Makhado municipality auctions 849 residential and businesses stands

Makhado local municipality has resolved to dispose of 849 vacant residential and business stands located in the newly established townships of South of Pretorius and Tshikota Extension 1. It said 834 of the vacant stands earmarked for disposal are zoned residential, five are zoned for residential and 10 are zoned for business.

Makhado municipality has appointed Tirhani Auctioneers to manage the process, from communications to in-loco inspections, marketing and ultimate disposal using the online auction method. 

Tirhani Auctioneers director Dr Tirhani Mabunda said: “Online auction is a transparent, auditable, convenient and competitive asset disposal process conducted on an internet-based platform. The online auction platform enables prospective buyers to bid online against each other from the comfort of their offices or homes, with the system acting as an invisible auctioneer and regulating bid increments and the entire bidding process with each lot sequentially closing at a given time. Bid prices are updated in real time as bidding progresses and the highest bidder wins at the close of the bidding process subject to predetermined reserve prices.

“Assistance will be provided to first-time online auction users (including those who are computer illiterate) through information booths, workshops and selected estate agents who will educate them on how to register for online auctions and how to bid. 

“Bidding centres will be established in the vicinity of the municipality to help those who want to participate in the online auction.”

Nemaname KM, Makhado’s acting municipal manager, said: “The auctioning of the vacant stands will be based on open market values determined in accordance with the provisions of the Municipal Finance Management Act. 

“Apart from raising funds for engineering services projects within the newly established townships, the disposal of the vacant stands will create opportunities for people in and around the municipality to build dwellings and establish businesses.”

The auction will be conducted in two consecutive rounds. Buyers will be restricted to buy one stand per registered natural or juristic person during the first round. No restrictions will apply during the second round for properties unsold during the first round.

Properties bought during the auction must be developed within three years from the date of signing the deed of sale, with the provision that the council may allow an extension of a further two years. If the purchaser fails to complete the development within the prescribed period, the property will revert to the council without compensation by the municipality to the purchaser for any improvements on the property.

The online auction is planned to take place before the end of September 2021. Visit www.tirhani.co.za, call +27 (0) 11-608-2280 or email info@tirhani.co.za for more details about the disposal process and upcoming auctions. 

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This article was paid for by Tirhani Auctioneers.