Land Acquisition on Just Terms

With the State Government seeking to acquire Land either by negotiation or resumption in our area, it is worth considering the law relating to this. 

The NSW Land Acquisition (Just Terms Compensation) Act, 1991 was introduced by then State Liberal/National Government to prevent Land resumptions without compensation by the State Government. 

Section 55 of that Act provides the heads of compensation: 

(a) the market value of the land on the date of its acquisition

(b) any special value of the land to the person on the date of its acquisition

(c) any loss attributable to severance

(d) any loss attributable to disturbance

(e) the disadvantage resulting from relocation

(f) any increase or decrease in the value of any other land of the person at the date of acquisition which adjoins or is severed from the acquired land by reason of the carrying out of, or the proposal to carry out, the public purpose for which the land was acquired. 

Some of these heads of compensation might not apply in each case, but the first step would be to get a Registered Land Valuer (who is familiar with the Act) to provide a comprehensive Valuation report on these heads of compensation. It is important to remember Valuations are opinions and Valuers often differ in how they arrive at their valuation. 

You will also need (as part of that first step) a lawyer to advise you and undertake the legal work involved. It is worth noting that loss attributable to disturbance includes legal costs, valuation costs, financial costs, stamp duty, mortgage costs as well as other things so you are not out of pocket. 

Most acquisitions are negotiated to a successful conclusion but if there is no agreement, then taking Court action is the only alternative. 

Also it is important to know that the Commonwealth Government under the Federal Constitution may acquire any property (including Land) but on Just Terms

Compulsory acquisitions are a very complex area of the law and you may need our help. 

For further information contact us.

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