Compensation and acquisition occur in different nature, the nature of acquisition can be either partial or full. When a responsible authority or Government is intended to acquire a proposed land for public purposes, such authority will have to offer compensation to the claimants or landowners, often as a result of loss of land or damages as an outcome of acquisition. The heads of compensation may include as followed:
– Market Value
The market value of the interest of land on the day of acquisition, which is defined as ‘the amount that would have been paid for the interest if it had been sold at that time by a willing but not anxious seller to a willing but not anxious seller’.
– Severance
The reduction of market value due to a portion of land being acquired or splitting of land.
– Enhancement or Injurious Affection
Enhancement also known as ‘appreciation’, it can occur when the land is adjoining to positive attributes which may lead to an increase in property value, such as a beautiful garden or a scenic park, on the other hand, injurious affection is the opposite, the value of the property may significantly decrease due to adjoining or adjacent to a sewerage or septic tank which has unpleasant or detrimental effect.
– Disturbance
Any loss, injury or damage suffered, or expense reasonably incurred as a direct, natural and reasonable consequence of the acquisition of the interest. For an instance, disturbance can happen as a result of relocation, escalation of rental payment in new property, removal of fence or any negative occurrence which lead to inconvenience of claimants or landowners.
– Solatium
Any additional costs of non-financial compensation inflicting on claimants or landowners. Solatium is payable when a person is forced to moved out from their principal place of residence causing emotional pain. The longer a person has lived in their property, the higher solatium may apply.
– Professional Costs
Professional Costs apply to any expenses or disbursement incur for professional reasons. This may include various fees for legal and valuation.
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