Written by: Eugene van der Walt | Afrikaanse weergawe
Every few years your municipality places a value on your property. That figure quietly determines how much you pay in rates every single month. Many owners never look at it, and many are paying more than they should. Here is how the system works and what you can do about it.
Why the Valuation Matters
Your municipal property rates are calculated by applying a rate in the rand to the municipal value of your property. In simple terms, the higher your property is valued, the more you pay in rates. A valuation that is too high therefore costs you money every month for years until the next valuation roll is published.
This is not the same as the price you could sell your home for on the open market, nor the value your bank placed on it for bond purposes. It is a separate figure determined by the municipality, and it is the one that drives your rates bill.
How the Valuation Is Meant to Work
By law, the municipal valuation must reflect the market value of your property as at a specific date, known as the date of valuation. This is important. If the date of valuation is, for example, 1 July of a particular year, the value must reflect what a willing and genuine buyer would have paid on that date. Movements in the market after that date should not affect the valuation on the current roll.
The municipality is legally required to notify every owner individually of their new valuation. In practice, notices are missed, ignored or never received, which is why it is far safer to check the valuation roll yourself. The roll is published on the municipal website and is usually also available at central locations such as public libraries.
How to Check and Object
If you believe your valuation is too high, you are entitled to lodge an objection. The process is straightforward but time-sensitive.
- Find your valuation. Access the valuation roll on your municipality’s website or at a designated public venue and note the value placed on your property and the date of valuation.
- Compare it to the market. Ask whether a genuine buyer would truly have paid that amount for your property on the date of valuation. Recent sale prices of comparable properties in your area are the best evidence.
- Lodge your objection in time. Objections must be submitted within the period specified when the roll is published. This window is strict. If you miss it, you generally have to wait or follow a more limited review process.
- Support your objection with evidence. Comparable sales, a private valuation, photographs showing the condition of the property and any factors that reduce its value all strengthen your case.
- Await the outcome and appeal if needed. The municipal valuer considers your objection and issues a decision. If you are unhappy with the result, there is a further right of appeal to a valuation appeal board.
A Common and Costly Mistake
The most frequent error owners make is doing nothing. They assume the municipality got it right, or they miss the objection window, and then they quietly overpay for years. A valuation that is even modestly too high can add up to a significant sum over the life of a valuation roll.
Objecting is your right, it costs little, and where the valuation is genuinely excessive it can produce real and lasting savings on your monthly rates.
Van Der Walt & Associates Inc assists property owners throughout the Tygervalley area with rates disputes, valuation objections and municipal matters. Contact us for an initial consultation.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice.