Temporary Occupation & Expropriation in Venezuelan Law

Temporary Occupation by Force Majeure (Art. 59 LE)

In cases of force majeure or absolute necessity (fire, flood, earthquake, etc.), the state or municipality may temporarily occupy property. Compensation to the owner is due, considering the circumstances.

Transfer of Property During Expropriation (Art. 10 LE)

Property transfer during expropriation proceedings doesn't stop the process. The new owner assumes all obligations and rights of the previous owner. The real action is intent upon the good that is the case of expropriations, not interrupt the expropriation proceedings may not Prevent Its Effects

Release of Charges on Expropriated Property (Art. 11 LE)

No action can be taken on expropriated property after the expropriation judgment. Creditors can enforce their rights on the compensation amount. Payment or appropriation of the amount cancels any legal action on the property, transferring it free of limitations to the expropriating entity.

Expropriation vs. Confiscation

Expropriation involves compensation to the owner based on a valuation of the property. The owner can discuss the price and terms of payment.

Confiscation is forced and offers no compensation. It typically occurs due to liability, as outlined in Article 271 of the Venezuelan Constitution.

Novel Trends in Expropriation Law

Compensation for expropriated property must be in cash (Article 7, Number 4 of the Expropriation Act), unlike the repealed law that allowed payment through bonds or securities.