property acquisition - a guide for residential owners · 2. property valuation, compensation and...

Property AcquisitionA guide for residential owners

Contents

1. Property acquisition in NSW 3

Investing in infrastructure 3

Deciding which properties need to be acquired 3

What happens if you are affected by property acquisition? 4

Your acquisition support team 4

How the formal acquisition process starts 6

2. Property valuation, compensation and agreement 9

How your property is valued 9

Getting your own valuation 10

Valuer qualifications 10

Compensation 10

Negotiation and agreement on your compensation 12

Your Letter of Offer 12

Once an agreement has been reached 12

Relocation support 13

Send in your feedback 13

3. If an agreement can’t be reached 15

Compulsory acquisition 15

What happens next? 15

Who determines the compensation payable? 16

The Valuer General 16

Accepting the compensation notice 16

4. Partial acquisition of property 19

How partial property acquisition is valued 19

Requesting that all of your property to be acquired 19

Property adjustments 19

5. Property acquisition by agreement – what to expect 21

6. Compulsory property acquisition – what to expect 24

7. Definitions 27

8. Contacts and services 29

A guide for residential owners | 1

2 | Property Acquisition

1. Property acquisition in NSW

NSW is home to many thriving communities in a range of busy cities and diverse regional areas. We also have the fastest growing population in Australia, which will increase to more than 9 million people by 2036.

Investing in infrastructure

A growing population means we need more schools, hospitals, roads and public transport to meet the needs of our local communities. That’s why billions of dollars are being invested in infrastructure to provide people with access to quality services.

When the government decides to build a new project, like a new road or hospital, it instructs the relevant agency to investigate the best route or location.

In NSW, state agencies and other organisations (such as utility companies) can acquire property for a public purpose.

The acquisition process is governed by the Land Acquisition (Just Terms Compensation) Act 1991 (the Act).

Deciding which properties need to be acquired

Consultation is usually carried out with the community as part of the development of a major project.

Once a preferred design, route or location for the project is decided, the agency responsible – the acquiring agency – may identify properties that need to be acquired to deliver the project.

This guide explains the property acquisition process for owners of residential property that is being acquired. It’s designed to help you understand what to expect during this process and the assistance available. It is not intended to replace legal or expert advice.


What happens if you are affected by property acquisition?

If your property is identified for proposed acquisition, a representative from the acquiring agency will contact you.

The representative will arrange a meeting to discuss the process in more detail.

You will also be sent an Introductory Letter, which will formally notify you of the proposal to acquire your property.

This letter will include information about the acquisition process.

Your acquisition support team

To help you through the process, the acquiring agency will provide you with an acquisition support team.

The team can give you practical advice to suit your circumstances. It can include a Personal Manager, Acquisition Manager and, on some projects, a Community Place Manager.

The acquiring agency provides your support team for free.

Personal Manager

• Acts as your primary point of contact and provides a personalised service to meet your needs and those of your household.

• Meets with you to understand your requirements, relocation needs and expectations.

• Ensures your personal information is kept confidential.

• Provides advice and assistance to help you with your relocation.

Acquisition Manager

• Explains the acquisition process and the steps needed to determine your compensation.

• Instructs an independent valuer to determine your compensation.

• Arranges all meetings between valuers and provides expert advice.

• Negotiates with you to help reach an agreement on compensation.

• Prepares all necessary paperwork, including a Letter of Offer and the contracts for settlement.

Community Place Manager

Community Place Managers often work on major projects. They are your key point of contact for project-related information and can answer questions about construction work.


Your acquisition

support team will help you through the

process.


How the formal acquisition process starts

You will receive an Opening Letter that marks the start of the negotiation period. You will have a minimum of six months to reach an agreement on compensation with the acquiring agency. This minimum period can be shortened in certain circumstances under the Act.

The Opening Letter

• Provides you with the name and contact details of the acquiring agency and your acquisition support team.

• Explains that the acquiring agency will arrange for an independent valuer to inspect your property and carry out a valuation at a time that’s convenient for you.

• Recommends that you engage your own independent valuer and informs you that reasonable fees for this service will be paid by the acquiring agency on settlement.

• Explains that the acquiring agency will submit a formal offer to acquire your property, based on the valuation and discussions with you.

• Advises that you are entitled to get legal advice about the acquisition, and that reasonable fees will be paid by the acquiring agency on settlement.

You will have at least six months from when you

receive an Opening Letter to reach an

agreement with the acquiring agency on

compensation.


Your own independent advice

It is recommended that you get your own advice from an independent valuer and a lawyer. It is important that you remain informed and in control of your own decisions during the process.

A lawyer can help you understand your legal rights and reach an agreement with the acquiring agency on any compensation you may be entitled to.

You can talk to your acquisition support team at any time, including while your lawyer is representing you.

Foreign residents who own property

The federal government imposes a tax on foreign residents who own Australian property. If you are a foreign resident whose residential property is being acquired, this may impact you.

For more information, ask your lawyer, visit ato.gov.au or call 13 72 26.

For advice on finding a lawyer, contact the NSW Law Society on 02 9926 0333 or visit lawsociety.com.au

For advice on independent valuers and their professional practice, contact the Australian Property Institute on 02 9299 1811 or visit api.org.au


2. Property valuation, compensation and agreement

During the acquisition process, the acquiring agency will instruct an independent valuer to inspect your property.

How your property is valued

The valuer will determine the market value of your property.

Market value is the amount that would have been paid for the property if it had been sold on the open market, if the proposed project or public purpose did not exist. It considers:

• the size of your property

• the location

• the quality of improvements

• zoning

• recent sales in the area

• pest and building inspections.

The valuation report

A valuation report is prepared by the valuer and should contain:

• a date of valuation and a date of inspection

• areas, dimensions and legal particulars of the property – such as any legal constraints that would restrict development

• a description of any improvements – such as a house, pool or other structures

• a site plan showing the position of improvements in relation to boundaries

• an accurate floor plan

• a specific list of inclusions

• an outline of permitted land use under the current relevant planning instrument and/or local government codes

• a description of the class of land valued and the current or potential use of the land together with its location

• details of the sales/rental information used to inform the valuation, together with analysis and calculations

• property sales evidence

• valuation rationale

• the rental value of the property

• details of any people, companies or businesses that occupy the property.

A valuation report should be signed by the valuer who undertook the report and:

• disclose how the valuer complies with the requirement under the Act

• contain the following statement: ‘I have been engaged and am acting in the capacity of an expert and not as an advocate for the owner or the instructing party’.


Getting your own valuation

It is recommended that you have your own valuation carried out by an independent valuer.

Your own valuation can also assure you that the market value of your property has been independently assessed in line with market conditions.

If the local market is fluctuating, your valuer and the acquiring agency’s valuer will consider this when reaching an agreement.

Have a discussion with the acquiring agency about valuation fees before you engage your own valuer.

When the acquisition is settled, the acquiring agency will pay the agreed valuation fees, as long as:

• the valuer is appropriately qualified

• the valuation report contains the contents described on page 9

• the valuer discusses their valuation report with the acquiring agency’s valuer

• a copy of the final report is signed by the valuer.

If you need to engage other services, such as accountants, town planners or surveyors, it is recommended that you first get written approval from the acquiring agency that it will pay these costs.

Valuer qualifications

An appropriate valuer must have one of the following qualifications:

• full member of the Australian Valuers Institute (not an associate or student member)

• full member of the Australian Property Institute (not a student or provisional member), obtained because of their occupation as a valuer

• full member of the Royal Institution of Chartered Surveyors as a chartered valuer.

Compensation

You may be eligible for the following types of compensation:

1. Market value of your property

Market value is the amount that would have been paid for the property if it had been sold on the open market, if the proposed project or public purpose did not exist.

2. Special value

Special value applies when a property has a financial value on top of the market value. Speak to your Acquisition Manager for more information.

3. Severance

Compensation for severance is only applicable if part of your property is being acquired. It generally applies when an acquisition severs part of a property and as a result, the remaining property may incur a reduction to its market value.

By getting an independent valuation early, negotiations can begin quickly and you’ll have more time to find a new home.


4. Disturbance

Compensation for disturbance may include any or all of the following:

• reasonable legal costs

• reasonable valuation fees

• reasonable relocation costs

• reasonable stamp duty costs in connection with buying a new property for relocation

• reasonable financial costs in connection with the discharge of a mortgage and the execution of a new mortgage

• other reasonable financial costs related to the actual use of the property as a result of the property acquisition.

5. Disadvantage resulting from relocation

Compensation for disadvantage resulting from relocation considers:

• your interest in the property

• the length of time you have lived in the property (and in particular whether you are living in the property temporarily or indefinitely)

• the inconvenience likely to occur

• the period after the acquisition that you have been – or will be – allowed to remain in possession of the property.

6. An increase or decrease in the value of other property

This compensation only applies when a part of your property is being acquired. It considers any change in the value of other property that adjoins or is severed from the property being acquired.

The compensation will be adjusted if the change in value is caused by the public purpose that the property was acquired for; for example, building a road or hospital.


Negotiation and agreement on your compensation

Once you have your own valuation report, your Acquisition Manager can organise an exchange of reports between the valuers.

Your Acquisition Manager will organise to meet with you and both valuers to discuss the valuations and try to reach an agreement on your compensation. This may involve one or more meetings where each valuer will present the evidence that they based their valuation on.

The meetings can be informal and may be held in person or by phone. They can be held at your home or another location convenient for you.

You may ask your Personal Manager to attend the meetings with you. However, they will not take part in the actual negotiations.

Your Letter of Offer

Once your valuation and the acquiring agency’s valuation have been completed, the acquiring agency will prepare your Letter of Offer.

The Letter of Offer will include details about any compensation you are eligible for, including the market value of your property.

The offer will be based on information from the acquiring agency’s valuation report and your discussions.

Once an agreement has been reached

If you accept the offer, you and the acquiring agency will start the conveyancing process. This will be similar to a property sale in the open market except that an acquiring agency lawyer prepares the contracts.

The acquiring agency may make an advance payment of compensation to you to help with your deposit on a new property. Discuss this with the acquiring agency before legally committing to a new property.



Relocation support

Once an agreement is reached, you will be able to discuss the date of settlement, which is normally the date you need to vacate the property.

Your Personal Manager can provide you with tailored support and guidance for relocating to a new home. Speak to your Personal Manager about what help they can offer you.

The acquiring agency will also inspect the property on the date of settlement. This is to make sure it is vacant, has been left in an appropriate condition and all possessions have been removed.

Send in your feedback

At the end of the settlement period, the acquiring agency will invite you to complete a survey and give feedback on the acquisition process. The survey is handled by an independent research company on behalf of the NSW Government. It is confidential and anonymous.

Your suggestions will help to continually improve the acquisition process.


3. If an agreement can’t be reached

If you and the acquiring agency can’t reach an agreement on your compensation, the property may be acquired compulsorily under the Act. This process involves working with the Valuer General.

Compulsory acquisition

Following a period of negotiation (a minimum of six months from the date of the Opening Letter), the first official step in the compulsory acquisition process is for the acquiring agency to issue a Proposed Acquisition Notice (PAN) to the property owner.

This notice will state the acquiring agency’s intention to compulsorily acquire the property after a certain time. The period is usually 90 days. However, a shorter timeframe can be agreed to by the owner, or be approved by the appropriate Minister in certain circumstances.

You will need to complete a Section 39 Claim for Compensation form and include all information you would like the Valuer General to consider when determining your compensation. Complete the form within 60 days of receiving the PAN.

You can still continue negotiations and exchange contracts with the acquiring agency when a PAN has been issued.

Negotiations can continue until the Acquisition Notice is published in the NSW Government Gazette.

What happens next?

If contracts have not been exchanged within the 90-day notice period, the acquiring agency will arrange for an Acquisition Notice to be published in the NSW Government Gazette. This is referred to as the property being ‘gazetted’.

• Gazettal usually happens within 120 days of issuing the PAN.

• The acquiring agency officially owns the property from the date the Acquisition Notice is published in the NSW Government Gazette.

• Your legal interests in the property are converted to an entitlement to compensation.

You will be able to stay in the property for up to three months (without paying rent) to give you time to find a new home, unless the acquiring agency needs it to be vacated earlier. Talk to your Acquisition Manager for further details.

You need to complete a Section 39 Claim for Compensation form within 60 days of receiving the Proposed Acquisition Notice.


Who determines the compensation payable?

The Valuer General determines the amount of compensation.

The Valuer General is appointed by the NSW Governor, is independent of both state and local government and does not act for the property owner or the acquiring agency.

The Valuer General

The Valuer General will:

• carry out their own valuation in line with the Act

• meet with you or your representative to discuss the valuation and address any issues or concerns

• share all information being considered for the valuation report with the parties involved – this includes information provided to the Valuer General by the resident and the acquiring agency, and any information sourced directly by the Valuer General

• issue you with a Preliminary Valuation Report showing the amount of compensation and how it was determined

• speak to you and the acquiring agency and seek further information from you

• issue a determination of compensation including their independent valuation of the property to you and the acquiring agency.

The acquiring agency will issue you with a compensation notice, which includes the compensation amount determined by the Valuer General.

For more information about the Valuer General, visit valuergeneral.nsw.gov.au

Accepting the compensation notice

If you agree with the compensation notice, you will need to complete a Deed of Release and Indemnity and return it to the acquiring agency.

The compensation will be paid within 28 days of receiving the Deed of Release and Indemnity and any other required documents.

If you don’t accept the determination

If you disagree with the compensation notice, you are entitled to lodge an objection with the NSW Land and Environment Court.

The objection must be lodged within 90 days of the compensation notice being issued to ensure the Court will hear the objection and determine the amount of compensation to be paid. As the applicant, you must also give the acquiring agency notice that you have begun proceedings in the NSW Land and Environment Court.

If you disagree with the Valuer General’s compensation notice, you are entitled to lodge an objection with the NSW Land and Environment Court.


Advance payments while the Court proceedings are under way

If you have received a compensation notice from the acquiring agency, it will pay you 90 per cent of the amount of compensation offered in that notice within 28 days after it has been notified of the NSW Land and Environment Court proceedings. However, accepting the advance payment does not mean you are accepting the offer of compensation.

The acquiring agency will also pay interest on the advance for the period from the date the Acquisition Notice was published in the NSW Government Gazette to the date the advance is paid.

If you don’t accept the advance, the advance and interest will instead be deposited into a trust account pending the NSW Land and Environment Court’s decision.

The NSW Land and Environment Court

The Court will hear evidence from you and the acquiring agency about your entitlement to compensation claims.

As part of the mediation process, the NSW Land and Environment Court will formally encourage you and the acquiring agency to meet ahead of the hearing to try and resolve the compensation without requiring a full hearing.

For more information about the NSW Land and Environment Court, visit lec.justice.nsw.gov.au


4. Partial acquisition of property

Sometimes only part of a property will need to be acquired. In this situation, the acquiring agency will provide you with a plan of the required partial acquisition. It will also include the proposed new boundary as a result of the partial acquisition and identify the likely dimensions and area of the part of the property that’s needed.

How partial property acquisition is valued

The most common way a partial property acquisition is valued is by using a ‘before and after’ method where:

• the value of the total property, as unaffected by the project proposal, known as the ‘before valuation’ is determined

• the value of the remaining property assuming the acquisition has occurred, is also determined. This is known as the ‘after valuation’

• the difference between the ‘before’ and ‘after’ valuations is the compensation payable by the acquiring agency.

Requesting that all of your property to be acquired

Sometimes the acquiring agency will acquire the whole property, even though only part of it is needed for a proposed project.

You may request that the acquiring agency acquire your whole property. The decision is at the discretion of the acquiring agency.

Property adjustments

When part of a property is acquired, the acquiring agency will discuss with you and agree on what property adjustments are needed as a result of the acquisition, such as changes to driveways or fencing.


We’re here to help you

through every step of the

process.


5. Property acquisition by agreement – what to expect Initial consultation and contact period

Key stages1

Project announced

Community information sessions and public announcements will inform you about the project plans.

What you can do

• Check websites, your mailbox, local newspapers and local signs for project information.

• Attend community information sessions.

2

The acquisition agency will contact you

If you are directly impacted and your residence is being acquired, you’ll be provided with a Personal Manager. This person will guide you through the acquisition process.

Your Personal Manager will try to meet with you face to face to:

• confirm that your property needs to be acquired

• introduce the acquisition support team

• explain the process.

You will also receive an Introductory Letter as part of this process.

If your Personal Manager has been unable to reach you face to face, they will send you an email or letter.

What you can do

• Make a list of questions you would like to discuss.

• Be available to meet with your Personal Manager.

3

A meeting about the process

Your acquisition support team will arrange to meet with you to discuss the next steps.

They’ll give you more information about the acquisition process and relocating, and help you with any concerns.

What you can do

• Talk to your Personal Manager about the acquisition process and ask them questions.

• Talk to your Acquisition Manager about how to select an independent valuer and lawyer.

The minimum six-month negotiation period starts when you receive the Opening Letter

4

You’ll receive an Opening Letter

This letter will:

• confirm the name and contact details of your Personal Manager and Acquisition Manager

• explain the property acquisition process, along with your rights and obligations

• explain that the acquiring agency will arrange a valuation of the property by an independent valuer

• encourage you to also get your own property valuation carried out by a valuer and to seek legal advice. You will be compensated for reasonable valuation and legal fees by the acquiring agency at settlement.

Once the Opening Letter has been received, the start of the minimum six-month negotiation period to reach an agreement on compensation begins.

What you can do

• Note any key dates or questions you have.

• Discuss next steps with your acquisition support team.

5

Valuation reports

An independent valuer will inspect your property on behalf of the acquiring agency to determine its market value.

Your own valuer should also prepare a valuation report on your behalf.


What you can do

• Research valuation and legal services.

• Seek legal advice.

• Arrange an independent valuation of your property.

• Submit your valuation to the acquiring agency.

6

Receiving an offer

Once the acquiring agency’s valuation has been completed, it will provide you with a Letter of Offer.

This offer will be based on information from the acquiring agency’s valuation report and your discussions. It will include compensation for the market value of your property and other compensation you may be eligible for.

What you can do

• Discuss next steps with your Personal Manager.

• Seek independent legal advice on the details of the offer, if you want to.

7

Reaching an agreement

By this stage, the valuers will have exchanged valuation reports.

Your Acquisition Manager will organise to meet with you and both valuers to try to reach an agreement on compensation.

This may involve one or more meetings where each valuer will present the evidence their valuation is based on. You are welcome to attend these meetings.

Note: The actions listed in stages 6 and 7 may occur in a different order, depending on the particular circumstances.

What you can do

• Ensure you are available for meetings.

• Consider the acquiring agency’s offer.

• Seek legal advice before you formally accept the offer, if you want to.

8

Agreement reached and relocation

Once an agreement on compensation is reached, the Acquisition Manager will arrange for contracts to be prepared and sent to you or your lawyer.

Contracts will be exchanged and a date for settlement will be agreed on.

You will be paid the agreed compensation and the property will be transferred to the acquiring agency.

Your Personal Manager will help with your relocation needs, if required.

The acquiring agency will invite you to complete a survey and give feedback on the acquisition process.

What you can do• Be prepared to sign any

necessary documents.

• Work with your Personal Manager on your relocation and timelines.

You can talk to your acquisition support team at any time, including while your lawyer is representing you.

A guide for residential owners | 2321 | Property Acquisition

6. Compulsory property acquisition – what to expectYou have 90 days to reach an agreement

Key stages1

You’ll receive a Proposed Acquisition Notice

If you have not reached an agreement on compensation with the acquiring agency, you will be sent a Proposed Acquisition Notice (PAN), and the Valuer General becomes involved.

This notice will state the acquiring agency’s intention to compulsorily acquire the property after a certain time.

You will have the opportunity to lodge your own claim for compensation with the Valuer General.

You have 60 days from receiving the PAN to lodge your Section 39 Claim for Compensation form.

Your Claim for Compensation form will ensure your interests are recorded and the Valuer General can take them into consideration.

What you can do

• Complete the Section 39 Claim for Compensation form available at propertyacquisition.nsw.gov.au and include all information you would like the Valuer General to consider when making the determination of compensation.

• Continue to try to reach an agreement with the acquiring agency.

• Seek advice from your lawyer and acquisition support team on the compulsory acquisition process.

2

Negotiations continue

Negotiations between you and the acquiring agency can continue and an agreement can still be reached after a PAN has been issued.

The Valuer General will send you a letter explaining their role and informing you that work will begin on their determination.

An independent valuer will make a new valuation for the determination of your compensation, on behalf of the Valuer General.

What you can do

• Note the timelines outlined in your letter from the Valuer General.

• Provide any information requested of you in a timely way.

3

Your property will be acquired

If an agreement still isn’t reached, the acquiring agency will compulsorily acquire your property.

The acquiring agency will publish a notice in the NSW Government Gazette, meaning:

• the NSW Governor has approved the acquisition

• following Gazettal, the Valuer General will determine the compensation owed to you

• the acquiring agency becomes the owner of the property.

You will be able to stay in the property for up to three months (without paying rent), unless the acquiring agency needs it to be vacated earlier.

What you can do

• Continue to seek legal and valuation advice.

• Continue to remain in contact with the Valuer General.

4

Valuer General determines compensation

The Valuer General will review your claim and make a new assessment on the amount of compensation owing.

The determination is provided to both you and the acquiring agency for feedback and consideration before the final determination of compensation is issued.

5

You’ll receive a Preliminary Valuation Report

Following the NSW Government Gazette notice, the Valuer General will send you and the acquiring agency a Preliminary Valuation Report.

The report shows the amount of compensation and how it was determined.

What you can do

• Consider the Valuer General’s Preliminary Valuation Report and submit your feedback. This feedback will be addressed before the Valuer General issues the final determination.

You have 90 days to lodge an objection with the NSW Land

and Environment Court

6

You will receive a final determination

The acquiring agency will send you a compensation notice that will contain the Valuer General’s final determination.

If you agree with the compensation notice, you can be paid the compensation within 28 days, once the Deed of Release and Indemnity has been received by the acquiring agency.

You’ll also be paid interest earned on the compensation, calculated from the published date of the notice in the NSW Government Gazette.

What you can do

• Consider the acquiring agency’s compensation notice.

• Complete a Deed of Release and Indemnity and send it to the acquiring agency.

7

If you don’t agree with the final determination

If you don’t agree with the amount of compensation determined by the Valuer General, you can lodge an objection with the NSW Land and Environment Court.

You must lodge your objection within 90 days of receiving your compensation notice from the acquiring agency.

The Court will determine your compensation following the necessary proceedings.

What you can do

• Lodge an objection with the NSW Land and Environment Court within 90 days of the compensation notice.

The Valuer General’s determination is

independent of the acquiring agency’s offer and may be higher, lower or

the same.


7. Definitions

Acquiring agency

The NSW Government agency that can carry out property acquisitions.

Acquisition Notice

A notice under Section 19 of the Act, published in the NSW Government Gazette, declaring that property described in the notice is acquired by compulsory process.

Acquisition support team

A support team provided free of charge by the acquiring agency to help you through the property acquisition process.

Claim for Compensation form

A form to be completed by the property owner when making a claim for compensation under Section 39 of the Act.

Compensation Notice

A written notice under Section 42 of the Act, notifying former property owners of the amount of compensation offered by the acquiring agency (as determined by the Valuer General).

Compulsory acquisition

The process by which property is acquired by Acquisition Notice published in the NSW Government Gazette.

Deed of Release and Indemnity

A formal document that confirms the agreed compensation is the only compensation payable.

Disadvantage resulting from relocation

Financial compensation to a person for non-financial disadvantage, as a result of having to relocate their principal place of residence due to the property acquisition.

Disturbance

This may include legal costs, valuation fees, relocation costs, stamp duty, mortgage discharge and execution fees, and other financial costs reasonably incurred as a result of the acquisition process. These costs are set out in Section 59 of the Act.

Introductory Letter

The first formal contact from the acquiring agency to notify you of the proposal to acquire your property.

Land Acquisition (Just Terms Compensation) Act 1991 NSW (the Act)

The legislation that governs the process for acquisition of land in NSW and defines compensation entitlements, also referred to as the Act in this guide.

Letter of Offer

Once your valuation and the acquiring agency’s valuation have been completed, the acquiring agency will prepare your Letter of Offer. The Letter of Offer will contain an offer of compensation from the acquiring agency.

Market value

Market value is the amount that would have been paid for the property if it had been sold on the open market, if the proposed project or public purpose did not exist.


The following are disregarded in determining the market value:

• any increase or decrease in the value of the property caused by the carrying out of, or the proposal to carry out, the public purpose for which the property was acquired

• any increase in the value of the property as a result of the acquiring agency making improvements for the public purpose before the acquisition of the property

• any increase in the value of the property caused by its use in a manner or for a purpose contrary to law.

NSW Government Gazette

The official Government Gazette that is published weekly, in which official proclamations, orders, declarations and notices are published at legislation.nsw.gov.au

NSW Land and Environment Court

A specialist NSW Court that has the authority to hear claims for compensation arising from property acquisitions where the property owner disagrees with the Valuer General’s determination of compensation.

Opening Letter

A letter from the acquiring agency that marks the start of the minimum six-month negotiation period for you to reach an agreement with the acquiring agency. This letter will also include the contact details of your acquisition support team and information about the acquisition process.

Preliminary Valuation Report

A report issued by the Valuer General that shows the amount of compensation and how it was determined.

Property acquisition

Where the property is bought by agreement or compulsorily acquired under the Act.

Proposed Acquisition Notice

A notice, under Section 11 of the Act, of the intention to acquire property by compulsory process (commonly known as the PAN).

Severance

This generally applies where an acquisition severs part of an owner’s property and the remaining parcel or parcels lose market value as a result of the severance.

Special value

This applies where a property has a financial value in addition to market value. Special value represents the additional value the owner would be prepared to pay for the property, rather than lose the property.

The Act

An abbreviated term for the Land Acquisition (Just Terms Compensation) Act 1991 NSW.

Valuer General

An independent statutory officer appointed by the Governor of NSW. The Valuer General is required to independently determine the amount of compensation to be paid by the acquiring agency to the property owner when an agreement can’t be reached.


8. Contacts and services

Australian Property Institute Provides independent information on qualified valuers.

api.org.au 1800 111 274

Australian Taxation OfficeThe principal tax revenue collection agency of the Australian Government.

ato.gov.au 13 28 65

NSW Law Society Provides independent information on finding a lawyer.

lawsociety.com.au 02 9926 0333

Property Acquisition NSW Provides an overview of the property acquisition process.

propertyacquisition.nsw.gov.au [email protected]

NSW Government Gazette Publishes official notices issued by the NSW Government.

legislation.nsw.gov.au 02 9321 3333

Translating and Interpreting Service Provides interpreting services over the phone.

tisnational.gov.au 131 450

Valuer General Determines compensation claims independently.

valuergeneral.nsw.gov.au 1800 110 038


This document is available in other languages at propertyacquisition.nsw.gov.au/languages. You can also contact the Translating and Interpreting Service on 131 450 and ask for the Centre for Property Acquisition.

propertyacquisition.nsw.gov.au November 2019

propertyacquisition.nsw.gov.au/languages

property acquisition - a guide for residential owners · 2. property valuation, compensation and...

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