Sectional Title Valuations in the City of Johannesburg General Valuation 2008. MUNICIPAL PROPERTY RATES ACT, 6 OF 2004. WERNER SARVARI NOVEMBER 2007.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
General Valuation 2008
A unit means a section together with its undivided share in the common property apportioned to that section in accordance with the participation quota of that section
A section means a section shown as such on a sectional planTHE LEGAL DEFINITION
SECTION + COMMON PROPERTY = UNIT
10. (1) A rate on property which is subject to a sectional title scheme must be levied on the individual sectional title units in the scheme and not on the property as a whole.
47. When valuing a property which is subject to a sectional title scheme, the valuer must determine the market value of each sectional title unit in the schemeTHE MUNICIPAL PROPERTY RATES ACT – WHAT TO VALUE
A seller is selling a UNIT. This could be a“flat”, garage, toilet, servant’s quarters or any other section.
He also “sells” the undivided share in the common property, e.g. a swimming pool that is part of the scheme, including exclusive use rights, e.g. parking.
The selling price therefore also reflects the “value” of the common property and it will not be valued separatelyWHAT TO VALUE?
The valuation roll should therefore reflect each unit as listed on the sectional plan with the market value of that unit.
Any vacant land forms part of the value (price), as the owner owns (and sells) a portion of the vacant land in relation to the PQ.WHAT TO VALUE?
Section 27(4) of the Sectional Titles Act states that a person may transfer his interest in an exclusive use right to the owner of another section in the scheme by registration of a notarial deed of cession.WHAT TO VALUE – Exclusive Use?
Section 27(7) of the Sectional Titles Act states that a person holding two or more rights to exclusive use areas by one title deed, may obtain a separate title deed in respect of one or more of the exclusive use areas.
It is very possible that we may not have all information relating to exclusive use rights due to the manner in which these rights are transferred and/or managed by the Body Corporate