Glossary of property acquisition terms
Find explanations for some of the terms used throughout the property acquisition process.
Acquiring Authority
A NSW authority that has legal power to acquire property.
Acquisition (or acquire)
Where the property is acquired by agreement or compulsory process for a public purpose.
Acquisition by agreement
The process by which property is acquired for a public purpose by agreement with the owner.
Acquisition notice
A notice published in the NSW Government Gazette. When an acquisition notice is published, it means that the Governor of NSW has approved the compulsory acquisition and ownership of the land transfers to the acquiring authority.
Refer to Section 19 of the Land Acquisition (Just Terms Compensation) Act 1991
Compensation notice
The acquiring authority must issue the former landowner with a compensation notice which includes the determination of compensation. This usually occurs within 45 days after the publication of the acquisition notice. The compensation notice officially notifies the former landowner that the land has been compulsorily acquired and provides the amount of compensation offered as determined by the Valuer General.
Refer to Section 42 of the Land Acquisition (Just Terms Compensation) Act 1991
Compulsory acquisition
The process by which property is acquired for a public purpose by Acquisition Notice in the NSW Government Gazette.
Deed of Release and Indemnity
A formal document that confirms the agreed compensation is the only compensation payable.
Disadvantage resulting from relocation (formerly referred to as solatium)
Financial compensation for the non-financial disadvantage, as a result of having to relocate his or her principal place of residence due to the acquisition.
Refer to Section 60 of the Land Acquisition (Just Terms Compensation) Act 1991
Disturbance (loss as a result of)
The financial costs reasonably incurred as a resulting of the acquisition of land.
Refer to Section 59 of the Land Acquisition (Just Terms Compensation) Act 1991
Government Land
Land owned by a federal, state or local government entity.
Hardship acquisition
The process whereby land is acquired following an application for owner-initiated acquisition due to hardship.
Refer to Division 3 Part 2 of the Land Acquisition (Just Terms Compensation) Act 1991
Land and Environment Court
A specialist NSW environmental and planning court which has the authority to hear disputes of compensation arising from land acquisitions.
Land Acquisition (Just Terms Compensation) Act 1991
The legislation which governs the acquisition of land in NSW and defines compensation entitlements.
Market value
The amount that would have been paid for the land if it had been sold at that time by a willing but not anxious seller to a willing but not anxious buyer.
The ‘market value’ will disregard (for the purpose of determining the amount that would have been paid):
- any increase or decrease in the value of the land caused by the carrying out of, or the proposal to carry out, the public purpose for which the land was acquired, and
- any increase in the value of the land caused by the carrying out by the authority of the State, before the land is acquired, of improvements for the public purpose for which the land is to be acquired, and
- any increase in the value of the land caused by its use in a manner or for a purpose contrary to law.
Refer to Section 56 of the Land Acquisition (Just Terms Compensation) Act 1991
NSW Government Gazette
The official Government Gazette is the permanent public record of official notices issued by the NSW Government
Refer to NSW Government Gazettes 2001-2019
Partial acquisition
Where only part of a property is acquired for a public purpose.
Private Land
Land which is not owned by a federal, state or local government entity.
Proposed Acquisition Notice
A notice of intention to acquire property by compulsory process (commonly known as the PAN).
Refer to Section 11 of the Land Acquisition (Just Terms Compensation) Act 1991
Severance (loss as a result of)
The amount of any reduction in the market value of any other land of the person entitled to compensation which is caused by that other land being severed from other land owned by that person.
Refer to Section 58 of the Land Acquisition (Just Terms Compensation) Act 1991
Special value
The financial value of any advantage, in addition to market value, to the person entitled to compensation which is incidental to the person’s use of the land.
Refer to Section 57 of the Land Acquisition (Just Terms Compensation) Act 1991
Substratum acquisition
Where underground land is acquired for a public purpose.
Valuer General
An independent Statutory Officer who has responsibility to make determinations of compensation for compulsory acquisitions.
Whole acquisition
Where the whole of a property is acquired for a public purpose.