Compulsory Purchase & Acquisiton (L3)

Question 1

What is the history of Compulsory Purchase?

Answer 1

• Lands Clauses Consolidation Act 1845 - severance/injurious affection payments are still based on this. Pre-1919, compensation was awarded with case law.
• It is a fundamental human right that a person should not be deprived of land without compensation.

Question 2

Describe the Acquisition of Land Act 1981

Question 3

Describe the Compulsory Purchase Act 1965

Question 4

What is the difference between CPO, DCO and TWAO?

Answer 4

Compulsory Purchase Order
Development Consent Order - consolidates compulsory purcahse powers, planning permission and other necessary consents needed for Nationally Significant Infrastructure Projects (NSIPs), as defined in the Planning Act 2008
Transport and Works Act Order - used to authorise new railways and trams (Transport and Works Act 1972)

Question 5

What is a Notice to Treat

Answer 5

An invitation to negotiate given by an authority that has armed itself with compulsory powers to the owner of an interest in land that the authority wishes to acquire

Question 6

What is a GVD

Answer 6

An alternative to the notice to treat/notice of entry route, the acquiring authority may acquire land by making a general vesting declaration (GVD). The main difference with this method is that not only does the GVD give the acquiring authority the right to enter and take possession of the land but it vests (transfers) the title to the land in the acquiring authority

Question 7

Who can apply for a CPO?

Answer 7

Government Departments and Agencies, Local Authorities, anyone with a parliamental private bill procedure eg rail companies (statutory undertakers, Civil Aviation Authority, Post Office, British Telecommunications)

Question 8

What is the RICS professional statement relating to Compulsory Purchase?

Answer 8

RICS Professional Standard - Surveyors Advising in respect of Compulsory Purchase and Statutory Compesation UK (1st ed)

Question 9

What are some other examples of guidance that is used?

Answer 9

• The Land Compensation Claims Protocol 2018
• Model Claim for Claimants

Question 10

What is the RICS Prof Statement - Surveyors Advising in respect of Compulsory Purchase?

Answer 10

provides guidance and mandatory professional behaviour to hlep provide
advice regarding property interests in the UK that relates to the seeking or use of compulsory purchase or other statutory powers by or against your client, or where the seeking or use of such powers is contemplated

Question 11

What is the Land Compensation Claims Protocol 2018?

Answer 11

applies to any claim for compensation made by a claimant to a compensating authority that would, in the absence of agreement between the parties, involve a reference to the Upper Tribunal (Lands Chamber) under Part 5 of the Upper Tribunal (Lands Chamber) Procedure Rules 2010 (as amended)

Question 12

What is the Model Claim Form for Claimants?

Answer 12

a template used to help formulate a compensation claim.

Question 13

What are the 6 rules of s.5 of the Land Compensation Act 1961?

Answer 13

1. No allowance - scraps the previous rule of 10% allowance for a forced sale
2. Market Value - value expected on open market from a willing seller
3. Special Suitability - excudes any special purchasers
4. Illegal User - no value attributed to land if used illegally (eg planning breach)
5. Equivalent Reinstatement - land devoted to a specific purpose, with no general demand or market, may be compensated on reinstatement basis
6. Disturbance - rule 2 shall not effect the assessment for compensation for disturbance

Question 14

What is disturbance?

Answer 14

Two qualifying rules;
1. Expropriation - claimant must show deprivation of valuable interest (s.37 LCA 1973 includes lawful possession eg tenants)
2. Dispossession - meaning deprived of occupation, eg not payable to developers/investors that do not occupy the land.
- Claimants must also mitigate losses, not be too remote, be a natural and reasonable consequence of the acquisition

Question 15

What is severance & injurious affection?

Answer 15

1.when part of the property is taken, and teh value fo the remaining is adversly affected by the scheme (either by nature of the scheme and its effect on retained land, or becuase of the way the land is physically severed.
2. When no land is acquired, but the builidng of the scheme and/or subsequent use may cause diminuation of the land.

Question 16

What are the three heads of claims?

Answer 16

1. Compensation for land taken
2. Compensation for severance and injurious affection
3. Compensation for disturbance and other losses not based directly on land value.

Question 17

What are statutory loss payments?

Answer 17

under s.33 A-K of the Land Compensation Act 1973, ‘Basic’ and ‘Occupiers’ loss payments are paid to claimants other than residential occupiers and residential owner-occupiers

Question 18

What is Compensation?

Answer 18

The right for the claimaint to be put, in so far as money can do so, in the same position as if his land had not been taken (Horn v Sunderland)

Question 19

What is a Notice of Entry?

Answer 19

• allows the acquiring authority to take possession of the land
• The notice of entry must specify a date when the acquiring authority proposes to enter and take possession of the land, which must be at least 3 months away. The date that the acquiring authority enters and takes possession of the land must usually be within 3 years from the date of the service of the notice to treat.

Question 20

what is Basic Loss Payment?

Answer 20

payable to a person who (a) has a qualifying interest in land, (b) whose interest is acquired compulsorily and (c) to the extent that he is not entitled to a home loss payment in respect of any part of the interest.
The amount of BLP payable to a qualifying claimant is the lower of 7.5% of the value of the interest or £75,000

Question 21

What is Occupiers Loss Payment?

Answer 21

• payable to a person if (a) he has a qualifying interest in land, (b) the land is agricultural land, (c) the interest is acquired compulsorily, and (d) he occupied the land for the necessary period
• The amount of OLP payable for agricultural land is the greatest of 2.5% of the value of the interest, the land amount (£100/ha up to 100 ha, £50/ha up to 300 ha) or the buildings amount (£25/sq. m), with the maximum amount that may be paid is £25,000.
• For non-agricultural land, the greatest of 2.5% of the value of the interest, the land amount (greatest of £2,500 or £2.50/sq.m) or the buildings (£25/sq.m) amount with the maximum amount that may be paid is £25,000

Question 22

How can purchase powers be acquired?

Answer 22

1. a private act of parliament (ie a private Bill procedure) eg the Channel Tunnel Act 1987
2. A public general act of parliament eg the Defence Acts
3. a public general act by way of a provisional order eg Inclosure of Commons Act 1876
4. a Public Act authorising the compulsory purchase of land by way of compulsory purchase order eg The Highways Act 1980
5. A works act under the Transport and Works Act 1992
6. a development consent order under the Planning Act 2008

Question 23

what act lays out the procedure for making and confirming CPOs?

Answer 23

The Acquisition of Land Act 1981