Residents are encouraged to review their newly proposed property valuation before the objection deadline on June 18, as the Ekurhuleni metro has compiled the General Valuation Roll for the years 2021 to 2025 with the date of valuation being July 1.
The Valuation Roll will be implemented on July 1.
According to the metro spokesperson, Zweli Dlamini, the metro has compiled the General Valuation Roll according to the contents of the Municipal Property Rates Act 6 of 2004 (MPRA) as amended.
ALSO READ: Metro responds to concerns of overvaluation
The following methods of valuation were used, and these methods are acceptable by courts in determining values of properties in South Africa:
Sales Comparable Method
This method estimates the market value for a property using recent sales data from other similar properties. The sales comparison method requires that there is an active market for similar properties. Residential properties, vacant land, agricultural properties are valued using this method.
The Income Approach (income capitalisation approach)
This method is used to determine the value of an income-generating property by deriving a value indication by conversion of expected benefits like cash flow and reversion into the value of the property. Income method used for mostly business, industrial properties, retail properties and commercial properties.
Depreciated Replacement Cost Method
This method is used for specialised properties which do not normally exchange hands in the market and cannot be valued using the above two methods.
It is used on properties like schools, churches, hospitals, treatment plants. If a person is not satisfied with the outcome of their property, he/she should follow a legislative process as prescribed by Section 50 of the said act.
Section 50 of MPRA reads as follows:
• Any person may, within the period stated in the notice referred to in section 49 inspect the roll during office hours, on payment of a reasonable fee, request the municipality during office hours to make extracts from the valuation roll, and lodge an objection with the municipal manager against any matter reflected in.
• An objection in terms of subsection (l)(c) must be in relation to a specific individual property and not against the valuation roll as such.
• A municipal manager must assist an objector to lodge an objection if that objector is unable to read or write.
• A municipal council may also lodge an objection with the municipal manager concerned against any matter reflected in, or omitted from, the roll. The municipal manager must inform the council of any matter reflected in, or omitted from, the roll that affects the interests of the municipality.
• A municipal manager must, within 14 days after the end of the period stated in the notice referred to in section 49 (1) (a), submit all objections to the municipal valuer, who must promptly decide and dispose of the objections in terms of section 51.
• The lodging of an objection does not defer liability for payment of rates beyond the date determined for payment.
The legal process as prescribed by the municipal property rates act
The valuation process is as follows:
• General Valuation Roll (GVR) Values are published.
• Property owners who are not satisfied with the outcome of the GVR are allowed to object against an entry of that GVR.
• If the objector is still not satisfied with the outcome of the Objection (Valuer’s Decision), the objector is then given another opportunity to appeal (please note that appeals are handled by an independent VAB which is appointed by Provincial Cogta).
• All Valuer’s Decisions with 10 per cent change from the GVR value, of which no appeal was received for them are subject to Section 52 Reviews (which are also handled by independent VAB appointed by the Provincial Cogta).
• Any property owner/appellant that is not satisfied with the outcome of the VAB (either Appeals or Section 52 review outcomes) can approach the High Court as the CoE does not have powers over the VAB, and cannot challenge the decision of the VAB except through the high court route.
ALSO READ: How water damage impacts property value
