Who may compulsorily acquire land?

Process of Compensation

• Before the acquisition process takes place, the land must first be reserved under a planning scheme with Public Acquisition Overlay to the land.
• In the instance of a proposed acquisition of a rented house on which there is a mortgage, the authority must serve the registered owner, mortgagee and tenant with a Notice of Intention to Acquire, as persons with an interest in the land. The Notice of Intention to Acquire has three major functions:
• It is the first formal notification of the authority’s intention to acquire an interest in the land (after the reservation in the planning scheme, if applicable).
• It prevents carrying out improvements on the land without consent of the authority.
• It provides an opportunity for the authority to elicit information from the person served about the land and other interested parties.
• When an authority formally acquires the land, they will publicise the acquisition into Government Gazette. Unless agreed in writing between the parties, or unless time is varied under section 106 of the LAC Act, the authority must not acquire the land until two months after service of the Notice of Intention to Acquire.
• When a Notice of Acquisition (NOA) has been published into a Government Gazette, the interest in the land described in the notice frees the authority of all encumbrances, licenses, and charges. Public utility easement rights are preserved unless specifically acquired. A copy of the Notice of Acquisition in the prescribed form and a statement of rights and obligations must be served within 14 days of the date of acquisition.
• If part of a lot is acquired, a plan of subdivision must be submitted to the council after the land is acquired. The plan will serve to re-describe the land acquired and any remaining land, as well as to make any required alterations to easements. A special process is laid down in the Subdivision Act 1988 for certification of these plans.
• When ‘Entry of Possession’ occurs, the authority cannot take possession of land used as a principal place of residence or business until three months after the date of acquisition, except with Governor in Council’s certification or by agreement with the claimant and the consent of the minister administering the special act.
• A person whose interest in land has been divested or diminished through a Notice of Acquisition has a right to claim for compensation. A person who makes or is entitled to make a claim for compensation is known as a claimant.
• Ultimately, as the first offer of compensation, the authority must make an offer of compensation to every claimant within 14 days of the date of acquisition or within a further period approved by the minister administering the special Act or with the agreement of the claimant. The offer is to be a fair and reasonable estimate of the compensation payable and be accompanied by a certificate of valuation used by the authority in making its offer.
• If no offer is made to a person entitled to compensation, that person may make a claim within two years after the date of acquisition. The Land Acquisition and Compensation Act 1986 sets out the procedures to be followed in these circumstances.