How long does it take to finalise an application to buy municipal land and, once approved, must I pay the whole amount upfront?

The long answer

It’s very difficult to say how long it takes to finalise an application to buy municipal land, and none of the municipalities indicate timelines, but it’s probably safe to say that it is a lengthy process, considering all the steps that have to be gone through, all of which involve different people and committees. 

This is the process that has to be followed in summary:

1. Put in your application to the municipality about the land you want to buy.

2. Your application is then circulated to all municipal departments.

3. The land is evaluated so that it is sold at market price.

4. Provisions of the Municipal Finance Management Act of 2003 (MFMA) have to be complied with, in terms of income and expenditure.

5. Municipal officials prepare a report for the Council / Committee to approve.

6. If approved, a Deed of Sale is finalised which includes any conditions attached to the sale.

7. You pay all the fees and the purchase price before you sign the Deed of Sale.

8. The municipal manager signs the Deed of Sale.

9. A copy of the Deed of Sale is given to you, to all the departments and to the conveyancing attorneys who will do the transfer.

10. Transfer papers are drawn up; clearance certificates are issued, all tax/VAT matters settled and the asset is removed from the assets register.

In addition, real estate company Seeff says that the new Spatial Planning and Land Use Management Act (SPLUMA) means that by October 2020, the municipality will have to provide a new “SPLUMA certificate” to the National Deeds Office before any sale of property can be concluded.

This is, says Seeff, “to ensure that the zoning of the property matches the land use and to determine that all the buildings on the premises are in accordance with approved building plans which should be filed at the municipality.”

There is no indication that applicants can do a follow up at all, but only that the municipality can require further details if necessary from an applicant throughout the process.

As stated above, you pay all the fees and the purchase price upfront before you sign the Deed of Sale.