Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

APC Spring 2024 > Compulsory Purchase and Compensation > Flashcards

Compulsory Purchase and Compensation Flashcards

1
Q

What is the definition of compulsory purchase and compensation?

A

Compulsory purchase is the power to acquire rights over an estate in English land law or to buy an estate outright, without the current owner’s consent in return for compensation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the purpose of compulsory purchase?

A

Compulsory purchase powers are provided to enable acquiring authorities to compulsorily purchase land to carry out a function which Parliament has decided is in the public interest.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Who has compulsory purchase powers?

A

Many bodies with statutory powers have compulsory purchase powers. Such powers are conferred and prescribed by Acts of Parliament and require the approval of the Government Minister specified in the Act.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the compulsory purchase process?

A
  1. Keep a comprehensive record of all communications with the acquiring authority.
  2. Keep detailed records of all expenses incurred and losses sustained as these may be recoverable as part of the claim for compensation.
  3. You can only receive compensation for expenses and losses which occur as a direct and reasonable consequence of the acquisition of your property.
  4. You are also under a duty to mitigate your loss. Steps therefore should be taken to minimise losses.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the key bits of legislation in relation to compulsory purchase?

A
  1. The Compulsory Purchase Act 1965
  2. The Land Compensation Act 1973
  3. Planning Act 2008 (contains important powers)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Is HS2 covered by the main legislation for compulsory purchase and compensation?

A

No, special legislation applies to HS2 and other major infrastructure projects

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the principle of equivalence in relation to compulsory purchase and compensation?

A

You should be no better or worse off in financial terms after an acquisition than you were before.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the compensation code?

A

This is the collective term used to describe the legislation and case law governing the procedures for compensation following compulsory purchase.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the two main principles for compensation?

A
  1. Compensation where land is taken
  2. Compensation where no land is taken
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the main elements for compensation?

A
  1. The value of the land taken
  2. Severance and/or injurious affection
  3. Disturbance
  4. Other losses not directly based on the value of the land
  5. Fees
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is land taken?

A

The value of the land taken that is to be negotiated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is no land taken?

A

This is where compensation is payable in limited circumstances when no land is taken but when statutory powers are exercised.

Compensation is payable when a loss occurs because some right in the property (instead of the actual property itself) is taken away or interfered with.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is severance and/or injurious affection?

A

This is the depreciation in the value of land you retain where only part of your land holding is acquired.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is disturbance?

A

This represents the costs and losses incurred as a result of being disturbed from the occupation of the property.

(Only available to occupiers of the property and in some circumstances to an investment owner reclaiming incidental costs.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are fees?

A

The reasonable surveyors fees incurred in preparing and negotiating a compensation settlement, together with solicitors fees for conveyancing.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is Betterment?

A

This is the opposite of injurious affection. There may be instances where the scheme of the acquiring authority may increase the value of the retained land.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is the basis of value for land taken?

A

This is based upon what the land might be expected to realise if sold in the open market by a willing seller.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is the “no-scheme” rule?

A

This is where the effect of the scheme underlying a CPO is required to be disregarded in assessing compensation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are the three sets of rules that require the scheme underlying the CPO to be disregarded:

A

Rule 1: The scheme cancellation rules. These apply to the determination of the planning status of the land.

Rule 2: The scheme disregard rule.

Rule 3: The judicial rule to disregard increases and decreases in value due to the scheme underlying the acquisition as set out in Pointe Gourde

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is severance?

A

Severance is when the land acquired contributes to the value of the land which is retained, so that when severed from it, the retained land loses value.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is injurious affection?

A

Injurious affection is the depreciation in value of the retained land as a result of the proposed construction on, and use of, the land acquired by the acquiring authority for the scheme.

22
Q

When is compensation for disturbance applicable?

A
  1. If the compensation for the land taken is based on existing use value.
  2. Depending upon the circumstances of the acquisition, disturbance compensation may be based on the costs of relocating the business or extinguishing it.
  3. Whilst it is incumbent to relocate your own business, if this isn’t possible then it may be necessary for the business to close, in which compensation will be payable for the total extinguishment of the business.
23
Q

What are some items which could be compensated as a result of a relocation?

A
  1. Surveyors and architects fees
  2. Legal fees
  3. Removal expenses
  4. Stamp duty
  5. Loss of profit
  6. Depreciation
  7. Notification of new address
24
Q

Is compensation payable to a displaced claimant who was in lawful occupation of land but has no compensatable interest in the land?

A

Yes but it is limited and payable to tenancies at will or tenancies on sufferance and licenses.

25
Q

What is the home-loss payment?

A

This is an additional sum to reflect and recognise the distress and discomfort of being compelled to move out of a persons home.

26
Q

Where can the qualifying conditions for home loss payments be found?

A

Section 29-33 of the Land Compensation Act 1973

27
Q

How is the amount of home-loss payment calculated?

A

As a percentage of the market value of the property at the date the property is acquired, subject to a minimum and maximum amount set out in regulations.

28
Q

How would you calculate betterment?

A

If Betterment exists, you would look to offset the increase in value against the compensation that is payable in respect of the land acquired.

29
Q

When can compensation be claimed for no land taken?

A
  1. A reduction in the value of land caused by the execution of public works.
  2. A reduction in the value of land caused by the subsequent use of public works.
30
Q

What are the different types of interests in land and property which may be subject to a claim?

A
  1. Freehold
  2. Leasehold
  3. Leasehold with a share of the freehold
31
Q

What is meant by freehold tenure?

A

This is where the owner of the property owns it outright, including the land it is built upon. Their name is in the land registry as the freeholder, and they own the absolute title.

32
Q

What is meant by freehold and owner occupier?

A

You own the property and also live in it or occupy the land

33
Q

What is meant by Commonhold?

A

This is a type of freehold ownership. It helps flat owners acquire full ownership of their property instead of having it on a lease.

People within a block of flats club together to form a company called a Commonhold Association which then owns the building.

34
Q

What is a leasehold tenure?

A

This is where you own the property for a set period of time as defined within a lease but not the land that the property is on.

35
Q

What is a Tenant?

A

A person who occupied a property for a set period of time called a tenancy and pays rent for it

36
Q

What is a Licensee?

A

A person who usually occupies the property short term and does not have full tenancy rights

37
Q

What is a Tenancy at Will?

A

This is an agreement between a Landlord and Tenant without a written agreement.

This type of tenancy does not specify its duration or the exchange or payment which can be terminated at any time.

38
Q

Who could an authority’s valuer be?

A
  1. Acquiring Authority
  2. District Valuer
  3. Another Agent
39
Q

What is the role of an Authority’s Valuer?

A

That of an impartial expert seeking to reach provisional agreement on terms that are fair and proper between the parties and within the statutory compensation code or any other appropriate statutory provisions.

40
Q

What is meant by “subject to contract?”

A

This is used to ensure that there is no binding relationship during negotiations. This maintains the invitation to treat status.

41
Q

What is meant by “without prejudice?”

A

The use of the phrase “without prejudice” indicates that the communications is privileged and is not admissible as evidence against the party making it.

42
Q

If compensation is not agreed, what happens next?

A

A reference can be made to the Upper Tribunal (Lands Chamber) by either the claimant or the acquiring authority. Proceedings are commenced by filing a notice of reference.

43
Q

What is the role of the Upper Tribunal (Lands Chamber) with regards to compulsory purchase and compensation?

A

The Tribunal determines disputed compensation for the compulsory acquisition of land and the injurious affection of land.

44
Q

Which document does the UTLC follow for making decisions?

A

The Tribunal Procedure (Upper Tribunal) (Lands Chamber) Rules 2010.

This sets out rules on how to appeal, how hearings are conducted and how the Tribunal reaches decisions.

45
Q

When assessing compensation, what is the day when compensation is payable?

A
  1. The date compensation is agreed
  2. The date that compensation is determined by the UTLC
  3. The date on which the acquiring authority enters and takes possession of the land or the date that the title vests in the acquiring authority (if using GVDs)
46
Q

What is the time limit for bringing a claim?

A

6 year limitation period. From the time when the cause of claim for compensation arose

47
Q

What is material detriment?

A

This is where the acquiring authority proposes to acquire only part of a property, and you can seek to make them acquire the whole of the property interest rather than just a part.

The acquiring authority can either withdraw, take all the land or ask the UTLC to determine.

48
Q

What is blight?

A

This is where a landowner is unable to sell their property or can only sell it at a substantially reduced price as a result of the CPO.

49
Q

What is a blight notice?

A

This is when a landowner serves a blight notice on the acquiring authority seeking them to purchase the land at open market value.

The process is often referred to as reverse compulsory purchase!

50
Q

What is a purchase notice?

A

Purchase notices entitle owners of land to initiate compulsory purchase of their land by an authority and be paid compensation as it were a compulsory purchase.

51
Q

What are some examples for when a purchase notice would be used?

A

It provides landowners with a means of having land acquired by a local planning authority where the land has become incapable of reasonably beneficial use and as result of revocation or modification of planning permission or listed building consent

52
Q

What are the main Heads of Claim?

A
  1. Land taken
  2. Severance and injurious affection
  3. Disturbance
  4. Fees

APC Spring 2024 (18 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions