Real Estate Investor Magazine South Africa November 2014 | Page 18

cover story
FURTHER LEGISLATION THREATENING
PROPERTY RIGHTS
1) The National Development Plan aims to transfer of 20% of
the agricultural land in a district to black recipients, at only
50% of the value as determined by the state (in terms of the
Property Valuation Bill).
2) The verdict of the Constitutional Court in April 2013 in
the case of AgriSA v the Minister of Minerals and Energy
distinguishes between “deprivation” and “expropriation”.
After the verdict, the state is able to dispossess and
redistribute property, as long as the state does not assume
ownership of the property and act only as custodian.
3) The Green Paper on Land Reform aims a radical redesign
of property rights, with inter alia a type of freehold on land
which will drastically limit the rights of owners. Within this
context a Land Management Commission is proposed, which
will have discretionary powers regarding disputes over title
deeds.
4) The Expropriation Bill poses that expropriation may be used
for the public interest and public goal. The Bill is not only
applicable to land but will cover all types of property. Public
interest and public goal are determined in an ad hoc manner
and both have restitution as aim.
5) The Promotion and Protection of Investment Bill allows
state intervention in investment processes. The Bill explicitly
provides for expropriation of any property used for
commercial purposes at less than market value.
6) The Infrastructure Development Bill aims to eliminate
so-called inequalities in infrastructure. The Presidential
Infrastructure Co-rdinating Commission is granted the
authority to expropriate in the public interest and for the
public good.
7) The Spatial Planning and Management of Land Use Act
aims at centralised planning of land ownership. It proposed
so-called spatial justice by integrating low and high cost
housing in residential developments.
8) The Extension of the Security of Tenure Amendment Bill
expands the rights of occupants and their dependents.
Evictions are strictly controlled and the Amendment Bill
means a significant loss in control over property.
9) The Rental Housing Amendment Bill proposes stricter
regulation of the rental property market. Rental Tribunals
will hear disputes and will be able to determine rental
increases.
10) The National Water Amendment Bill and Policy Review
prohibits the trading of water rights and proposes a use-itor-lose-it principle for water rights. Equality (including racial
transformation) becomes the criterion for the allocation and
re-allocation of water rights.
Source: AfriBusiness
18

November 2014 SA Real Estate Investor

leaders over land use in former homelands, which is
preventing development and productive use.
Not all is lost. In October, a new framework for
land reform, created by a task team and several
affiliated organisations, was tabled at Agri SA’s annual
conference, based on constitutional and economically
feasible principles and the National Development Plan.
Agri SA said Minister Nkwinti made a commitment to
consider the proposals and to work with the sector.
The real issue
Nevertheless, there is a more concerning underlying
issue: a web of legislation posing a dangerous threat to
the property rights of South African citizens. It is not
only land restitution legislation threatening property
rights. In fact, property rights are under fire from all
sides in South Africa.
Economist, Dawie Roodt, notes the most [\ܝ[