The threat of expropriation without compensation is closer than you think

Lew Skannen

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#1
https://www.news24.com/Columnists/G...ompensation-is-closer-than-you-think-20190123

Contrary to more naïve opinion, the South African government is quite close to the point where it could begin seizing property without compensation.

There are twin processes at play here, and their implications extend beyond farms and agriculture to threatened seizures of pension funds and even the economy itself. The manner in which those two processes play out will be important in determining your odds of living in a free and open and ultimately prosperous society.

The twin processes are as follows:

1. The municipality will investigate a property it plans to expropriate, for which purpose it can enter the property either with the consent of the owner or with the backing of a court order.

2. The municipality will then serve on the owner a notice of intention to expropriate and ask for further information, plus invite representations on the proposed expropriation and the compensation offered.

3. The municipality will consider those representations (but will need not respond to them);

4. The municipality will then issue a notice of expropriation, under which both ownership and possession will pass to it on the dates set out in the notice. These dates can be set for very soon after the notice of expropriation has been served (the only time limit on the date on which ownership passes is that it can't be set for a day before the notice of expropriation has been served).

5. Property owners can go to court to challenge the amount of compensation offered (which is likely to be roughly half of market value, on the valuer-general's formula, and sometimes even less) and also the constitutionality of the expropriation (whether it is truly "in the public interest", for example). However, most people will lack the means for such legal challenges and will find them particularly difficult to mount if they have already lost ownership and possession of their properties.

6. Property owners will also have the right to object (on administrative justice grounds) if the time between the service of the expropriation notice and the passing of ownership and then of possession is unreasonably short. In practice, however, most people will also lack the means for this kind of legal challenge.

7. Where the property expropriated includes a person's home, there is no obligation on the expropriating authority to seek court approval for the eviction that will occur when the right to possess the house passes to the municipality.
 

Lew Skannen

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#3
I can see a lot of houses being burned down for insurance money.
What other options will you be left with?

Not a bad idea though, while insurance companies are still able to settle claims. Take the money and start afresh abroad.
 

dj2381

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#4
What other options will you be left with?

Not a bad idea though, while insurance companies are still able to settle claims. Take the money and start afresh abroad.
Yeah I think many people will have this idea, I see the insurance companies with a massive backlog of claims investigations coming in the near future.
 

dj2381

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#8
How are the banks going to deal with the mass amounts of non payments on bonds? I don't see anyone going yeah I'll keep on paying for something that's not mine anymore lol
 

ambroseg1

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#11
How are the banks going to deal with the mass amounts of non payments on bonds? I don't see anyone going yeah I'll keep on paying for something that's not mine anymore lol
If you are permanently employed, it is as simple as getting a judgement and garnishing wages.
 

The Free Radical

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#12
How are the banks going to deal with the mass amounts of non payments on bonds? I don't see anyone going yeah I'll keep on paying for something that's not mine anymore lol
They already gearing up for a State bank.
They will use EWC and private bank collapses as a prelude to launch a State bank.
They see commercial banks as tools of white monopoly capital, and therefore the enemy.
They already gunning to grab the SARB right now.
Once that is under commie comrade control, say byebye SA.
It will be like pulling out the central support pole in a circus tent.

Communists will stop at nothing, until there isn't blade of grass left.
In one hand they have their book of hate and victim-hood, and the other the begging bowl.
 
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ambroseg1

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#14
Wouldn't the bond be linked to the property which is then no longer in your name?
According to the banks no. The property is merely security. So just like a car loan, if your write off the vehicle and insurance refuses to pay, you are still ultimately liable. It sucks I know. And I don't agree with it. But who of us here have hundreds of thousands of rands lying around to make a scumbag lawyer rich trying to challenge the banks in court?
 

Mista_Mobsta

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#15
Finally an article that sheds some light on why the ANC and cadres are trying desperately to nationalise the SARB! Have said it before and will say it again...if they control the SARB, they control one of the Twin Peaks regulatory arms and can dictate legislation that paves the way for prescribed investments.
100% true they are running out of money...luckily they are only allowed to touch the government pension funds whilst private funds remain private.
What happens to all the investment houses when people make a run for their money? Pension/RA/Provident etc all go bye bye. Banks will implode as people demand their savings whilst banks lend on the fractional-reserve basis and won't have the funds to deliver.

Worst case scenario above but it has happened to the banks in the past. PIGS (not talking about politicians here people)
 

Arthur

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#16
Wouldn't the bond be linked to the property which is then no longer in your name?
No.

Loans are taken by and granted to persons (natural or legal), not things.

You are liable for your debts, which are quite distinct from the security offered.

That is at it should be.

The threat that government theft poses to our entire legal system is grave.
 

Lew Skannen

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#18
How are the banks going to deal with the mass amounts of non payments on bonds? I don't see anyone going yeah I'll keep on paying for something that's not mine anymore lol
The banks have big problems. Legally they have no way out of this. If you look at the agreements with all banks, the description of the property you buy include both the land and the property/structures located on it. In addition to this, there is a clause dealing with expropriation with compensation, and no clause dealing with EWC.

So, if you lose your land or property due to third-party actions, there is no way any bank can keep you legally obligated to the agreement, as there is now a breach of the agreement you entered into with the bank. You can walk away without paying a single cent any further.

Yes, the banking sector will collapse in total, but then again, the ANC never hidden the fact that they are unhappy with banks and want to do away with them resorting to a single state bank.
 

Lew Skannen

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#19
No.

Loans are taken by and granted to persons (natural or legal), not things.

You are liable for your debts, which are quite distinct from the security offered.

That is at it should be.

The threat that government theft poses to our entire legal system is grave.
This is where a few legal experts failed. It is not a loan, nor is it a personal loan. When you look at your bond agreement, it specifically states what the agreement is for. It describes the property, as well as the land it is situated on. They will not get past this mere legal fact. Banks in Zimbabwe in the early 1990's found out the same. Not a single bondholder was held liable civilly for the debt after the government expropriated farms without compensation.

Your point about a 'loan' is something banking legal reps are going to try and test in courts. But, they are likely not to succeed.
 

dj2381

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#20
I can see the rental market picking up quite a bit, I've thought about it myself, sell now and rent and wait it out.
 
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