Compulsory Purchase and Compensation Flashcards
(35 cards)
What are some key acts associated with compulsory purchase and compensation?
- Land compensation act 1961
- Planning act 2008
- Compulsory purchase act 1965
- Land compensation act 1973
- Acquisition of land act 1981
- All parent legislation
- RICS Guidance Note: Surveyors acting in respect of compulsory purchase and compensation (2017)
What is the key piece of legislation from the Land Compensation Act 1961?
The 6 Rules of Compensation in section 5
What is the key piece of legislation from the Compulsory Purchase Act 1965?
Section 10 details injurious affection
What is the difference between Injurious affection and severance?
Severance is about the physical separation of land, while injurious affection is about the broader negative impacts on the retained land from the overall scheme. Both are considered when calculating compensation for landowners affected by compulsory purchase.
What is the key piece of legislation from the Land Compensation Act 1973
Occupiers receive loss payments relating to the land e.g. crop loss
What act accompanies the parent act in a CPO?
Acquisition of land act 1981
Outline the broad steps for a CPO
- Pre-application
- Submission
- Examination
- Decision
- Post-Decision
- NTT or GVD
Outline the broad steps for a DCO
- Pre-application (FEED and consultation)
- Submission (s56)
- Examination
- Acceptance (S134)
- Post-Decision
Outline the Notice to Treat process
- Notice to treat served to begin timeline for agreeing rights
Compensation can be agreed upfront, within 3 years of CPO being confirmed - Notice to enter served less than 3 months before entry
Title won’t be conveyed until compensation is sorted - Conveyancing
Transfer of property - can enter before conveyed.
Outline the General Vesting Declaration Process
- Must be executed within 3 years of confirmation of CPO
- Provides the rights to enter and take possession in one
- At least 3 months away, the title vests to the acquiring authority on a specific (vesting) date.
- Rights go to AA, compensation goes to landowner
- GVD can relate to a number of properties, and can have multiple for one CPO
How would unregistered land be acquired as part of a CPO?
On site notices would be erected under s6 of the Acquisition of land act 1981 and published in the local library for at least 6 weeks
What happened in Horn V Sunderland (1941)?
It was determined that the landowner should not be better (or worse) off as a result of the CPO - rule of equivalence.
How would highways land be acquired in a CPO?
Always under the highways act 1980 in conjunction with the acquisition of land act 1981
What are some main points within the professional statement: Surveyors advising in respect of compulsory purchase and compensation (2017 / 2024)
- To be able to demonstrate case law
- Give balanced advise
- Inspections to be carried out to the extent necessary to produce professionally competent advice, having regard to its purpose and circumstances of the case.
- Ensure the client is aware of this statement; the RICS consumer guide on compulsory purchase, land compensation claims protocol, UK gov compulsory purchase and compensation guides 1-4
- “Shadow negotiations” - always seek voluntary negotiations before statutory compensation is triggered
- Do not submit claim figures you cannot professionally support
What are the Crichel Downs Rules?
The Acquiring Authority must offer the land taken back to the previous owner at the current market value if the land is no longer required.
- Only apply if acquired by compulsion
- Disposer should consider costs of returning land to former use
- Does not apply to:
- agricultural land acquired before 1935
- agricultural land acquired after 30/10/1992 which becomes surplus > 25 years after acquisition
- non-agricultural land which becomes surplus after 25 years
- land of use to another ministerial department - Former owner given 2 months from letter date to re-purchase - if they want to they have to wait a further 6 weeks to decide a price.
When would a CPO be granted?
If there is a compelling case in the public interest
What section of the WIA is CPO covered under?
Section 155
What section of the Electricity act is CPO covered under?
Sch 3 Part 1
What section of the Gas Act is CPO covered under?
Sch 3 Part 1 (Order under section 9)
What section of the WIA covers compensation?
Schedule 12
What are the minimum requirements for an NSIP?
Any of the following:
- More than 40km (pipe)
- More than 800mm in diameter (pipe)
- More than 50MW (Electricity in England - 350MW in Wales - 100MW offshore)
- Significant effect on the environment
What is statutory blight?
Statutory blight refers to a legal concept where a property’s value is significantly reduced due to a proposed public project or development, making it difficult or impossible to sell at market value.
Covered under Town and Country Planning Act 1990 - Just needs the “possibility” not probability [Head V Eastbourne [2009]]
What would happen if a dispute over a claim arose?
- Look at claim and see why there is no agreement
- If no agreement - go to 3rd party
What are the 6 Rules of Compensation?
- No Compulsory Acquisition Premium - Comp does not include additional allowances if acqisition is compulsory
- Market Value of land used - “on the valuation date, between a willing buyer and willing seller in an arms length transaction, after proper marketing, where both parties acted knowledgeably, prudently and without compulsion”.
3 Special Use Exclusion - There is no market demand for something like a substation, so would not consider planning there - comp to be assessed on a reinstatement basis. - Illegal or harmful use - If value has increased due to illegal use, or it is harmful to health, increase is not considered.
- Reinstatement Cost - Comp may be paid based on reasonable costs to reinstate the land elsewhere. e.g. if planning exists and you take over.
- Disturbance or other matters - Market value does not affect the assessment of compensation for disturbance or agents fees.
