Tshwane High Court: City Rescinds Kleinfontein Settlement

• The City of Tshwane has rescinded its settlement with Kleinfontein, citing lack of authorisation.
• Kleinfontein residents will face increased costs as a result of the rescinded settlement.
• Almost 20 other illegal developments in Tshwane are being formalised through a comprehensive programme.
• The council's decision may have far-reaching consequences for property development in Tshwane.

consequences management is already activated and heads will roll

The City of Tshwane has made a U-turn on its settlement with the Afrikaner settlement of Kleinfontein, which was recently made an order of the High Court in Pretoria. According to Eugene Modise, deputy mayor and member of the mayoral committee for finance, the settlement was not authorised by the council itself and must be set aside. This decision has significant implications for the residents of Kleinfontein, who will now face increased costs as a result of the rescinded settlement. The settlement had agreed to reverse the reclassification of the land on which Kleinfontein was developed without permission, bringing an end to litigation between the two parties.

The City of Tshwane's decision to rescind the settlement with Kleinfontein is rooted in its obligation to enforce land use and development laws. In August 2024, a court ruling described Kleinfontein as a 'Criminal Enterprise' and ordered the City of Tshwane to take action against unpermitted developments. The council has acknowledged that there are almost 20 other illegal developments in the area, but Modise stated that these will be formalised through a comprehensive programme. However, Kleinfontein is excluded from this process due to its lack of cooperation.

The rescission of the settlement with Kleinfontein has significant implications for property development in Tshwane. Lawyers advising clients on property development should be aware that the council's decision may have far-reaching consequences for other unpermitted developments. The increased scrutiny of land use compliance could lead to increased costs and penalties for developers who fail to comply with regulations. As Modise stated, 'consequences management is already activated and heads will roll' over this matter.

Lawyers advising clients on property development in the City of Tshwane should be aware that the council's decision to rescind the settlement with Kleinfontein may have implications for other unpermitted developments, and could lead to increased scrutiny of land use compliance.

Source: Original reporting via Moneyweb