SHOULD RESIDENTIAL HOME OWNERS BE CONCERNED ABOUT THE POSSIBILITY OF LAND EXROPRIATION TOO?

Newly appointed President Ramaphosa’s State of the Nation Speech caught the attention of many fixed property owners when he highlighted the possibility of expropriation of land without compensation.

Many assumed this would only apply to agricultural land, but others have pointed out that it could apply to all and any types of land, including residential property.

It must be noted that the expropriate of land is not yet an Act, but still a Bill, and must still pass the various procedures and checkpoints before it becomes law that is binding.

It is also important to note that all laws must be in line with the Constitution.  Expropriation of property without compensation directly contradicts Section 25 of our Constitution.

Any mechanisms of expropriation would need to also consider all stakeholders, which includes the greater community, the property owner, the financer of property (in the case of residential property that would most likely be a bank holding the mortgage), etc.

To expropriate residential property without compensation to the holder of the mortgage would undermine the business confidence in the property sector, which contradicts many of the key points of the State of the Nation Speech.

In addition, it would be necessary to change the Land Restitution Act, and present there are no proposed amendments (or even draft amendments) to either this Act, or the Constitution.

Before you sell your residential property off and invest the money elsewhere, read the discussion on:

http://www.bizcommunity.com/Article/196/568/173866.html