This entails a number of legal, administrative and procedural tasks that will confirm the completion of Subsidized Housing Project in terms of all legislative provisions governing a Municipality and where relevant an affected Organ of the State.
This process also enables the effective ‘shifting’ of the Township under the operational responsibility of the Municipality under each relevant department within the Municipality and where it is captured into the Municipality’s annual operational budget(s).
On conclusion of all registrations, vesting transfers and related formalities associated with the Project, a full submission must serve before the Municipal Council.
The Council then by resolution formally recognises the completion of the Project, its full compliance with all legal, administrative and procedural aspects and passes operational responsibility onto every relevant department within the Municipality.
NB: In terms of the final Project Close Out, reference is made to the Beneficiary Administration section of this toolkit and must have been fully concluded.
NB: The assumption in this section of the toolkit under steps 1 to 4 is indeed that the Beneficiary Administration and all associated tasks and legal processes have been effected/concluded. If not, then Individual Transfers cannot be effected and the Project remains NOT CLOSED OUT!
NB: Before vesting and individual transfers can take place the process as per steps 2 to 3 must have been concluded.
There are two sub-steps in this phase:
On Proclamation of a Township(s) the erven numbered and zoned ‘Public Open Space/Places’ and ‘Transportation’ (Roads) vest in ownership with the Municipality and/or Organ of State where relevant.
Whilst the vesting of ownership occurs on date of Proclamation of the Township(s), such erven must be ‘removed’ from the ‘Parent Title’ of the Township(s) and a title deed created under the registered name of the Municipality and/or Organ of the State.
The Land Assembly Process and Proclamation of the Township(s) process will have identified all such erven that require a ‘vesting transfer(s)’ to be effected.
In terms of relevant Municipal legislation and legislation governing an Organ of the State and their respective asset registers these must be updated as soon as possible as is reasonably possible after the date of ownership of such immovable asset has passed to the Municipality and/or Organ of the State.
The Conveyancer must register such ‘vesting transfers’ simultaneously or immediately after the opening of the Township Register, provided the SPLUMA Section 53 Certificate has been issued by the Municipality. However, the actual time-frame (if any) for the vesting of roads and other Municipal infrastructure will often be set out in the SPLUMA Approval/Consent. Hence, careful scrutiny and guidance from the project conveyancer is critical.
Other than the SPLUMA RoD, the other legal instruments that have a bearing on such vesting transfers are:
In certain cases, infrastructure services, in particular roads and improvements developed on Public Open Spaces such as ‘Sport Facilities’ etc. will have been confirmed via SLA.
Other National Legislation e.g the SANRAL Act.
There will be a need to formalise more in future for the Institutional Mechanisms that govern the future management and maintenance of such Public Places. For example:
Community facilities are often developed on Public Open Spaces and these must be operated, maintained and managed in terms of the Municipal Finance Management Act, Act 56 of 2003 and/or the Public Finance Management Act, Act No 1 of 1999 in the case of a Municipality and Organ of the State respectively.
Further formalities and legal contracts may need to be put in place where private entities (including NGOs) operate, manage and maintain such facilities.
