I found the following statement with regard to the latest situation on Expropriation without Compensation. It confirms what I have always believed. I hope you find it helpful.
On top of the uncertainty of the 2019 elections, many property investors are also concerned about the threat of expropriation of land without compensation. The latest draft of the Expropriation Bill should allay buyers concerns with specific reference to the addition of the new section 12(3) (below) which provides for instances when it may be just and equitable for no compensation to be paid:
“It may be just and equitable for nil compensation to be paid where land is expropriated in the public interest, having regard to all relevant circumstances, including but not limited to:
- Where the land is occupied or used by a labour tenant, as defined in the Land Reform (Labour Tenants) Act, 1996 (Act No.3 of 1996);
- where the land is held purely for speculative purposes;
- where the land is owned by a state-owned corporation or other state-owned entity;
- where the owner of the land has abandoned the land;
- where the market value of the land is equivalent to, or less than, the present value of direct state investment or subsidy in the acquisition and beneficial capital improvement of the land.”
This clearly indicates that there is no threat to developments such as …………….. Estate or privately owned homes used as residences. Similarly, land can only be expropriated if it is in the public interest.
(I removed the name of the Estate as it is situated in the Southern Cape. The statement would however remain true – country wide).
Commercial farms in the area could remain cause for concern. I have no experience with Agricultural farm sales and am not qualified to pass comment.