Real Estate Investor Magazine South Africa September 2016 | Page 24
LEGAL
The Expropriation Bill
All you Need to Know
BY SIMON DIPPENAAR
T
he word ‘expropriation’ sends a shiver down
the spine of many property owners and so the
Expropriation Bill, passed by the National
Assembly in May 2016, has attracted a great deal of
attention.
Just what is ‘expropriation’? Very simply, it is the
taking of privately owned property by government
(the expropriating authority) for the public good in
return for ‘just and equitable’ compensation.
EXPROPRIATION BILL
Expropriation has been acknowledged by the
Constitution of South Africa as a means for the State
to proceed with land reform, land redistribution and
service delivery, for example. The 2015 Expropriation
Bill is the latest – and depending on your viewpoint
– the most effective and fairest legislation to date to
deal with South Africa’s land issues.
That doesn’t mean it’s perfect! Questions are still
being asked about the constitutionality of the bill
and there is much concern about the powers given to
the State in matters of expropriation, the amount of
compensation that should be paid, property owners’
rights and so on.
Should you be worried? In this article we will give
a brief overview of the clauses of the bill and aspects
being debated. While it’s important to be aware of the
ramifications, all is not doom and gloom, at least not
at this stage.
PRACTICALITIES
How will the bill work in practice? Are there enough
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SEPTEMBER 2016 SA Real Estate Investor
qualified people in the employment of the State to
implement the provisions of the expropriation bill?
There is a lack of clarity here as well; the bill has yet
to be tested in court. How robust is the document,
currently awaiting the signature of the President
before it becomes an Act of Parliament?
OBJECTIVES OF THE BILL
The stated objective of the expropriation bill is to
provide a uniform and fair procedure or framework
for all expropriations, within the provisions of the
Constitution.
In this context, the history of the acquisition of
the property, the current use of the property and
the purpose of the expropriation will be taken into
account. As a land/property owner, you have the right
to approach the courts if you believe the proposed
compensation is inadequate. (The legal route can be a
costly and time-consuming exercise; mediation is an
alternative but this might not work for everyone.)
Let’s look briefly at the provisions of the bill …
HOW DOES IT WORK?
The expropriating authority can only expropriate
property for a public purpose or in the public interest.
If there is an intention to expropriate your property
(remember, this is not restricted to immovable
property), you will have the opportunity to negotiate
with the authority (except in the case of an urgent,
temporary use). The bill is clear that every effort must
be made to reach agreement with the property owner/
holder of an unregistered right.
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