Compulsory property acquisition



You’ll receive a Proposed Acquisition Notice

If you have not reached an agreement on compensation with the acquiring agency, you will be sent a Proposed Acquisition Notice (PAN), and the Valuer General becomes involved.

This notice will state the acquiring agency’s intention to compulsorily acquire the property after a certain time.

You will have the opportunity to lodge your own claim for compensation with the Valuer General.

You have 60 days from receiving the PAN to lodge your Section 39 Claim for Compensation form.

Your Claim for Compensation form will ensure your interests are recorded and the Valuer General can take them into consideration.


What you can do:

Complete the Section 39 Claim for Compensation form and include all information you would like the Valuer General to consider when making the determination of compensation.

Continue to try to reach an agreement with the acquiring agency.

Seek advice from your lawyer and acquisition support team on the compulsory acquisition process.

Negotiations continue

Negotiations between you and the acquiring agency can continue and an agreement can still be reached after a PAN has been issued.

The Valuer General will send you a letter explaining their role and informing you that work will begin on their determination.

An independent valuer will make a new valuation for the determination of your compensation, on behalf of the Valuer General.


What you can do:

Note the timelines outlined in your letter from the Valuer General.

Provide any information requested of you in a timely way.

Your property will be acquired

If an agreement still isn’t reached, the acquiring agency will compulsorily acquire your property.

The acquiring agency will publish a notice in the NSW Government Gazette, meaning:

  • the NSW Governor has approved the acquisition
  • following Gazettal, the Valuer General will determine the compensation owed to you
  • the acquiring agency becomes the owner of the property.

You will be able to stay in the property for up to three months (without paying rent), unless the acquiring agency needs it to be vacated earlier.


What you can do:

Continue to seek legal and valuation advice.

Continue to remain in contact with the Valuer General.

Valuer General determines compensation

The Valuer General will review your claim and make a new assessment on the amount of compensation owing.

The determination is provided to both you and the acquiring agency for feedback and consideration before the final determination of compensation is issued.

You’ll receive a Preliminary Valuation Report

Following the NSW Government Gazette notice, the Valuer General will send you and the acquiring agency a Preliminary Valuation Report.

The report shows the amount of compensation and how it was determined.


What you can do:

Consider the Valuer General’s Preliminary Valuation Report and submit your feedback. This feedback will be addressed before the Valuer General issues the final determination.

You will receive a final determination

The acquiring agency will send you a compensation notice that will contain the Valuer General’s final determination.

If you agree with the compensation notice, you can be paid the compensation within 28 days, once the Deed of Release and Indemnity has been received by the acquiring agency.

You’ll also be paid interest earned on the compensation, calculated from the published date of the notice in the NSW Government Gazette.


What you can do:

Consider the acquiring agency’s compensation notice.

Complete a Deed of Release and Indemnity and send it to the acquiring agency.

If you don’t agree with the final determination

If you don’t agree with the amount of compensation determined by the Valuer General, you can lodge an objection with the NSW Land and Environment Court.

You must lodge your objectionwithin 90 days of receiving your compensation notice from the acquiring agency.

The Court will determine your compensation following the necessary proceedings.


What you can do:

Lodge an objection with the NSW Land and Environment Court within 90 days of the compensation notice.


More information

You can download a copy of the Property Acquisition Residential Owners guide here