| Summary: | In this dissertation, a study is undertaken of the
administration of the valuation of property at the local
government level with special reference to the Durban
Municipality.
The establishment of local authorities is a direct result
of the Government's policy to provide goods and services
for local communities. Consequently, it is significant
to locate the place of local authorities in the
constellation of public institutions, and to examine
their rapidly increasing number of functions. Past
legislation, authorising the establishment of local
authorities, coupled with a discussion of the Regional
Services Councils Act, 1985 (Act 109 of 1985), provide
the necessary insight required for the understanding of
the property valuation function by local authorities.
The principles pertaining to the theory of valuation
are explored, with particular emphasis on the impact of
supply and demand on the valuation of property. The
valuer, who performs numerous functions, is an important
cog in the valuation process. Since the valuation of
property is a prerequisite to the rating of property,
it is also useful to examine the latter aspect to
appreciate the interaction between valuation and rating.
Legislation pertaining to valuation is voluminous. At
the Central Government level, the Department of Public
Works and Land Affairs is responsible for the valuation
of property. The Expropriation Act, 1975 (Act 63 of 1975),
has played a significant role over the judicial influence
of property valuation. The valuation profession has taken
a significant step forward since 1982, with the promulgation
of the Valuers' Act, 1982 (Act 23 of 1982), which emphasizes
the necessity of raising the standard of the valuation of
immovable property throughout the Republic of South Africa.
At the provincial level, separate ordinances, pertaining
to property valuation, exist for each province. Finally,
local authorities promulgate bylaws to regulate the property
industry.
There is an abundance of literature on the methods of
property valuation. The different methods of valuation
are the Direct Sales Comparison Method, the Income Method,
the Land Residual Method and the Cost Method. The
aforementioned Methods of valuation are particularly
suitable to the estimation of the value of vacant land,
flats, townships and schools, respectively.
The scope of the functions o f the Durban Municipality's
Estates Department has grown so vastly since 1914 that
there are ten clearly demarcated valuation zones presently.
The aforementioned Department's intricate organisational
structure, with clearly defined functions delegated to
the divisions, sections and subsections, ensure that tasks
pertaining to property valuation are concluded efficiently
and effectively.
The degree of subjectivity in the valuation of residential
properties has been drastically reduced with the introduction
of the computer at the Estates Department. The work
procedures pertaining to the drawing up of the Valuation
Roll and the functioning of the Valuation Appeal Board,
respectively, ensure efficient and effective control
in property valuation.
In the light of the aforementioned observations, the
following recommendations are made:
(i) amend the Valuers' Act, 1982 (Act 23 of 1982), to
reserve specific valuation tasks for valuers;
(ii) that the valuer should persevere in his studies on
property valuation;
(iii) that the valuer should adhere rigidly, at all
times, to the guidelines of public administration;
(iv) the designation of 'building valuer' should be
changed;
(v) the Durban City Council's rate of investment in
property should be accelerated;
(vi) the training and orientation of valuers should be
an ongoing process.
(vii) separate terms of reference should be assigned to
the Estates Department;
(viii) separate departments should be created for valuations
and estates, respectively;
(ix) a simply worded and uniform valuation ordinance
should be implemented in the Republic of South
Africa;
(x) a uniform method of valuation, for a particular type
of property, should be introduced;
(xi) land and buildings should be estimated at market
value;
(xii) the services of a full-time Senior Legal Adviser
are essential;
(xiii) the unearned increment of the capital value of
land should also be taxed;
(xiv) the frequency of valuations should increase during
periods of accelerated expansion;
(xv) a uniform rating system should be implemented
throughout the Republic of South Africa;
(xvi) the negotiation process should be used as a
cross-check to enhance the validity of valuations;
(xvii) the fees paid to the members of the Valuation
Appeal Board should be increased; and
(xviii) larger pieces of vacant land should be taxed at
a higher rate. === Thesis (MPA)-University of Durban-Westville, 1987.
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