Real estate industry waits for Cape High Court ruling



The real estate industry is waiting with baited breath to see whether the Cape High Court will rule that the Department of Home Affairs has any legitimate grounds to appeal the court's recent decision to set aside the regulations accompanying the new Immigration Act. The case is due to be heard on Monday.When published earlier this year, the regulations sparked widespread debate in the business community and among property agencies and owners as well as prospective migrants to South Africa.They would have significantly increased the financial qualifications, as well as some application fees required of prospective migrants. The rather unusual situation at present is that the new Act applies but its regulations do not, as the Cape High Court's ruling was that the regulations of the previous Aliens Control Act would continue to apply.This is a result of two successful legal challenges by Cape Town law firm Eisenberg & Associates. These second of these cases has also effectively frozen the new Act's implementation, which was scheduled for 12 March. The Act was promulgated in May 2002 and ratified by Deputy President Jacob Zuma this year despite the facts that the regulations proposed by the Department had re-ignited a bitter row between the ANC and Home Affairs Minister Buthelezi, and that the regulations had already been set aside. Ian Slot, chairman of Seeff Western Cape's Licensees, says: 'We are understandably pleased that the Act's regulations have been set aside. They would have required financially independent foreign nationals (those without pension-type income) to prove a net worth of R20-million as well as to pay an application fee of R100 000 to obtain permanent residence in South Africa.'Retired foreign nationals seeking permanent residence from 12 March would have been required to prove either a pension-type income of at least R25 000 per month or a R15-million net worth. 'The new Act's criteria for permanent residence would thus have made it practically impossible for all but the most well-heeled foreign nationals to take up residence in South Africa.'Slot also believes the Department has no legitimate grounds for appeal and says a successful appeal would further undermine the democratic principle of public participation that was ignored when the regulations were drafted. 'The Department should take the regulations back to the drawing board instead of trying to circumvent Parliament and the democratic process, wasting the Court's time, and creating uncertainty among foreign property owners and prospective migrants. 'Article: Property24 News - for the latest real estate news, visit www.property24.co.za