Market value not considered in fair price of expropriated property

The market value of a property will not be considered to determine its price, according to the Decree with the rank, value, and force of law for determining the fair price of real estate in cases of emergency expropriation for purposes of housing and habitability.

The Venezuelan president promoted the law under the Enabling Law and it was published in the Official Gazette number 39,945 on Monday.

Article 2 of this law states that "the fair price of a property is calculated based on the last property value as shown in the respective duly notarized deed." In the event that the deed has been authenticated "within a term of less than one year" following the "emergency" expropriation, "the penultimate recorded value will be considered as the base for calculation" of the fair value.

Article 3 of the text explains that "the value will be updated" as a function of three factors: the variation of the domestic price consumer index (DPCI), the monthly nominal interest rate on term deposits exceeding 90 days, and the average weighted nominal interest rate on loans.

But, the legal instrument clearly states that "the market price or value shall not be considered."

The law does not specify a term for paying compensation for expropriation of property, but article 5 stresses that "public workers and individuals are obligated to collaborate with the administrative authority responsible for the measures of urgent or temporary occupation" and "should meet" its requirements.

Translated by Alejandro Osio