Real Estate Investor Magazine South Africa July 2015 | Page 35

LEGAL Land Use Rights The new implications of SPLUMA for your property development BY NADIA VAN ZYL A s from 1 July 2015, property investors can expect the implementation of the new Spatial Planning and Land Use Management Act (SPLUMA) - Number 16 of 2013. SPLUMA will be adopted as the primary legislation for the governance and management of property development. The execution of SPLUMA hopes to eradicate all previous unsustainable development patterns that were incited by the old order apartheid legislation. Most land use change applications submitted after 1 July 2015, will be lodged in terms of SPLUMA. Prior to the implementation of SPLUMA, all applications for land use rights, had to be submitted, inter alia, in terms of the Development Facilitation Act (DFA), the Town Planning and Townships Ordinance, 15 of 1986, and the Removal of Restrictions Act. The DFA was declared as partially unconstitutional, hence the need to implement SPLUMA. Now, property developers who wish to acquire land use rights to develop potential investments, will be able to obtain these rights via SPLUMA. SPLUMA officially takes precedence over all provincial legislation. Any contradiction between SPLUMA and provincial legislation, for example, the Ordinance, will render the provincial legislation inapplicable. Complete adherence to SPLUMA will be required if land use rights are to be obtained. The impact of SPLUMA will therefore affect all property developers nationwide. The legislator of SPLUMA is aware that various applications already submitted in terms of the DFA, are still pending. The Act thus makes provision for the www.reimag.co.za finalisation of such applications, in terms of SPLUMA by a date to be determined by the Minister. Any new land use rights applications must be revised by the relevant municipality first. Completed applications will then be categorised, processed and subjected to three phases. Applications must be finalised within 16 months by a Municipal Planning Tribunal (MPT), opposed to the previous Town Planning Committee (terms and conditions do apply). Any disputes regarding service contributions will also be dealt with within this timeframe. “With the new implementation of SPLUMA, it is envisioned that property development will accelerate.” If a property investor is dissatisfied with the decision of the MPT, an appeal may be lodged within 21 days, after which the Municipal Planning Appeals Tribunal (as opposed to the previous Provincial Townships Appeal Board) will revise the appeals lodged, as well as any undue delay present at that stage. With the new implementation of SPLUMA, it is envisioned that property development will accelerate and that any segregation caused by the past will be rectified. RESOURCES Le Roux Van Zyl Inc. JULY 2015 SA Real Estate Investor 33