With numerous Government infrastructure projects currently underway, many properties have been subject to compulsory acquisition. Madgwicks has represented many clients in such cases and have identified several key issues that commonly arise.

How will you know your property is being acquired?

You will receive a “Notice of Intention to Acquire” the property from the Acquiring Authority (often being VicRoads, the State Government or a Council).

This document will provide information about why your property is being acquired and the approximate date of when the proposed land is to be acquired.

Once you have been served with a Notice of Intention to Acquire, what action can you not take?

Once you receive a Notice of Intention to Acquire you cannot sell the property.

How long after the Notice of Intention to Acquire will my land be acquired?

The Acquiring Authority has six months to acquire the land after serving the Notice of Intention to Acquire. If they do not acquire your property within six months, the Notice of Intention to Acquire lapses.

If the Acquiring Authority does acquire your property, a notice will be published in the Government Gazette. The date of this publication is the date of acquisition.

What happens if the Acquiring Authority does not go ahead with the acquisition?

You can claim any reasonable loss or damage from the Acquiring Authority that you have incurred due to the service of the Notice of Intention to Acquire.

What happens if the Acquiring Authority does go ahead with the acquisition?

You will receive an offer of compensation within 14 days from the notice being published in the Government Gazette. This will include a certificate of valuation and an explanation as to any difference between the offer and the valuation.

Do I have to accept the offer?

No, you can make a counter offer. You should obtain your own valuation and legal advice to support your counter offer.

Will the Acquiring Authority pay for my valuation and legal fees?

You are entitled to have your reasonable legal fees and valuation advice paid by the Acquiring Authority.

What factors should be considered for compensation?

The following factors are considered for compensation:

• The market value of the property on the date of acquisition – the valuation evidence is important if you dispute the market value.
• Any special value to you – the advantage (in addition to market value) to a you which is incidental to your ownership or occupation of that land, e.g. a blacksmith who has a property adjoining a racetrack may have special value that is not relevant to most purchasers of the land.
• Any loss attributable to severance – means the amount of any reduction in the market value of any other interest in the land (or in other land) which is caused by its severance from the land, e.g. if a portion of the property is taken, market value compensation may not effectively compensation for the depreciation of the portion of the land not taken.
• Any loss attributable to disturbance – loss suffered as a result of the natural, direct and reasonable consequence, e.g. relocation costs.
• Any legal, valuation and other professional expenses necessarily incurred by the claimant by reason of the acquisition of the interest.
• Solatium – intangible amounts (not exceeding 10% of market value) which include the following:
  • The length of time you have occupied the land.
  • The inconvenience being removed from the land.
  • The period of time you were likely to have continued to occupy the land if it weren’t for the acquisition.
  • Your age and circumstances and that of those who live with you.

What if the Acquiring Authority and I cannot agree on compensation?

The matter becomes a disputed claim and the matter will be heard by VCAT or the Supreme Court.

Navigating compensation for compulsory acquisitions can be complex and potentially costly if not handled correctly. Seeking legal advice is essential to ensure you understand your rights and entitlements. For tailored guidance and support with your claim, contact Catherine Ballantyne, Principal at Madgwicks Lawyers.

The information provided in this article is general in nature and cannot be relied on as legal advice, nor does it create an engagement. Please contact one our Lawyers listed above for advice about your specific situation.