CRIME BUSTERS OF SOUTH AFRICA reports on:
July 1 2008: SA Parliament's own experts: "Land Grab bill is unconstitutional...'
SA's new 'Land Expropriation' law ends all private property rights
Warning: Buy at your own risk, especially if you are 'white' or 'foreign'...
Article 6 Feb 2008 By the Institute of Estate Agents of S.A.
WHAT IS EXPROPRIATION?
Expropriation is the act of taking possession of an item of property from its owner in exchange for (little or no) compensation and irrespective of the wishes of the original owner.
WHAT CAN BE EXPROPRIATED?
Any property can be expropriated, meaning movable and immovable property and rights in connection therewith.
ACTIONS BY THE DEPARTMENT OF PUBLIC WORKS
The Department has started on the business of reviewing the laws on expropriation which become matter of urgency after the ANC conference in Polokwane, with a workshop to be held on the 15th February 2008. This new act will replace or amend the current Expropriation Act, 63 of 1975 and several others.
WHY THE CHANGE
There are many reasons for the change, one being that the current Act is a restrictive one in that it restricts the state to expropriate only "for public purpose". It does not comply with the Constitutional provision which states that the state can expropriate "in public interest". The new act will harmonize over 100 pieces of legislation empowering various state organs to expropriate.
WHAT IS "PUBLIC PURPOSE"?
Public purposes include any purpose connected with the administration of the provisions of any law by an organ of state. That's why Gautrain can expropriate your property, near and dear to your heart and in your family for ages.
PRINCIPLES TO COMPLY WITH UNDER THE NEW ACT
Include that expropriation must be in the public interest, the scope of protected rights must be expanded and the alignment of payment of compensation with the provisions of the Constitution.
WHAT IS THE AMOUNT OF COMPENSATION UNDER THE CURRENT ACT?
Section 35(3) of our Constitution requires the government to pay "just and equitable compensation". In practice that means market value. The amount of compensation to be paid shall not exceed the aggregate of the market value of the property and an amount to make good any actual financial loss. This is where the problem arises for many ordinary citizens.
WHAT ABOUT IMPROVEMENTS ON YOUR PROPERTY FOR WHICH YOU DON’T HAVE MUNICIPAL APPROVED PLANS?
Section 12(5)(c) of the Expropriation Act, 63 of 1975 states that if the value of your property has been enhanced in consequence of the use thereof in a manner which is unlawful, such enhancement shall not be taken into account.
THE EFFECT
This simply means that should you have converted your dilapidated barnyard (for which you had approved plans) into 4 luxury guest rooms which you rent out for a substantial extra income, you will not be compensated for the building costs thereof (only for the value of the dilapidated barnyard), the loss of rental income or the enhancement to the value of your property. SORRY
CAN I STOP AN EXPROPRIATION?
No, once you receive your notice, your property has already been expropriated and is compensation the only issue that remains. You can only stop the expropriation if the correct procedures were not followed.
LAST WORD
Please ensure that all your improvements on your property (including swimming pools, patios, lapas and the like) have municipal approved plans – not doing so, might cost you very dearly in any possible expropriation process.
ROSCHER COETZEE NORTJE & MAMPEULE INC
Sunette Snyman (sunettes@rcn-inc.co.za)
http://www.ieasanorth.co.za/news.asp?ACTION=SHOWITEM&ITEM=298
