Venezuelan president Nicolas Maduro proves once again the capacity for stupidity is virtually unlimited.
Today Maduro mandated that any properties leased for 20 years or longer will be sold to current tenants at government mandated prices, essentially confiscating all long-term rental properties.
Via translation from Libre Mercado, please consider Venezuela Expropriates Properties Leased More Than 20 Years.
Nicolas Maduro, president of the Republic of Venezuela decreed on Monday that properties leased for 20 years, will be sold to their tenants in a maximum period of 60 days. The National Superintendent of Housing says the lease countdown began on March 28.
In the event that the property owners refuse to sell their property, the Superintendent of Housing will impose a fine of 29,000 euros, which must be paid within five days. If the penalty is not paid in 5 days, the fine will more than double to 60,000 euros.
Property owners are totally defenseless, as buyers may propose bargain prices. Nonetheless, owners shall comply with the “fair value of the dwelling” determined by the government via a form which shall provide, among other things, photographs of both the housing and the façade.
Once completed, the owner must wait for the government determined “right price” estimated by the superintendent for housing.
Wow. What’s next?
Mike “Mish” Shedlock