A Word Of Caution
Before we get into the details of using Section 7/6, it is worth understanding the risks that come with commencing with building before having the necessary approvals in place.
 Here’s a sobering look at what can happen when you break ground without the necessary green light:
- Stop-Work Orders: Municipal building inspectors have the authority to halt construction immediately if they discover work progressing without approved plans or zoning. This can lead to significant delays and disrupt your carefully planned schedule.
- Fines and Penalties: Building code violations can result in hefty fines imposed by the municipality. The severity of the penalty will depend on the extent of the non-compliance. Recently we saw a property investor getting a R1m penalty in Cape Town for building without having proper approvals in place.
- Demolition Orders: In extreme cases, the municipality may even issue a court order demanding the complete demolition of any unauthorized structures. This scenario can be financially devastating, not only due to the demolition costs but also the wasted investment in materials and labor.
- Legal Disputes: Building without proper approval can lead to legal disputes with neighbors or other stakeholders who may be negatively impacted by the unauthorized construction.
- Difficulties Selling the Property: A property with unapproved structures becomes a major hurdle when it comes to selling. Potential buyers will be hesitant to invest in a property with potential legal or structural issues.
Remember: Following the proper procedures and obtaining the necessary approvals, while it might take longer initially, safeguards your project in the long run.
It ensures you’re building a structure that meets safety regulations and zoning requirements, ultimately protecting your investment and avoiding the high costs associated with non-compliance.
Rezoning: A Necessary Hurdle
If your property is correctly zoned for the purpose you intend, then there is no need for a rezoning. All you have to do is appoint your architect to get your plan approved.
If however the property is not correctly zoned then your development often hinges on obtaining rezoning approval. This process involves formally requesting the municipality to change the designated use of a specific piece of land.
For example, transforming agricultural land into a residential development would require rezoning.
Obtaining rezoning can be a lengthy and complex procedure.
It typically involves:
- Public participation: The municipality must consider objections and concerns from neighboring property owners or potentially impacted residents.
- Technical evaluations: Experts assess factors like environmental impact, traffic flow, and infrastructure capacity.
- Council approval: The final decision on rezoning rests with the municipal council, which can involve presentations and debates.
B. Section 7/6: A Potential Head Start
Now, let’s turn our attention to Section 7/6 of the National Building Regulations and Building Standards Act (Act 103 of 1977).
This provision allows for a potential head start on construction even before final building plans are officially approved.
Here’s the key: Section 7/6 permits limited construction activities to commence under specific conditions.
These conditions typically involve:
- Alignment with preliminary plans: The initial building plans submitted must demonstrate a high degree of certainty in terms of the final design.
- Minimal foundation work: Section 7/6 may allow for groundwork or foundation construction to begin, minimizing delays once final plans are approved.
- Local authority approval: Crucially, obtaining written permission from the local building authority is essential before starting any work under Section 7/6.
C. The Overlap: Rezoning and Section 7/6 Together
While Section 7/6 offers a potential time advantage, it’s important to understand how it interacts with the rezoning process. Here’s the catch: Section 7/6 typically applies to situations where the intended use of the land is already zoned for the proposed development.
However, in the case of rezoning, the final land use is still under consideration.
So, how can these two processes work together? Here’s a possibility:
- Strategic application: A developer might submit preliminary building plans that align with the desired rezoned use. This allows for a potential head start on groundwork or foundation construction under Section 7/6, provided the local authority approves it contingent on successful rezoning.
However, it’s crucial to remember that rezoning approval is not guaranteed.
Therefore, utilizing Section 7/6 in conjunction with rezoning requires careful planning and a high degree of risk assessment with your professional team.
Potential Benefits of Utilizing Section 7/6 with Rezoning (with Caution)
While the complexities of rezoning can significantly extend the development timeline, Section 7/6 offers a glimmer of hope for expediting the construction process.
However, it’s crucial to approach this strategy with a healthy dose of caution.
Here’s a breakdown of the potential benefits, alongside the ever-present need for careful consideration:
A. The Time Advantage: A Developer’s Dream (Maybe)
The most significant potential benefit of utilizing Section 7/6 alongside rezoning is the potential to shave off valuable time from the overall development timeline.
Imagine this scenario:
- You submit preliminary building plans that align with your desired rezoned use.
- After securing written permission from the local authority under Section 7/6 (contingent on rezoning approval), you can potentially begin groundwork or foundation construction.
While you wait for the rezoning process to finalize, you’ve already made a head start on the physical site preparation.
This can translate to a smoother transition and faster overall construction time once the final building plans are approved.
It is worth noting however that Section 7/6 approval is usually only granted for 90 days, while your rezoning process could take 9 to 18 months.
It would thus make sense if you only apply for Section 7/6 approval when your rezoning application is only a few months away from final approval.
B. Minimizing Delays and Potential Cost Savings
By getting a jumpstart on groundwork under Section 7/6, you can potentially minimize delays that would typically occur after final plan approval.
This translates to a more efficient construction flow and the possibility of reduced overall project costs.
However, it’s important to factor in the potential for unforeseen complications during the rezoning process, which could still lead to delays and cost overruns.
C. Early Site Preparation: A Calculated Move
Depending on the specific project and the conditions outlined in the Section 7/6 approval, there might be an opportunity for some early site preparation activities.
This could involve tasks like:
- Site clearing and leveling
- Utility connection preparations
- Early foundation work (with strict adherence to the preliminary plans)
Important Note: The extent of permissible activities under Section 7/6 will be determined by the local building authority.
It’s crucial to obtain clear written permission outlining the specific activities allowed and any contingencies attached to the approval.
Remember, the potential benefits of Section 7/6 are significant, particularly when navigating the lengthy rezoning process.
However, as we’ll explore in the next section, the risks and complexities involved require careful consideration and professional guidance.
Important Considerations and Risks: Rezoning and Section 7/6 Together
The prospect of expediting construction with Section 7/6 while navigating rezoning might seem attractive.
However, venturing down this path necessitates a clear understanding of the complexities and potential pitfalls involved.
Here’s a breakdown of the crucial considerations and inherent risks that demand your attention:
A. The Need for Expert Guidance
Successfully utilizing Section 7/6 alongside rezoning requires the expertise of a qualified team.
This includes:
- Town Planner: A town planner will be instrumental in navigating the rezoning process, ensuring your application aligns with municipal regulations and addressing any potential objections.
- Architect: An architect will translate your vision into well-defined preliminary building plans that demonstrate a high degree of certainty regarding the final design. This is crucial for securing Section 7/6 approval.
- Engineer: An engineer will ensure the structural integrity of the planned foundation work permitted under Section 7/6, minimizing the risk of rework or redesign later.
B. Amplified Complexity: A Delicate Balancing Act
Marrying rezoning with Section 7/6 significantly increases the complexity of your project. Here’s why:
- Conditional Approvals: Section 7/6 approval for construction activities typically hinges on successful rezoning. This means any delays or setbacks in the rezoning process can stall your construction progress.
- Heightened Risk of Non-Compliance: With preliminary plans and zoning approval still pending, there’s a greater risk of unknowingly deviating from regulations during the limited construction allowed under Section 7/6. This could lead to stop-work orders and costly rework.
C. The Looming Threat of Delays and Cost Overruns
While Section 7/6 offers the potential to save time, the rezoning process itself can be lengthy and unpredictable. This can lead to:
- Construction Delays: Even with groundwork underway, the overall construction timeline can be significantly extended if rezoning approval takes longer than anticipated.
- Cost Overruns: Extended delays due to rezoning can lead to cost overruns associated with factors like labor costs, material price fluctuations, and potential storage fees for unused materials.
D. The Domino Effect of Revisions
The back-and-forth nature of the rezoning process can sometimes necessitate revisions to the preliminary building plans.
If these revisions significantly alter the foundation work already completed under Section 7/6, it could trigger costly rework and further delays.
Remember: Utilizing Section 7/6 alongside rezoning requires a thorough risk assessment and a high tolerance for uncertainty.
While the potential benefits are enticing, the potential consequences can be severe.
Alternative Strategies for Expediting Development alongside Rezoning
The complexities involved in marrying Section 7/6 with rezoning highlight the importance of exploring alternative strategies that might expedite your development project while going through the rezoning process.
Here are a few options to consider:
A. Pre-Zoning Application Consultations
While you can’t bypass the formal rezoning process, engaging in pre-application consultations with the municipality can be highly beneficial.
These consultations allow you to:
- Gauge potential challenges: Discuss your desired rezoning with municipal planners to identify any potential hurdles or areas requiring additional attention in your application.
- Refine your proposal: Based on the feedback received, you can refine your rezoning proposal to better align with municipal development goals and potentially streamline the approval process.
- Prepare for public participation: Pre-application consultations can help you anticipate and address potential concerns from neighboring property owners or residents who might be impacted by the rezoning.
B. Exploring Modular or Prefabricated Construction (if applicable)
If the desired rezoned use aligns with modular or prefabricated construction methods, exploring these options can offer significant time-saving benefits.
Here’s why:
- Faster on-site construction: Modular or prefabricated units are typically constructed off-site in controlled environments, leading to faster on-site assembly once the rezoning is approved.
- Reduced weather delays: The faster on-site construction offered by these methods minimizes the project’s vulnerability to weather delays, potentially leading to a quicker completion timeline.
C. Streamlining the Building Plan Approval Process
While not directly related to rezoning, focusing on streamlining the building plan approval process can also contribute to an overall faster development timeframe.
This could involve:
- Early engagement with the local building authority: Discuss your project with the building authority early on to ensure your plans meet all the necessary regulations, potentially avoiding delays during the final approval stages.
- Complete and well-drafted plans: Investing in high-quality, well-detailed building plans from the outset minimizes the risk of revisions or requests for additional information, which can slow down the approval process.
Remember: While these alternative strategies won’t eliminate the wait associated with rezoning, they can help you optimize your project timeline and potentially shave off valuable time during different stages of the development process.
In Closing: Building Legally Without Approved Plans
The allure of a faster start on your development project is undeniable. However, as we’ve explored, utilizing Section 7/6 alongside the rezoning process presents a complex maze of considerations and potential risks. Here’s a final breakdown to guide your decision-making:
The Potential Benefits (Remember the Need for Caution):
- Reduced Overall Timeline: Section 7/6 offers the possibility of a head start on construction, potentially shaving valuable weeks or even months off the development timeframe, especially when rezoning takes a long time.
- Minimized Delays and Cost Savings: Early site preparation under Section 7/6 can lead to a smoother construction flow once final plans are approved, potentially reducing overall project costs.
The Crucial Considerations and Risks:
- The Need for Expert Guidance: Successfully navigating this strategy necessitates a qualified team of professionals, including a town planner, architect, and engineer.
- Amplified Complexity and Increased Risk: Marrying rezoning with Section 7/6 significantly increases the project’s complexity, raising the risk of non-compliance, delays, and cost overruns.
- The Looming Threat of Revisions and Delays: Rezoning processes can be unpredictable, leading to delays and potentially necessitating revisions to preliminary plans, which can trigger rework and further slow down construction.
The Path Forward: Weighing the Options Carefully
The decision to utilize Section 7/6 alongside rezoning requires careful consideration of your risk tolerance and project priorities.
- For the Risk-Averse: If minimizing risk is paramount, exploring alternative strategies like pre-zoning consultations, modular construction (if applicable), and streamlining building plan approvals might be a more prudent approach.
- For the Time-Constrained (with Caution): If expediting the construction timeline is a top priority and you have a high tolerance for risk, then Section 7/6 might be a viable option. However, proceed with extreme caution, ensure you have a qualified team on board, and be prepared for potential delays and unforeseen complications.
Remember: Consulting with experienced property developers, town planners, and legal professionals specializing in rezoning is crucial before embarking on this path.
Their insights can help you make an informed decision that aligns with your specific project goals and risk tolerance.
Aslam is from Johannesburg, South Africa and graduated with a BComm degree from the University of South Africa and followed that up with a BComm Hons degree in Finance and Investments.
He has spent over 18 years in the financial services sector, with 12.5 years in the commercial property finance arena with 3 of the major banks in the country.
His specialty being deal structuring and finance solutions for commercial property investors and developers across the commercial property sector, including large scale retail developments, high density residential investments , industrial and office property.
Aslam was also a fast food franchise investor for 7 years, is experienced in digital marketing and online lead generation and has owned and managed multiple residential properties.
