It seems like
the NSW Government is on an acquisition frenzy casting a shadow over the future
of many property owners and business operators.
In particular,
a recent article in the Sydney Morning Herald indicated that of the 424
properties marked for acquisition, 111 properties were yet to be acquired for
the WestConnex project.
What can the
property owners in Sydney’s inner west expect if their property is chosen?
How does Compulsory Acquisition of Land
work?
1.
Taking
it right back to the beginning, plans for the extension, upgrade or creation of
new infrastructure are determined by the NSW Government. For example, the
WestConnex project for the extension of the M4 East motorway via underground
tunnels.
2.
Property
owners who have properties that lie within the area required to be used for the
project receive letters from an acquiring authority notifying them of the
following:
a.
Their
property is to be acquired;
b.
A
valuer will be appointed to value their property; and
c.
That
the property owner is entitled to engage an independent and registered valuer
to value their property.
This
letter is called a “Proposed Acquisition Notice”. In the case of WestConnex,
the acquiring authority was “WestConnex Delivery Authority”. It is always our
recommendation to obtain legal advice early.
3.
The
appointed valuers for the acquiring authority will conduct their valuation of
the property.
4.
Property
owners will then receive a letter of offer from the acquiring authority.
5.
If
the offer is not acceptable to the property owners, they can finalise their
valuation and submit a counter offer to the acquiring authority.
6.
Negotiations
between the acquiring authority and the property owners will then proceed.
7.
Where
agreement cannot be reached between the parties, the compulsory acquisition
process governed by the Land
Acquisition (Just Terms Compensation) Act 1991 begins.
8.
The
acquiring authority will make an application to the relevant government
minister for approval to compulsorily acquire the property. In the case of
WestConnex, the relevant minister was the Minister for Roads, Maritime and
Freight.
9.
Once
approved, notice of the compulsory acquisition will be published in the
Government Gazette at which date the property will become legally owned by the
acquiring authority.
10. Within the next 30 days, the acquiring authority
must give the property owners written notification of the compulsory
acquisition, advise the property owners of their entitlement to compensation as
well as the amount of compensation that has been determined by the
Valuer-General.
11. The property owners will then have 90
days to consider the offer and either accept the amount of compensation or
object to the amount of compensation via commencing proceedings in the NSW Land
and Environment Court.
12. If the property owners accept the amount
of compensation offered, they are required to enter into a Deed of Release with
the acquiring authority. The compensation will then be paid within 28 days of
the acquiring authority receiving the completed Deed of Release.
13. If the property owners decide to reject
the offer of compensation and commence proceedings in the NSW Land and
Environment Court, the property owners are required to give the acquiring
authority notice of the proceedings.
14. Where the property owner agrees, an
advance payment of 90% of the compensation offered will be paid to the property
owner within 28 days of the acquiring authority receiving notification. The
money is otherwise held in a trust account pending the decision of the NSW Land
and Environment Court.
15. After the acquiring authority has paid
90% of the compensation, it is entitled to vacant possession of the property.
16. Compensation will then be determined by
the NSW Land and Environment Court (or a higher Court such as the Full Court of
the Supreme Court of NSW where required). Factors that are to be taken into
consideration include:
a.
Market
value at the date of acquisition;
b.
Special
value incidental to the property owners use of the land;
c.
Loss
attributable to severance of land where appropriate;
d.
Disturbance
losses including relocation costs, legal fees and valuation fees; and
e.
Solatium
(i.e. compensation for non-financial disadvantage arising from the necessity to
relocate).
How can G&B Lawyers help you?
Property Owners
faced with the prospects of Compulsory Acquisition are permitted to obtain independent
legal and valuation advice in relation to the process and their entitlements.
The reasonable fees of the legal advice and valuation advice are covered by the
acquiring authority.
Property owners
should therefore have no hesitation in contacting G&B Lawyers for
assistance. G&B Lawyers are experts in compulsory acquisition negotiations
having been involved in compensation appeals in the NSW Land and Environment Court.
We will
assemble an experienced team of professionals to ensure that the property owner
is happy with the amount of compensation and with the outcome and will not walk
away out of pocket.
For an
obligation-free discussion, contact Kim Glassborow (Partner) on Mobile 0481 287
528 or Email kglassborow@gandblawyers.com.au
G&B Lawyers
Office: Suite 1, Level 1, 229 Macquarie Street, Sydney, NSW 2000
Mail: GPO Box 1849, Sydney, NSW 2001
M: 0481 287 528
E: info@gandblawyers.com.au
W: www.gandblawyers.com.au
Reference to
Sydney Morning Herald article: http://www.smh.com.au/nsw/cost-of-westconnex-property-acquisitions-set-to-exceed-15b-20160914-grg2zc.html
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