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PROPERTY MANAGEMENTAPPLYING TOBUY OR LEASEMUNICIPAL LANDLDSOSALEFORAPPLICATIONTO LETThis booklet details the rules,regulations and procedures involvedin leasing or buying municipal land.

Current information is validas at July 2021

CONTENTSVIABLE LANDApplying to buy viable municipal land 4Applying to lease viable municipal land 5NON-VIABLE LANDApplying to buy non-viable municipal land Applying to lease non-viable municipal land PROPERT Y MANAGEMENT: APPLYING TO BUY OR LEASE MUNICIPAL LAND8113

VIABLE LANDAPPLYING TO BUY VIABLE MUNICIPAL LAND1. When selling City property, the law requires that theCity do so at market value. The buyer will have to pay theprice of the land, plus all costs relating to the transaction,such as surveying, advertising, the deed of sale, andtransfer. The City may not sell a property that it needs toprovide the minimum level of basic municipal services.2. All applications to buy City property are consideredin terms of current laws and the City’s Managementof Certain of the City of Cape Town’s ImmovableProperty Policy.3. Viable properties may only be sold through a processof public competition, for instance, through a publictender, auction, or call for proposals. Viable propertiesare those that can be developed and can function asseparate properties, which the Registrar of Deeds canregister. These include properties used for commercial,residential, business and social reasons (including earlychildhood development centres and public places ofworship). Just because a member of the public hasshown interest in a property does not imply that theyhave any right to buy that property. The City has noobligation to sell any specific property to anyone.4CIT Y OF CAPE TOWN

APPLYING TO LEASE VIABLE MUNICIPAL LAND1. All applications to lease City property are consideredin terms of current laws and the City’s Managementof Certain of the City of Cape Town’s ImmovableProperty Policy.2. Viable properties may only be leased through aprocess of public competition, for instance, through apublic tender or call for proposals. Viable propertiesare those that can be developed and can function asseparate properties, which the Registrar of Deeds canregister. These include properties used for commercial,residential, business and social reasons (including earlychildhood development centres and public places ofworship). Just because a member of the public hasshown interest in a property does not imply that theyhave a right to lease that property. The City has noobligation to lease any specific property to anyone.5

PROCESS SUMMARY: BUYING/LEASING VIABLE LAND1SELECTION CRITERIA2DISPOSAL PROGRAMMEViable properties are selected for disposal/lease and are influenced by: the City’sstrategic objectives and delivery targets;public/councillors input; service department’sneeds; internal database; and availableresources/capacity. The selected propertiesare placed on the Disposal Programme.The Disposal Programme gives effectto the Municipal Finance ManagementAct (2003) and Municipal Asset TransferRegulations (2008). Legislation andpolicy dictates that the property must besurplus to municipal requirements, soldvia public tender and at market value.43PUBLIC PARTICIPATIONINVESTIGATIONIf the technical investigation deems aproperty fit for sale/lease, then a callfor public participation is advertisedin newspapers, and is open for 30days. It’s also sent to local councillorsand National/Provincial Treasury.Determine if it is possible to sell/leasethe property by confirming/ascertaining:ownership, surplus to municipalneeds, zoning, viability, developmentconditions, etc. A valuation report anda disposal/lease plan are prepared.56IN-PRINCIPLE APPROVALRELEASE OF TENDERA report is submitted to the decision-makingauthority for in-principle approval to sell/lease. A comprehensive approval route isfollowed via subcouncil, financial and legalcompliance, Immovable Property AdjudicationCommittee (IPAC), Mayoral Committee andCouncil/Director: Property Management.A tender is drafted after taking intoaccount the findings of the technicalinvestigation and resolution from Council.The Bid Specification Committee scrutinisestender specifications and conditions.The tender is released to the public on aFriday and is open for 30 working days.87AWARD OF TENDERREGISTRATIONAfter the award, a sale/lease agreementis negotiated and concluded with thewinning tenderer. For disposal matters,once the sale agreement is signed, aconveyancer is appointed to overseethe transfer and registration.6CIT Y OF CAPE TOWNAll bid offers received in terms of the City’sSupply Chain Management Policy (2011)are evaluated on compliance and price.The highest compliant bid offer abovethe reserve price will be recommendedfor award to the competent authority. TheDirector: Property Management is thecompetent authority for certain leasesand the Immovable Property AdjudicationCommittee (IPAC) is the competentauthority for the sale of City property.

CONTACT US FOR FURTHER INFORMATION:Viable properties: Property Disposals and Acquisitions BranchCape Town Civic Centre, 13th floor, Hertzog Boulevard, Cape Town021 400 3900Non-viable and improved properties: Property Holding BranchTygerberg regionGoodwood Municipal Offices,1st floor, cnr Voortrekker Roadand De Villiers Street, Goodwood021 444 4967Southern regionPlumstead Administrative Offices,3 Victoria Road, Plumstead021 444 2583Cape Town regionCape Town Civic Centre, 13th floor,4 bay side, 12 HertzogBoulevard, Cape Town021 400 6551East regionOmniforum Building, 2nd floor, 94 VanRiebeeck Street, Kuils River021 444 5878PROPERT Y MANAGEMENT: APPLYING TO BUY OR LEASE MUNICIPAL LAND7

NON-VIABLE LANDAPPLYING TO BUY NON-VIABLE MUNICIPAL LAND1. When selling City property, the law requires that the Citydo so at market value. The buyer will have to pay the priceof the land, plus all costs relating to the transaction, suchas surveying, advertising, the deed of sale, and transfer.The City may not sell a property that it needs to provide theminimum level of basic municipal services.2. All applications to buy City property are considered in termsof current laws and the City’s Management of Certain of theCity of Cape Town’s Immovable Property.3. Non-viable properties are dealt with by the regional offices ofthe City’s Property Holding Branch. Non-viable propertie”are those that cannot be developed on their own or functionas separate properties because of urban planning rules,physical constraints or size, and can therefore only befunctional if a neighbouring owner uses the propertytogether with their own. Those interested in buying anon-viable City property should complete an applicationform and return it to the relevant regional office.3.1. The City will have to consult a number of its servicedepartments for comment as part of its internalprocesses.3.2. If the service departments above support theapplication, the applicant will receive notice of theconditions that will apply to the sale, as well as theprice. If the applicant accepts the conditions andprice, the proposal will be advertised for objections,in terms of the law.8CIT Y OF CAPE TOWN

3.3. The City will send any objections to the applicantfor comment before they are submitted to Councilto make a decision.3.4. For the sale of a portion of road or public place,the property needs to be closed through aProvincial Gazette notice before it can be sold.The law also requires this closure to be advertised.3.5. In some cases, the property needs to be rezonedso that it can be used for the intended purpose.If so, the applicant will have to submit a separateapplication to the City’s Planning and BuildingDevelopment Management Department, whichwill carry its own costs. The rezoning of a publicplace will also require an environmental impactassessment (EIA).3.6. A land surveyor will have to be appointed atthe applicant’s cost to prepare diagrams for theproperty to be transferred.3.7. Once the approved diagrams have been received,a deed of sale will be prepared, which theapplicant needs to sign and then send to Council’sconveyancer to register the transfer.TARIFFS AND CHARGES APPLICABLE TO NON-VIABLE LANDSALES (01.07.2021 – 30.06.2022) EXCL. VATSUBJECT TO ANNUAL ESCALATION AS DETERMINED BY COUNCILApplication feeR2 625 incl. VATAdvertising fee[statutory advertising]R5 252 incl. VATFee to prepare sale agreementR1 215 incl. VATPROPERT Y MANAGEMENT: APPLYING TO BUY OR LEASE MUNICIPAL LAND9

PROCESS SUMMARY: BUYING NON-VIABLE fting of plan)CIRCULATION(consultationwith D)assessment)654APPROVAL(report tosubcouncil forcomment, reportto Council forin-principleapproval(S14), IPACfinal approval)ADVERTISING(authority toadvertise, CapeArgus, Die Burger,notification tosubcouncil, wardcouncillor, Nationaland e price)789AGREEMENTSURVEYAND LAND USE(suspensiveconditions ifapplicable)REGISTRATIONOF TRANSFERPRE-CONSULTATION(regional office) andAPPLICATION(standardapplication formand fee, captured onproperty transactionmanagementsystem (PTMS))10CIT Y OF CAPE TOWN

APPLYING TO LEASE NON-VIABLE MUNICIPAL LAND1. All applications to lease City property are considered interms of current laws and the City’s Management of Certain ofthe City of Cape Town’s Immovable Property Policy.2. Non-viable properties are dealt with by the regional offices ofthe City’s Property Holding Branch. Non-viable properties arethose that cannot be developed on their own or function asseparate properties because of urban planning rules, physicalconstraints or size, and can therefore only be functional if aneighbouring owner uses the property together with theirown. Those interested in leasing a non-viable City propertyshould complete an application form and return it to therelevant regional office.2.1. The City will have to consult a number of its servicedepartments for comment as part of its internalprocesses.2.2. If the service departments above support theapplication, the applicant will receive notice of theconditions that will apply to the lease, as well as therental amount. If the applicant accepts the conditionsand rental amount, the proposal will be advertised forobjections, in terms of the law.2.3. The leasing of a public place may also require an EIA.2.4. The City will send any objections to the applicant forcomment before they are submitted to Council to makea decision.2.5. A lease agreement will then be prepared, which theapplicant needs to sign.2.6. Tenants may put up certain structures on leasedproperty only if Council’s approval and permission areobtained beforehand.PROPERT Y MANAGEMENT: APPLYING TO BUY OR LEASE MUNICIPAL LAND11

TARIFFS AND CHARGES APPLICABLE TO LEASES(01.07.2021 – 30.06.2022) EXCL. VATSUBJECT TO ANNUAL ESCALATION AS DETERMINED BY COUNCILApplication feeR2 625 incl. VATAdvertising feeR5 252 incl. VATLease agreement preparation fee(Excluding minor encroachments,gardening or security leases)R1 215 incl. VATTariffs for minor encroachments 0 cm to 10 cm over theproperty boundaryNo tariff10 cm to 50 cm over theproperty boundaryR1 354per annum incl. VATTARIFFS FOR GARDENING AND/OR SECURITY PURPOSES 100 m²R651 per annum incl. VAT 100 m² 200 m²R1 300 per annum incl. VAT 200 m² 300 m²R1 950 per annum incl. VAT 300 m² 400 m²R2 601 per annum incl. VAT 400 m² 500 m²R3 252 per annum incl. VAT 500 m²R3 900 per annum incl. VATApplications for security leases must be accompanied by documents that proveexisting security/nuisance threats.TARIFFS FOR LAND LEASED FOR SOCIAL–RELATED PURPOSESWelfare, community, cultural, créche,early childhood development centre,place of worship, sport as well as forsport and recreational purposes12CIT Y OF CAPE TOWNR1 145per annum incl. VAT