Acts/Cases

Question 1

What are the 7 most important acts in valuations

Answer 1

Transfer of Land Act 1958
Valuation of Land Act 1960
Local Government Act 1989
Land Acquisition and Compensation Act 1986
Planning and Environment Act 1987
Subdivisions Act 1988
Retail Leases Act 2003

Question 2

Cold Storage Case

Answer 2

Established the ‘Ultimate Consumer Test’
Industrial uses can fall under RLA

Question 3

Jam Factory Case

Answer 3

Disregards lease/mortgage when assessing SV, CIV (fee simple unencumbered by any lease, mortgage or charge)

Question 4

Freehill vs Eureka

Answer 4

Office determination of market rent/rent reviews

Question 5

GPO Building Case

Answer 5

Site value $1 - Valuation of Land Act
Heritage Building - current use is highest and best use. Cost to replace improvements were so high it left nothing for site value. But cant be $0

Question 6

What does section 98 of the Planning and Environment Act 1987 refer to?

Answer 6

Right to compensation - The owner or occupier of any land may claim compensation from the planning authority for financial loss suffered as the natural, direct and reasonable consequence of landing being reserved for a public purpose

Question 7

What is section 73 of the Transfer of Land Act 1958?

Answer 7

Removal of easement - a registered proprietor can apply for removal of an easement in whole or in part where it has been abandoned or extinguished

Question 8

What is section 98 of the Transfer of Land Act 1958?

Answer 8

Easements arising from the plan of subdivision - relates to the need for drainage, sewerage and utility easements as they are required for the lots etc

Question 9

What is section 5A of the Valuation of Land Act 1960?

Answer 9

Determining the value of land by giving reference to the terms and comparability of similar sales as well as:
- Effect of any legislation/planning scheme
- Earning Potential
- H&BU
- Shape, size, topography, soil and aspect of land
- Location in respect to transport and other amenities
- The improvements on the land

Question 10

What is section 17 of Valuation of Land Act 1960?

Answer 10

Grounds for Objection - (rates)
- Too high or too low
- Interest held by persons have not been correctly apportioned
- Lands should have been included in one valuation have been valued seperately, vice versa
- Details on the notices are incorrect

Question 11

What is section 154 of Local Government Act 1989?

Answer 11

What land is rateable
All land except:
- crown land
- charitable purposes
- religious purposes
- land used for mining purposes
- RSL, air force or ex-servicemen

Question 12

What is section 40 Land Acquisition and Compensation Act 1986?

Answer 12

Heads of compensation

Question 13

What is section 41 Land Acquisition and Compensation Act 1986?

Answer 13

Relates to what compensation is to be based on (heads of claim, legal and profession fees) as well as the prescribed formula (A/B x C)
A - Compensation previously paid
B - Market value of land which compensation was paid
C - compensation payable

Question 14

What is section 44 Land Acquisition and Compensation Act 1986?

Answer 14

Solatium - compensation can increased up to 10% of market value, for intangible and non-pecuniary disadvantages
a) length of time occupying land
b) inconvenience suffered
c) age of claimaint
d) principal place of residence, number age and circumstances of others living with claimant

Question 15

Section 37 RLA?

Answer 15

Rent reviews based on current market rent - performed by valuer with 5+ years experience, also refers to rent reviews being completed by assessing as vacant possession ignoring any goodwill, and tenants improvements and having regard to:
the provisions of the lease,
the market rent for a similar premises,
the landlords outgoings and the extent to which the tenant will be liable; and
any rent concessions or other benefits

Question 16

Under the subdivision act what is a public space contribution?

Answer 16

Applies to the subdivision of land and a person may be required to
set aside up to 5% of the land for public open space
pay up to 5% of the site value of the land
a combination of both
or contribute up to 10%

Question 17

490 St Kilda Road

Answer 17

Heritage overlay - originally VGV thought without improvements, it has good potential - could have been $12m SV. Property sold for $8m so they made the CIV and SV $8m. Owner and valuers said that due to the constraints and cost to reproduce the proeprty - it would cost about $6m, and allow for some depreciation. Therefore they took off that from the CIV and then what was left was the SV. Case went to VCAT and Supreme court and ruled against VGV. But the matter is still ongoing.

Question 18

Windfarm Case

Answer 18

Land was leased out and had Wind Turbines. CIV was including the wind turbines. It was an issue of chattels vs fixtures, with VGV thinking they were fixtures. However, due to the operators leasing the property, and they wouldnt be sold with the property + requirements in the lease and permit of the wind turbines needing to be removed it was decided they were not fixtures. CIV definition in Valuation of Land Act has now been amended to include things ‘owner by owner or tenant or any other occupier of the land’

Question 19

Planning and Environment Act 1987 - Section 104

Answer 19

Maximum compensation for financial loss - cannot exceed the difference between value at the date of compensation and the value at the same date if it was not affected by any cirumstance

Question 20

What is the plunkett case?

Answer 20

When contracts have provided for extended settlement - compensation previously could have been paid and then the purchaser defaults so a contract was not completed.
Therefore whilst compensation is assessed at the contract date, it is not paid until settlement or after.