to the Municipal Manager by the Municipal Valuer 5 Months before implementation date of the roll.

The Municipal Manager must within 21 days of receipt of the Roll publish in Provincial Gazette once a week for two consecutive weeks that the Roll is open for inspection and in the media.

The valuation roll must be opened for inspection for a minimum of 30 days. (Prescribed by Section 49 of the MPRA).

Section 49 Notices inviting the owners to inspect the valuation roll and object to the entry in the roll where the owner disagrees with the entry or against an omission from the roll must be sent by ordinary mail. Together with an extract of the valuation roll pertaining to that owner's property.

The general valuation roll must be published on the official website of the City for the duration of the inspection period.

INSPECTION OF AND OBJECTIONS TO GENERAL VALUATION ROLL

(Local Government Municipal Property rates Act (Section 50))

  • Any person may inspect the Valuation Roll within the inspection period and lodge an objection against any of the entries that appears in the Valuation Roll.
  • Reason for the objection, along with evidence to support the objection must be included.
  • A municipal council may also lodge an objection with the municipal manager against any entry that appears in the roll.
  • It is important to note the objection, must be in relation to a specific individual property and not against the Valuation Roll as such.
  • The Municipal manager must after the end of the inspection period submit all objections to the Municipal Valuer.
  • The lodging of objections does not defer the liability for payment of rates and taxes.

 

The Valuation Roll will be available for inspection by members of the public at the following 12 stations around Joburg, from 20 February until 6 April 2018:

  • MIDRAND - Midrand Customer Service Centre, 300 15th Road
  • FLORIDA PARK - Roodepoort Civic Centre 1st Floor, 100 Christiaan De Wet Road
  • ORLANDO EAST, SOWETO - Orlando East Customer Service Centre, 1425A Sofasonke Street
  • PROTEA NORTH - Protea North Customer Service Centre, 229/49 Kunene Street
  • RANDBURG - Randburg Civic Customer Service Centre, Cnr Braamfischer Drive and Jan Smuts Avenue
  • JABULANI - Jabulani Customer Service Centre, 1 Koma Road
  • BRAAMFONTEIN - Thuso House Customer Service Centre, 61 Jorrisen Street
  • BOOYSENS - City Power, Blue Square Boardroom, 40 Heronmere Street off Booysens Road,
  • SANDTON - Sandton Customer Service Centre, 137 Daisy Street
  • ENNERDALE EXTENSION 9 - Ennerdale Customer Service Centre, Cnr. Katz and Smith Walk Road
  • LENASIA - Lenasia Civic Centre, Cnr. Rose and Elland Road
  • ELDORADO PARK EXTENSION 5 - Eldorado Park Customer Service Centre, 4046 Link Crescent Avenue

 

No e-mail or electronic fax correspondence will be considered for objections.

Objectors are advised to have their Section 49 Notice handy when objecting at the above-mentioned venues. Alternatively, residents may log onto the City’s website to lodge an online objection or download objection forms.

 

Objections can be categorised as follows:

  • Residential
  • Properties other than Residential or Agricultural
  • Agricultural Holdings, or
  • Farms
PROCESSING OF OBJECTIONS

(Local Government Municipal Property Rates Act (Section 51))

  • The objections received by the public are checked, captured on the City's system and objection numbers are automatically allocated.
  • A confirmation letter is produced and serves as proof that the objector submitted an objection against a specific entry.
  • The municipal valuer must consider the objections and make a decision in terms of Section 51 and adjust the Valuation Roll. The number of objections and its complexity will determine the time frames.
COMPULSORY REVIEW OF DECISIONS OF THE MUNICIPAL VALUER

(Local Government Municipal Property Rates Act (Section 52))

  • In the event that the Municipal Valuer adjusts the value by more than 10% upwards or downwards the objection will be submitted to the Valuation Appeal Board for a compulsory review.
  • The appeal board must review the decision and confirm, revoke or amend the decision.
  • When the appeal board amends or revokes the value, the chairperson and the valuer must ensure that the valuation roll is adjusted in accordance.
  • Any adjustments or additions made to General Valuation Roll in terms of the above must take effect on the effective date of the General Valuation Roll.
  • Any adjustment in the valuation of the property that affects the rates payable the value on the account must be adjusted accordingly.
NOTIFICATION OF OUTCOME OF OBJECTION

(Local Government Municipal Property Rates Act (Section 53))

  • The municipal valuer must in writing inform the objector what the valuers' decision is and whether section 52 applies (change by more than 10%).
  • The objector and owner will be notified of the Municipal Valuers' decision.
  • The objector may apply in writing for written reasons of the municipal valuer’s decision.
  • Written reasons must be applied for within 30 days after the date of the notification at a fee as proclaimed in the Local Government Gazette, such fee must be paid in advance.
  • The Municipal Valuer must provide written reasons within 30 days of application.
  • If the Client is still not happy, an appeal must be lodged within 21 days of receiving the reasons.
APPEAL PROCESS

RIGHT OF APPEAL

(Local Government Municipal Property Rates Act (Section 54))

An appeal to an appeal board against a decision of a Municipal Valuer in terms of Section 51 may be lodged in the prescribed manner with the Municipal Manager concerned by:

  1. A person who has lodged an objection in terms of section 50 (1) (c) and who is not satisfied with the decision of the municipal valuer;
  2. An owner of a property who is affected by such a decision, if the objector was not the owner; or
  3. The Council of the municipality concerned, if the municipality's interests are affected.

 

The Chairperson of the Appeal Board must inform all parties concerned of the date and venue where the appeal hearing will take place. The Chairperson of the Appeal Board and the Valuer of the Municipality must ensure that the valuation roll is adjusted or added to in accordance with the decision of the Appeal Board.

 

The Valuation Appeal Board is an independent body appointed by the MEC for Local Government under Section 56 of the Municipal Property Rates Act. The Board consists out of a legal representative (Advocate) and two professional valuers, registered at the SA Council for Professional Valuers.

FAQs
What is a General Valuation Roll?
  • A General Valuation Roll (GV) is a legal document that consists of property information of all rateable properties within the boundaries of a municipality. It is produced according to The Municipal Property Rates Act 6 of 2004 (MPRA) as amended.
  • As at 1 July 2017 there were just over 879 000 registered properties in Johannesburg.
What is the purpose of a General Valuation Roll?
  • The General Valuation Roll assigns a value and a category to all properties in a municipality, with the objective of generating rates on an equitable basis.
  • The rules on categorization and tariffs will be in accordance with the Rates Policy.

 

 

Why a new Valuation Roll?
  • The last COJ valuation roll was implemented with effect from 1 July 2013, and will terminate on 30 June 2018.
  • By law the City of Johannesburg needs to review its valuation roll every four years.
  • The MEC for Local Government has granted the City of Johannesburg a 12 months extension; therefore the new General Valuation must be implemented on 1 July 2018.
When can I inspect the new General Valuation Roll?

You can inspect the new General Valuations roll on the City of Johannesburg website or at one of the 12 centres listed below.

  • The 2018 valuation roll will be signed by the Municipal Valuer and submitted to the Municipal Manager on 30 January 2018.
  • The Municipality will thereafter publish the Valuation Roll and open it for inspection at the municipal offices and on its website
  • The Valuation Roll will be open at 12 stations and this will happen from 20 February 2018 to 6 April 2018.
  • The roll will be made available for public inspection for a period of 45 days (MPRA only requires 30 days)
  • In this period property owners will be able to object to their values or any other property value that is deemed to be incorrect.
  • Objections can be lodged at the 12 centres (below) or online on the CoJ website
  • All homeowners will be notified of the new value of their property in writing and be invited to inspect the roll and lodge an objection if they wish to do so.
  • Any person including the CoJ may lodge an objection.

 

*The 12 centres where the General Valuation Roll can be inspected and objections can be lodged:

  • MIDRAND - Midrand Customer Service Centre, 300 15th Road
  • FLORIDA PARK - Roodepoort Civic Centre 1st Floor, 100 Christiaan De Wet Road
  • ORLANDO EAST, SOWETO - Orlando East Customer Service Centre, 1425A Sofasonke Street
  • PROTEA NORTH - Protea North Customer Service Centre, 229/49 Kunene Street
  • RANDBURG - Randburg Civic Customer Service Centre, Cnr Braamfischer Drive and Jan Smuts Avenue
  • JABULANI - Jabulani Customer Service Centre, 1 Koma Road
  • BRAAMFONTEIN - Thuso House Customer Service Centre, 61 Jorrisen Street
  • BOOYSENS - City Power, Blue Square Boardroom, 40 Heronmere Street off Booysens Road,
  • SANDTON - Sandton Customer Service Centre, 137 Daisy Street
  • ENNERDALE EXTENSION 9 - Ennerdale Customer Service Centre, Cnr. Katz and Smith Walk Road
  • LENASIA - Lenasia Civic Centre, Cnr. Rose and Elland Road
  • ELDORADO PARK EXTENSION 5 - Eldorado Park Customer Service Centre, 4046 Link Crescent Avenue
What is the Implementation Process for the General Valuation Roll
  1. Compile Valuation Roll
  2. 30 Jan 2018: Submit GV to Municipal Manager
  3. Publish in Gazette and newspapers
  4. 20 Feb-6 April 2018: Objection period 45 days:
  5. Receive objections
  6. Valuers to review objections
  7. 1 July 2018: Implementation of GV 18 (start rating)
  8. Notification of objection outcomes
  9. Receive appeals from objectors
  10. Appeal Board attending to Appeals
  11. Appellants notified of Appeal Board outcome
How does the City levy property rates?
  • The levying of property rates is done through the establishment of a valuation process. The City begins the process by compiling a general valuation roll document, this consists of property information of all rateable properties, inclusive of the market value and property category.
  • Different categories are allocated to properties, it is important to understand that these property categories affect the rates being levied. A general valuation roll is produced and published every four years, as stipulated within the Municipal Property Rates Act No 6 of 2004 as amended. The City's current valuation roll was implemented with effect from 1 July 2013. The City of Johannesburg was granted a 12-month extension by MEC for local Government for GV 2013. As a result of the 1-year extension the City will implement its next general valuation roll on 1 July 2018.
How are my property rates used?
  • Paying your rates enables the municipality to -
    • provide public safety
    • provide extended health care
    • build libraries
    • provide sports and recreation facilities
    • collect refuse
    • install and maintaining storm water pipes
    • fix potholes
    • install and maintain street lights

 

What is the date of valuation and why is it important?
  • Section 31 of the MPRA states that for the purposes of a general valuation, a municipality must determine a date that may not be more than 12 months before the start of the financial year in which the valuation roll is to be first implemented. The general valuation must reflect the market value of properties determined in accordance with market conditions which applied as at the date of valuation.
  • The date of valuation refers to the date at which property values are determined and is fixed for the purpose of the general valuation roll. In terms of the 2013 General Valuation roll, 2nd July 2012 is the valuation date. It is also the date that will be used for all future calculations for the purposes of supplementary valuations up until a new general valuation roll replaces the 2013 general valuation roll.
  • The date of valuation for GV 2018 is 1 July 2017. That means the market conditions as at 1 July 2017 were taken into account to determine the market values of the properties. It is also the date that will be used for all future calculations for the purposes of supplementary valuations up until a new General Valuation roll replaces the GV2018.
  • The implementation date for the 2018 General Valuation Roll is 1 July 2018 and coincides with the date of the municipality’s new financial year.
What is the basis of valuation used by the City?
  • The basis of valuation is market value, this is the most probable price that a property would realise on the date of valuation, if sold on the open market by a willing seller to a willing buyer. (MPRA Section 46).
Was my property physically inspected by a valuer?
  • In terms of Section 45 of the MPRA, the physical inspection of properties to be valued is optional and other valuation techniques may be used such as:-
    • Aerial photography; and
    • Computer assisted mass appraisal systems or techniques
  • As this is a mass valuation, the Municipal Valuer uses a computer aided mass appraisal (CAMA) system to determine the values of all properties.
  • The CAMA system is based on statistical analysis and geographical information systems (GIS), and therefore depends on reliable and accurate data.
  • Data collection refers to the attributes of the property collected for the valuation process.
  • This process is divided into two sections : Residential and Non-residential.
  • Residential data collected is livable areas, outbuildings and other buildings (granny flat) as well as other attributes of the property such as swimming pool, location, security etc.
  • Obtaining access to all properties is not possible, and as such, the Municipal Valuer makes use of advanced technology that allows the collection of data. This includes the use of building plans and oblique imagery, which allows the Valuers to see the properties from all angles, and be able to measure the extents and heights of the buildings, as well as other information relating to quality, condition and other improvements. This method is acceptable in terms of the MPRA.
  • In cases where the aerial photography and other imagery is not useable, usually in the cases where properties have a lot of foliage, or high security walls, then physical inspection of the site is undertaken. The data collection process is independently reviewed for quality assurance purposes to ensure the data collectors are consistent in their approach and the data they record is correct for the subject property.
  • For non-residential properties, field visits are undertaken to obtain data such as the property use, rentals and financial records of businesses.
How does the City establish the property market value?
  • In order to establish your property value, sales are analysed in your area. These sales provide the basis for the valuation. There are several types of property categories in the municipality, each category is valued on a different basis, although they all relate to the market value. For example, residential property (including sectional titles) is valued on a comparable sales method. Most commercial properties (including retail, offices, warehousing) are valued on the income capitalization method, whilst institutional properties such as schools, hospitals and clinics are valued on the cost method. When valuing the properties, the Municipal Valuer establishes the market conditions, as at the date of valuation and this is based on recent sales and relevant market information and activity in the various areas. Therefore this will take into consideration areas where values have declined, increased or remained stagnant due to the current state of the economy.
What is the effective date of the implementation?
  • The effective date of the valuation roll is a date the roll is implemented. This usually coincides with the date of the new financial year of the City. The customer will be levied rates according to the new general valuation roll from the implementation date. The effective date for GV 2018 is 1 July 2018.
What happens to properties that are built after the compilation of the general valuation roll?
  • The City is compelled by legislation to reflect all changes to properties in a Supplementary Valuation Roll.
What is a supplementary valuation roll?
  • A Supplementary Valuation roll is compiled to update the "Main" Valuation Roll”. The aim is to correct or update errors, omissions, subdivisions, consolidations, rezoning, township development, building alterations, the construction of new buildings and any other exceptional reason that may change or affect the value of a property, subsequent to the compilation and publication of the "Main" Valuation Roll”.
  • Supplementary valuations are performed during each financial year, according to the market conditions as at “date of valuation.”
What do I do if I disagree with my property valuation?
  • The legislation makes ample provision for any person to object to an entry in a valuation roll provided that such objection takes place in the prescribed manner and within the stipulated objection period.
  • Specific details about the objection dates and venues will be displayed in the individual notices to owners regarding their property valuations (Sect 49 notices).
  • Appoint an independent valuer to verify your property value.
  • All objections received within the specified period will be considered by the Municipal Valuer and Assistant Municipal Valuers.
  • No objections will be accepted after the closure of the official objection period.
  • Following the objection period the valuers review the objections received and notify the objector and/or owner of the outcome.
  • Dissatisfaction with the amount of rates payable does not constitute an objection.
How do I object?
  • Complete the relevant form and hand-deliver it to your municipality (facsimile or e-mail objections are NOT accepted):

FORM A: Residential

FORM B: Properties other than Residential or Agricultural

FORM C: Agricultural holdings and farms​​​

Where can I submit my objection?
  • Objections can be submitted online at www.joburg.co.za or delivered by hand to one of the 12 centres (below) indicated.
  • Submissions by e-mail or facsimile will NOT be accepted.
  • Late objections will NOT be accepted.
  • The closing date for objections is 15:00 on 6 April 2018.

 

There are 12 centres where objections can be delivered by 6 April 2018 - these are:

  • MIDRAND - Midrand Customer Service Centre, 300 15th Road
  • FLORIDA PARK - Roodepoort Civic Centre 1st Floor, 100 Christiaan De Wet Road
  • ORLANDO EAST, SOWETO - Orlando East Customer Service Centre, 1425A Sofasonke Street
  • PROTEA NORTH - Protea North Customer Service Centre, 229/49 Kunene Street
  • RANDBURG - Randburg Civic Customer Service Centre, Cnr Braamfischer Drive and Jan Smuts Avenue
  • JABULANI - Jabulani Customer Service Centre, 1 Koma Road
  • BRAAMFONTEIN - Thuso House Customer Service Centre, 61 Jorrisen Street
  • BOOYSENS - City Power, Blue Square Boardroom, 40 Heronmere Street off Booysens Road,
  • SANDTON - Sandton Customer Service Centre, 137 Daisy Street
  • ENNERDALE EXTENSION 9 - Ennerdale Customer Service Centre, Cnr. Katz and Smith Walk Road
  • LENASIA - Lenasia Civic Centre, Cnr. Rose and Elland Road
  • ELDORADO PARK EXTENSION 5 - Eldorado Park Customer Service Centre, 4046 Link Crescent Avenue
What can't I object to?
  • Legislation allows you to object to any entry or omission from the General Valuation Roll but not the roll in totality.
  • A property owner can not object to the property rates.
  • Dissatisfaction with the amount of rates does not constitute an objection.

 

How long will an objection take to be resolved?
  • The number of objection received will have an effect on the process period. The Municipal Valuer will review the objections taking in consideration the information that was provided on the objection form.
  • The outcome of the Municipal Valuer decisions will be mailed to objectors in phases as per completion.
What do I do if my objection is dismissed?
  • If the owner is not happy with the outcome of the Municipal Valuer's decision (objection outcome value), an appeal may be lodged.
  • Appoint an independent valuer in support of your appeal.
  • The appeal will be heard by an Appeal Board consisting of a chairperson and a minimum of two assistants.
  • The appellant will be notified of the decision of the Appeal Board by the secretary to the Appeal Board.
Do I need a Lawyer to represent me at the Appeal Board?
  • The Appeal Board is not a court of law, and you do not need to bring a lawyer, unless you wish to do so. You may also bring any other expert to assist you during your appeal hearing. However this will be for your own account. (Appoint an independent valuer in support of your appeal.)
  • The Valuation Appeal Board will consist of a Chairperson with legal qualifications and sufficient experience in the administration of justice. The remaining members will be made up of not fewer than two and not more than four other members with sufficient knowledge of, or experience in, the valuation of property. At least one must be a professional valuer registered in terms of the Property Valuers Profession Act 47 of 2000.
  • The Appeal Board is an independent Body appointed by the MEC Local Government.
To what extent is the Municipal decision final?
  • Section 52(2) of the MPRA states that if the Municipal Valuer changes the value of a property that was objected to by more than 10% upwards or downwards the Appeal Board must review the objection, confirm, amend or revoke the decision of the Municipal Valuer.
I was not able to object, what can I do now as the objection process is closed?
  • If you have not objected to the value of the property before, you can lodge a query requesting the Valuation directorate to revisit your property valuation. Your query must be accompanied by supporting evidence as to why you consider your value as incorrect. The query will be investigated and you will be notified of any changes to the value in terms of Section 78 of the MPRA.
  • You may request for a section 78 review to a Supplementary Valuation. You will receive a section 78 review notice, with the details of the review period (duration, time of closing). Should you not be satisfied with the changes that were made to your property, you may lodge an objection when the relevant supplementary is open for objections.
Why does the municipal market value differ from the estate agents’ value?
  • The date of valuation refers to the date at which property values are determined and is fixed for the purpose and duration of the General Valuation Roll. Estate agents determine the current value of a property which might differ significantly from the market conditions as at date of the general valuation.

RISK SURVEYS

PROPERTY RISK SURVEY

Mirfin provides a comprehensive survey covering all risk aspects of a property. These include the state of maintenance, security, electrical compliance, fire protection, lightning protection, gas installations and natural hazards (e.g. flooding by nearby bodies of water, veld fires, earthquakes etc.). Our risk report also includes recommendations on preventative measures to be implemented, such as the correct fire-fighting equipment to be used and how to minimise the loss of personal assets and property should disaster strike.

 

Benefits of a property risk assessment:

 

  • Measuring the vulnerability of your assets and assessing the risk exposure
  • Increasing awareness of the safety and security of your family, property, employees and customers
  • Protection against future hazards and unforeseen losses or injuries
  • Helping to avoid unnecessary maintenance costs and expensive law suits
  • Enabling the insurer to better calculate the risk
  • Enabling you to negotiate lower premiums with your insurer
  • Enjoying good standing with your insurer

 

 

Risk survey procedure

 

Risk surveys are conducted discreetly and will not intrude on your daily operations. We work hard to conclude each survey in the minimum amount of time required. We will ask you to produce certain documentation such as certificates for electrical compliance, gas installations and safety implementations.

THATCH RISK SURVEY

Our specialised thatch risk survey is an extension of the property risk survey. This survey assesses the type, construction, age, condition and size of a thatched roof. It also reports on the lightning density in the specific area and the installation of lightning conductors to the regulatory standards. We look at the type of fireplace and chimney construction, the chimney's height above the roofline and safety implementations such as spark arrestors, chimney insulation, fire retardants, flashing membranes and regularly serviced fire-fighting equipment. A check for electrical and other identifiable hazards, as well as the compliance of electrical and gas installations with safety standards, is imperative.

VEHICLE RISK SURVEY

Vehicle inspections are conducted on behalf of the insurance carrier to determine the insurability of passenger vehicles, commercial vehicles, agricultural vehicles, vintage vehicles and non-motor vehicles such as caravans, trailers and boats. The inspection report will indicate the brand, model, year of manufacture, the owners' and additional users' particulars, registration and serial numbers, license expiry date, vehicle usage, day and night parking, odometer reading, physical description, apparent condition of exterior and interior, equipment and accessories, security features, tyre tread etc.

GIS RISK REPORT

The GIS Risk Report is a compilation of bird’s-eye views, various GIS maps (Geographic Information Systems) and local statistics on the occurrence of lightning strikes, fires, flooding, earthquakes, crime etc.  It offers a low-cost automated risk analysis of a property and its environment and augments our insurance valuation report.

 

Due to the inherent limitation of information derived from aerial images and automated systems, the GIS Risk Report cannot offer the same accuracy as a comprehensive risk survey which is based on a physical on-site assessment,