CPO Flashcards

1
Q

What does an order have to demonstrate?

A

A compelling case in the public interest

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2
Q

What are the enabling powers of Compulsory Purchase?

A

A public general act of parliament

  • Act confers powers on specific bodies (Local authorities)
  • T&C Planning Act 1990, Highways Act 1990

Private act of parliament

  • Powers for a specific function
  • eg. Crossrail Act
  • Affect the public as a whole and elements that impact directly on particular individuals

Transport & works act 1992

Planning Act 2008

  • Development consent order
  • Can take permanent or temporary rights
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3
Q

Who signs off on a CPO?

A

Secretary of State

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4
Q

Explain the process of the Public General Act (procedure for making a CPO)

A
Resolution & Investigation of Ownership
Drafting of Consent of an Order
Publicising the order
Submission
Objections
Consideration of Objections
Public Inquiry
Written representation
SoS decision
Confirmation
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5
Q

Who does a TWO give powers to?

A

Guided transport systems

Anybody may apply to the SoS for a TWO.
Provides land and rights, extinguishment of rights, planning permission

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6
Q

What kind of land can not be compulsorily purchased?

A

Crown Land
Open Space (exchange land must normally be provided if a special parliamentary procedure allows the acquisition of open space)
Local Authority Land
Land owned by statutory undertaker & part of their core undertaking requirements.

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7
Q

When would you seek acquisition of rights rather than land?

A

Key question - would the proposed works permanently deprive the land owner of the use of his land?
If yes - land acquired
If no - consider only acquiring rights

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8
Q

What are the key acts and legislation surrounding compulsory purchase?

A

Town and Country Planning Act 1990
Highways Act 1990
Transport & Works Act 1992
Planning and Compulsory Purchase Act 2004
Land and Compensation Act 1961 & 1973
Compulsory Purchase Act 1965

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9
Q

How long does a Compulsory Purchase procedure usually take?

A

12 - 18 months

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10
Q

What are CPO powers?

A

Powers that enable public bodies to acquire land compulsorily. Must have a compelling case in the public interest.

A CPO is a LAST RESORT

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11
Q

What must a planning CPO show?

A

Economic, social or environmental well-being improvement.

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12
Q

What principle is compensation paid using?

A

The principle of equivalence.

No one will be better off or worse off after compensation is paid.

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13
Q

What factors do you consider when valuing through compulsory purchase?

A
Nature of the interest
Extent and Condition
Use and potential changes in use
Date of valuation
Disturbances
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14
Q

What is the compensation code?

A

Collection of statute and case law.

Land Compensation Act 1961 & 1973
Compensation Act 1965

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15
Q

What is the principle of compensation?

A

Principle of equivalence.

Claimant should be put put in the same financial position as if their land had not been taken.

Horn vs Sunderland Corp (1941)

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16
Q

What are the main factors in identifying compensation?

A

NEUDD

Nature of interest
Extent and condition
Use and potential changes in use
Date of valuation
Disturbance
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17
Q

When is the date of valuation?

A

The earliest of:

Date value agreed
Date posssession taken (NTT or date title vests)
Last day of any Lands Tribunal hearing

Birmingham corp v West Midlands Baptist Trust

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18
Q

What are the heads of claim?

A

LSD PIL

Land value
Severance
Disturbance
Professional fees
Injurious Affection
Loss payment
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19
Q

What are the rules of valuation and where can they be found?

A

CV SIED

s5 of Land Compensation Act 1961

No allowance on account of it being COMPULSORY

Open market VALUE

SPECIAL suitability or adaptability

Exclude any values attributable to unlawful ILLEGAL or unhealthy uses

EQUIVALENT reinstatement - no demand, assessed on basis of reinstatement cost

DISTURBANCE

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20
Q

Does severance/IJ apply when acquiring the whole land?

A

No - only when part of the land is taken

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21
Q

Where can you find the right to claim Severance/Injurious Affection?

A

s7 Compulsory Purchase Act 1965

22
Q

What is severance?

A

When the value of land retained decreases due to the land taken, compensation will be given

23
Q

What is injurious affection?

A

When the value of land retained decreases due to proposed construction and use of land acquired.

24
Q

What is the main difference between severance and injurious affection?

A

Severance - when land becomes separated

IJ - occurs as a result of the construction and use of AA’s scheme

25
Q

What is betterment?

A

When the value of retained land increases - offset against compensation

26
Q

What approach to valuation can be taken in case of partial acquisition?

A

“Before and after” approach in line with principle of equivalence

Value in “no-scheme world” and compare with what you are left with in the “scheme world”

27
Q

If only part of the claimants land is being acquired, can they compel the AA to take all of it?

A

Yes - material detriment

AA may have to acquire the whole property rather than just part of interest

28
Q

What is disturbance?

A

In addition to the value of land taken, a claimant is entitled to the losses occasioned by being turned out or “disturbed”

Based on costs of relocating the business or the cost of extinguishing the business or reinvestment costs

ONLY on existing use value

29
Q

Are you entitled to disturbance if you occupy the property but do not own the freehold?

A

Yes - will reflect costs incurred and losses sustained as a direct, natural and reasonable consequence of having to move out of the property

eg - moving costs

30
Q

Are you entitled to disturbance if you do not occupy the property?

A

If you don’t occupy AND don’t own freehold, you’re not entitled to disturbance

If you own freehold AND acquiring new investment property, entitled to reimbursement of costs incurred acquiring a replacement investment.

31
Q

Disturbance compensation is generally based on two things if in occupation, what are they?

A

Cost of reloating

Extinguishing business

32
Q

What are relocation costs?

A

Reasonable costs and expenditure which arise as a natural and reasonable consequence of having to relocate a business as a result of the acquisition

33
Q

What are typical relocation items?

A
Removal expenses
Legal fees for new acquisition
Surveyor's/architect's fees
Special adaptions/fit out
Temporary loss of profits
Loss of good will
Depreciation in value of stock
Notification of new address to customers
New stocks of stationary

Summed up as - DUTY TO MITIGATE LOSS

34
Q

Whose duty is it to come up with the compensation for relocation and how would you advise your client?

A

Onus on claimant to justify

Claimant to prove it should be compensated

I would advise the claimant to keep a detailed record of losses sustained and costs incurred with the acquisition of the property.

35
Q

When is the landowner entitled to extinguishment?

A

Two routes:
ENFORCEMENT:
No available properties to relocate to

STATUTORY: 
Sole proprietor
Over 60
Rateable value under £34,800
Not disposed of the Goodwill and will no do so at a later date.
36
Q

If compensation is based on extinguishment, what sort of things are included in the claim?

A

Value of business
Loss through forced sale of stock, plant, equipment
Redundancy payments
Administrative costs

37
Q

You mention cpo powers are necessary for regen and infrastructure. What is the key test that needs to be satisfied to obtain CP powers?

A

They must demonstrate a compelling case in the public interest

38
Q

What is the compensation code?

A

Statue and case law outlining how to calculate compensation

39
Q

What is the key purpose of TCPA regarding CPO and what are the tests?

A

TCPA is an enabling act granting CP powers.

Must improve economic, environmental or social wellbeing

40
Q

What act is important regarding how CP compesnation is assessed rather than an enabling power?

A

Land and Compensation Act 1961

41
Q

What does s5 of the LCA contain?

A

Rules for valuation

42
Q

What stage of the CPO process was West Hendon in?

A

The order had been confirmed but not implemented yet

43
Q

When acquiring by private treaty, did you still assess compensation as if the asset had been CPOd? If so, why?

A

Yes as it is in line with government guidance.

44
Q

What were the interests in West Hendon?

A

ALL OWNER OCCUPIER

45
Q

What do professional fees constitute?

A

Surveyors fees and legal fees - prof fees associated with the CPO

46
Q

If you were going to CPO the site anyway, why did you try to contact all the parties?

A

You must show a reasonable effort to acquire the site through private treaty in order for the CPO to be made

47
Q

What is an option agreement?

A

An agreement between the interest holder and the developer that granted the developer the right but not the obligation to purchase the asset for a certain price by a certain date.

48
Q

What is an advanced payment?

A

90% of AA’s estimated compensation

49
Q

Were the offer open offers?

A

No, they were subject to contract and without prejudice.

50
Q

What does without prejudice mean?

A

It’s a negotiation tool that means any figure or wording can’t be used in court.