| (1) | Subject to any other applicable provisions of this Act, the market value of a property is the amount the property would have realised if sold on the date of valuation in the open market by a willing seller to a willing buyer. |
| (2) | In determining the market value of a property, the following must be considered for purposes of valuing the property: |
| (a) | The value of any licence, permission or other privilege granted in terms of legislation in relation to the property; |
| (b) | the value of any immovable improvement on the property that was erected or is being used for a purpose which is inconsistent with or in contravention of the permitted use of the property, as if the improvement was erected or is being used for a lawful purpose; and |
| (c) | the value of the use of the property for a purpose which is inconsistent with or in contravention of the permitted use of the property, as if the property is being used for a lawful purpose. |
| (3) | In determining the market value of a property the following must be disregarded for purposes of valuing the property: |
| (a) | Any building or other immovable structure under the surface of the property which is the subject matter of any mining authorisation or mining right defined in the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002); |
[Paragraph (a) amended by section 32(a) of Act No. 19 of 2008]
| (b) | any equipment or machinery which, in relation to the property concerned, is immovable property, excluding— |
| (iii) | an air-conditioning plant; |
| (iv) | fire extinguishing apparatus; |
| (v) | a water pump installation for a swimming pool or for irrigation or domestic purposes; and |
| (vi) | any other equipment or machinery that may be prescribed; and |
[Paragraph (b) amended by section 32(b) of Act 19 of 2008]
| (c) | any unregistered lease in respect of the property. |
| (4) | In determining the market value of a property used for agricultural purposes, the value of any annual crops or growing timber on the property that have not yet been harvested as at the date of valuation must be disregarded for purposes of valuing the property. |
| (5) | [Subsection (5) deleted by section 32(c) of Act No. 19 of 2008] |
