Compulsory Acquisition
Property Valuations
Sovereign Valuations is a market leader in the field of compulsory acquisition valuations, representing dispossessed parties, acquiring authorities and the Valuer General. The compulsory acquisition of land occurs when an authority requires an interest in land for a public purpose, which can include road widening, transmission lines, gas pipelines, drainage and many other forms of infrastructure.
Engaging a property valuation firm that is experienced in compulsory acquisition matters is a critical step to ensuring an adequate sum of compensation is achieved. Further to assessing the relevant heads of compensation, the property valuer must be able to articulate and defend their position within intensive conference and court settings.
We have provided compulsory acquisition advice for complex partial acquisitions of englobo industrial and residential development sites, institutional grade CBD properties, along with conventional commercial and residential holdings. Our recent engagements have included compensation assessments in excess of $100 million and have been across the following projects:
New Shellharbour Hospital Project and Integrated Services Project
Partial acquisition of Goulburn Court House
Various authority and private easements
Compulsory acquisition valuations are a specialised valuation field with our firm cognisant of the relevant legislative requirements set out in the Planning and Environment Act 1987 (VIC), Land Acquisition & Compensation Act 1986 (VIC) and the Land Acquisition (Just Terms Compensation) Act 1991 (NSW). Further to statute law requirements we are regularly updated with regards to case law outcomes, providing notable precedence for complex valuation matters.
Both the landlord and tenant can have a claim for compensation in a compulsory acquisition matter, noting the landlord has a freehold interest in the property and the tenant has a leasehold interest. Sovereign Valuations has experience in assessing both freehold and leasehold interests.
Land Acquisition & Compensation Act 1986 (VIC)
The Land Acquisition & Compensation Act 1986 (VIC) stipulates the following items of compensation are to be assessed:
Section 41 (1)(a) - the market value of the interest on the date of acquisition;
Section 41 (1)(b) - the special value to the claimant on the date of acquisition;
Section 41 (1)(c) - any loss attributable to severance;
Section 41 (1)(d) - any loss attributable to disturbance;
Section 41 (1)(e) - the enhancement or depreciation in value of the interest of the claimant, at the date of acquisition, in other land adjoining or severed from the acquired land by reason of the implementation of the purpose for which the land was acquired;
Section 41 (1)(f) - any legal, valuation and other professional expenses necessarily incurred by the claimant by reason of the acquisition of the interest.
Section 44 (1) - The amount of compensation may be increased by such amount, not exceeding 10% of the market value of the land, by way of solatium as is reasonable to compensate the claimant for intangible and non-pecuniary disadvantages resulting from the acquisition.
There are additional provisions within the Planning and Environment Act 1987 (VIC) that allow for ‘planning compensation’ to be claimed. There are many situations where planning compensation can be payable including but not limited to planning permit refusal, loss on sale, loss suffered from a proposed acquisition becoming public information, road closure and removal or amendment of a Public Acquisition Overlay.
Land Acquisition (Just Terms Compensation) Act 1991 (NSW)
The Land Acquisition (Just Terms Compensation) Act 1991 (NSW) stipulates the following items of compensation are to be assessed:
Section 55 (a) - the market value of the land on the date of its acquisition,
Section 55 (b) - any special value of the land on the date of its acquisition,
Section 55 (c) - any loss attributable to severance,
Section 55 (d) - any loss attributable to disturbance,
Section 55 (e) - the disadvantage resulting from relocation,
Section 55 (f) - any increase or decrease in the value of any other land of the person at the date of acquisitions 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.
Sovereign Valuations can be contacted for an obligation free initial consultation.