What it takes to start a new township in South Africa

The process of creating a new township in South Africa is far more extensive than one might expect, involving a lengthy and complex legal procedure.

Currently, there are over 500 townships in South Africa, which house half of the country’s population and generate close to R200 billion a year.

According to Lutfiyya Kara, a Senior Associate in CDH’s Real Estate Law practice, the creation of new townships is regulated by the Spatial Planning and Land Use Management Act 16 of 2013 (SPLUMA), which came into operation in 2015. 

SPLUMA aims to create a new system for approving and regulating land development, including setting guidelines for how new developments should proceed. 

It also establishes basic principles for provincial laws that will control planning in each area, which are outlined in the specific by-laws passed by municipalities.

From July 1, 2015, all township establishment applications submitted to municipalities will be handled according to these new by-laws, in conjunction with SPLUMA. 

Any township applications submitted before this date will be completed under older laws, known as ordinances.

“In terms of The City of Johannesburg Metropolitan Municipality: Municipal Planning By-Law, 2016 (By-Law), there are four phases to follow when establishing a township,” Kara explained. 

These phases are: the evaluation phase, the approval phase, the registration phase, and the post-registration phase. 

The evaluation phase is the first part of this process. 

According to Section 26(1) of the By-Law, if a landowner wants to establish a township on their property, they must submit an application under the By-Law.

Generally, a town planner submits the application on behalf of the owner. 

The following documents need to be included with the application and sent to the Executive Director of Development Planning:

• A cover letter
• Form A, which contains the application information
• A copy of the registered title deed for the land
• If the land has a mortgage, details of the bondholder and their consent
• A layout plan of the proposed township prepared by a land surveyor
• A geotechnical and radon report from a professional engineer, if required
• Any additional information that might be necessary

After you submit your township application, the City of Johannesburg will send it to relevant authorities who might be affected. These could include:

• Local, provincial, or national road authorities
• Neighbouring municipalities
• Other departments or stakeholders (municipal, provincial, or national)

These groups will have 60 days to review the application and raise any concerns or provide feedback and if no one objects, the City will decide on the application within 90 days.

Next, Kara explained that the process moves on to the approval phase.  

Once the township application is approved, the City will set specific conditions for the new township, known as “Conditions of Establishment.”

A conveyancer will help draft a certificate related to the land, which will assist the City in finalising these conditions.

Because most townships are built on farmland, you’ll need to follow the Subdivision of Agricultural Land Act 70 of 1970 (SALA). 

This means getting approval from the Department of Agriculture, Forestry, and Fisheries to use the farmland for a township. 

“This is normally referred to as the ‘70 of 70 Consent’ or the ‘SALA Consent’,” she said. 

If the land is listed as an agricultural holding in the title deed, the town planner will apply to the City to remove it from the Agricultural Holding Register so it can be converted back to farmland before becoming part of the township.

This, Kara explained, is followed by the registration phase. 

If the new township is on part of a farm, a small diagram of the farm section will be issued. 

Then, an application needs to be prepared for a Certificate of Registered Title under section 43 of the Deeds Registries Act 37 of 1947. This certifies the title of the farm portion used for the township.

If the township will cover two or more farm sections, those portions must first be combined. 

A Certificate of Consolidated Title will then need to be applied for under section 40 of the Deeds Registries Act, which merges the land portions into one parcel for the township.

If the land has a mortgage bond, the bondholder’s consent is required to open a township register on the farm and handle any related matters.

Section 46 of the Deeds Registries Act also requires that an application for opening a township register and registering a general plan for the land must be prepared. 

Finally, the post-registration phase occurs. 

After the township register is opened, the Registrar of Deeds must quickly notify the City of Johannesburg, Kara said. 

Once notified, the City will officially declare the township as approved through a notice in the Provincial Gazette. This notice will include the specific conditions under which the township has been approved.

From the date of this notice, any public roads within the new township will officially belong to the City.

“Establishing a township in South Africa is a complex and time-consuming task,” Kara said. 

“If you are thinking of doing it, it would be advisable to engage the services of reputable town planners, geotechnical engineers, and conveyancers to guide you through the process.”

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