Yesterday, the President assented to the highly controversial Expropriation Bill* (‘the Bill’). Tabled before Parliament in late 2020, the Bill has predictably been the subject of extensive parliamentary deliberations and political debate during its five-year journey to promulgation.
Crucially, the Bill is designed to give legislative effect to section 25(2) of the Constitution, which expressly recognises expropriation as a critical mechanism for the acquisition of property in the public interest, subject to the provision of just and equitable compensation.
The Bill repeals the pre-democratic Expropriation Act introduced fifty years ago and establishes a new statutory framework delineating the specific circumstances in which property may be expropriated in the public interest. To that end, it provides clarity to local, provincial, and national organs of state, guiding the procedures and processes for expropriation in line with the objectives of section 25(2) of the Constitution.
Notably, the Bill prohibits an expropriating authority from expropriating land arbitrarily or for reasons unconnected to a public purpose or which do not advance a public interest. Further, expropriation may not occur absent an attempt to reach a settlement with the owner or holder of a property right on reasonable terms. As such, the state is required to enter into negotiations with landowners and attempt to conclude an agreement on acquiring land before resorting to expropriation.
In instances where property is required on an urgent basis, the Bill empowers an expropriating authority to utilise it temporarily, provided said use does not exceed 12 months.
Importantly, the Bill incorporates provisions for the referral of disputes for mediation and determination by a competent court.
In the wider context of immovable property, however, what does the Bill ultimately mean for homeowners, prospective purchasers, and the real estate industry? With the introduction of various changes to the legal framework governing expropriation, including the possibility of expropriation without compensation, should you be concerned?
For a sound explanation of the provisions and broader objectives of the Bill, join seasoned knowledge lawyer, Maryna Botha, in a special webinar on Tuesday, 28th January 2025 at 15h30 — 16h30, as she unpacks the practical implications of this new law.
Don’t miss out on this informative and critically important discussion. Register now!
*At the time of writing, the Bill had not yet been published in the Government Gazette.
