G&B Lawyers: Compulsory Acquisitions – Have you been put on notice?

Monday, 25 July 2016

Compulsory Acquisitions – Have you been put on notice?

Government authorities, such as Local Council or the NSW State Government, are able to acquire privately owned land for public purposes.

Recent public examples in NSW include compulsory acquisitions of both residential commercial properties for the construction of WestConnex and the Sydney Metro.

If current headlines are true, the Sydney Motorway Corporation Pty Limited, the body responsible for delivering the WestConnex motorway is on the verge of announcing that further homes and businesses will need to be acquired for the project as it expands.

Homeowners who may have been just on the brink of having their homes acquired, may now find themselves issued with a Proposed Acquisition Notice.

Aside from acquisitions due to major government projects, there are other examples that may hit more closely to home when a Local Council acquires a property for the purposes of performing its functions such as upgrading the sewerage and stormwater drainage facilities in an area. These acquisitions can be equally as surprising and distressing.

What’s the process?

Once an authority has decided to acquire a property, the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) provides the mechanism for determining the amount of compensation to be paid to a landholder.

This Act must be complied with.

Usually, an agreement is sort to be reached between the Landholder and the Acquiring Authority first.

Where this is not possible, the acquiring authority has the power to compulsorily acquire the land for a public purpose.

Where land is to be compulsorily acquired, the Valuer General is responsible for independently determining the amount of compensation payable by the Acquiring Authority.

To assist the Valuer General, both parties generally obtain independent valuations by experts to support their side. Depending on the type and location of the property, the number of experts may range from one real estate valuation to numerous opinions from experts such as accountants, engineers and environmental scientists.

Getting the right advice

Obtaining advice from an experienced lawyer is essential for maximising ones claim.

An experienced lawyer will be able to provide guidance to ensure that an experienced valuer is retained. It critically important that you use a valuer who is capable of preparing a robust valuation that will be difficult for the acquiring authority to refute.

An additional benefit is that reasonable legal costs and expert costs are likely to be paid by the Acquiring Authority.

You can then use the services of seasoned professionals with the peace of mind that you will be obtaining more than the initial offer made by the Acquiring Authority without professionals taking a large cut.

If you have been issued with a Proposed Acquisition Notice or want to know more about the process, please contact Kim Glassborow, Partner at G&B Lawyers on M: 0481 287 528 or kglassborow@gandblawyers.com.au for professional and experienced advice.