WHAT DO THEY MEAN FOR YOU, THE OWNER?
<MF LEGAL>
Owning a home is a wonderful privelege, but there are times when it can be quite scary - especially if you don't know the relevant laws. Our lawyers, Masilo Friemond, recently sent out this great article on expropriation. In a political climate of land-reforms and massive urbanisation, this is an excellent topic and well-worth read!
Expropriation is a process whereby the government aquires your property from you. This is usually not a process of negotiation and can occur in instances where land is taken for public benefit or, in certain instances, wher land is needed for land reform purposes.
Expropriation is a process whereby the government aquires your property from you. This is usually not a process of negotiation and can occur in instances where land is taken for public benefit or, in certain instances, wher land is needed for land reform purposes.
Public benefit (or public purposes) includes any intention connected with the administration of the provisions of any law by an organ of state. For example; Eskom may require your piece of land to put up a tower, or the Gautrain can expropriate your property to build on it for public benefit.
As an owner, it can be quite unnerving if you receive a notice from a government division stating that your land has been taken away and that you will have to leave within a certain number of days. These notices allow a person to respond within 60 days and usually declare what compensation will be paid. Where compensation is not mentioned the owner of the property is entitled to ask for a price, however the owner has no right to argue that his land cannot be expropriated.
The amount of the compensation payable must be both just and equitable, reflecting an impartial balance between the public interest and the interests of those affected, having regard to all relevant circumstances, including:
- The current use of the property
- The history of the acquisition and use of the property
- The market value of the property
- The extent of direct state investment and subsidy in the acquisition and beneficial capital improvement of the property
- The purpose of the expropriation
The market value of the expropriated property should be the starting point in determining compensation, it is then adjusted according to the other provisions of the law. Expropriation is not preventable: the only room for negotiation is on the compensation payable.
