of Municipal Property, Lease Agreements and Public Place and Road Closures

When considering selling immovable property, municipalities distinguish between viable and non-viable properties. Viable properties are those that can be developed and function as separate properties registered at the Deeds Office. The sale of viable properties is often initiated by the government and these may only be sold or leased through a public tender process or a public auction.

Non-viable properties are normally smaller, non-functional land portions that cannot be developed on their own and can only be functional if a neighbouring landowner uses the property together with their own. Those interested in buying a non-viable municipal property can approach Planning Space to assist in applying to the municipality to purchase a portion of land. The process is governed by the provisions of the Municipal Finance Management Act (Act 56 of 2003) (MFMA) and will involve obtaining comments from the municipal service department and the public.

For the sale of a portion of road or public place to be implemented, the property often needs to be subdivided and rezoned and, if the land has a road or public place status, the public nature of the land parcel needs to be changed by way of a Closure Application to the local authority and the Surveyor-General before it can be sold. The law also requires this closure to be gazetted.

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