If you use your legitimate income to compensate others for personal injury because of your own fault. That's a legal and reasonable form.
As a kind of civil tort, his illegal demolition behavior led to the death of the old lady. Then he should make corresponding compensation, and it is only a matter of form to lose the house or money. So, for his behavior of sending a house. No problem.
As for the confiscation of houses by the state:
If you know the property law, the ownership of the house belongs to the property right registrant. So in this case: they own property, which is actually ownership.
If Chen Sifu says that some suspected illegal acts should be borne by himself. Has nothing to do with property rights.