Your land may be flagged for compulsory acquisition by a constructing authority well in advance of when a project is likely to commence.
Land is generally not acquired either by negotiation or through the formal resumption process, until construction of a project is imminent.
However, land may be acquired earlier than needed by a constructing authority if an owner of land affected by a project can demonstrate that they will suffer hardship if the acquisition of the land is delayed.
We can assist you with providing advice as to the benefits of lodging an early acquisition application and lodging the application to the relevant constructing authority.
What happens after the early acquisition application is approved?
When approval for early acquisition is approved, the first key step is to engage a valuer who specialises in valuing properties identified for resumption and acquisition. The reasonable valuation costs will be reimbursed to you by the constructing authority, together with your reasonable legal fees.
Once the valuation has been received a claim for compensation will be prepared which will include the total amount of compensation claimed – being the valuation of the land together with all disturbance items.
What disturbance costs can be claimed?
Section 20(1)(b) of the Acquisition of Land Act 1967 (ALA) provides that in the assessment for compensation, in every case the claimant’s costs attributable to disturbance must also be taken into account. Section 20(5) of the ALA provides a comprehensive list of what types of costs may be attributable to disturbance.
Working out the types of costs may be attributable to disturbance can be a complex process and it is highly recommended that you seek early legal advice as to what can be claimed as a disturbance cost.
Examples of the costs you might be able to claim as disturbance costs include, but are not strictly limited to:
- Legal fees and valuation costs incurred in relation to the preparation of your claim for compensation.
- Costs associated with the purchase of new land to replace the land being acquired. This may include costs such as stamp duty, costs associated with the discharge and registration of a mortgage and conveyancing costs.
- Removal and storage costs you might incur in relocating from the taken land.
- Costs incurred in connecting to services or utilities in relocating from the land taken.
- Loss of profits relating to disruption to home businesses that are a direct and natural consequence of the taking of the land.
- Other costs that are direct and natural consequences of the taking of the land such as the cost of school uniforms for children enrolled in a new school because of relocation or costs associated with the termination of a building contract.
In any event, for a cost to be able to be claimed as a disturbance cost, it must be a direct and natural consequence of the taking of the land and fall into one of the categories mentioned in section 20 of the ALA.
Contact us if you need assistance
Having a requirement over your land can have a significant impact in terms of future dealings related to your property. We are here to assist you with making the process as smooth as possible and ensuring you receive the highest amount of compensation you are entitled to.
If your property has been identified as being required for resumption for a project, please contact either, Sarah Day, at [email protected] or phone 3439 8880 to discuss your options.
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