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Tate APC 2025 > Compulsory Purchase and Compensation > Flashcards

Compulsory Purchase and Compensation Flashcards

1
Q
  1. What is the RIC Professional Standard for Compulsory Purchase and Compensation?
  2. When did it take effect?
  3. What does it replace?
A
  1. “Surveyors advising in respect of Compulsory Purchase and Statutory Compensation (2024)”.
  2. December 2024
  3. RICS Guidance note on Compulsory Purchase and Compensation (2017)
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2
Q

What is the difference between a CPO and a DCO?

A

CPO is usually for smaller developments and is decided at a local level. This is for schemes that are in the public interest.

DCO is usually for NSIPS and is decided by planning inspectorate/ Secretary of State.

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3
Q

What would make a scheme be a DCO and not a CPO?

A

Thresholds

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4
Q

What act governs a DCO?

A

Town and Country Planning Act (2008)

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5
Q

What notice could you serve to request a CPO to be converted to a DCO, if it does not meet the required thresholds?

A

Direction Notice (Under section 35 of the Planning Act 2008)

You would then need to hold a Public Cconsultation before the DCO process begins

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6
Q

What act governs a CPO?

A

The Acquisition of Land Act (1981)

and Compulsory Purchase Act 1965

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7
Q

What are the 6 stages of obtaining a DCO?

A
  1. Pre Application
  2. Acceptance
  3. Pre Examination
  4. Examination
  5. Recommendations and Decisions
  6. Post Decision
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8
Q

When did Yorkshire Green complete each of the stages of the DCO process?

A
  1. Pre Application (March 2022)
  2. Acceptance (December 2022)
  3. Pre Examination (January 2023)
  4. Examination (March 2023)
  5. Recommendations and Decisions (March 2024)
  6. Post Decision
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9
Q

Can the DCO decision be challenged once it has been made?

A

There is a 6 week period after the decision has been made where it can be challenged. (Stage 6. Post-Decision)

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10
Q

What are the 7 Stages of obtaining a CPO?

A
  1. Preliminary Enquiries
  2. CPO Preparation and Submission
  3. Objecting a CPO
  4. CPO Consideration/ Public Enquiry
  5. Decision
  6. Possession and Acquisition
  7. Compensation
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11
Q

What are the timescales of obtaining a DCO?

A
  1. Pre Application (6-8 Months)
  2. Acceptance (28 Days for application to be accepted)
  3. Pre Examination (3 months)
  4. Examination (6 months)
  5. Recommendations and Decisions (3 months)
  6. Post Decision (6 week period to challenge outcome)

(Approx 12 - 15 months after application)

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12
Q

Does a DCO need to be an NSIP?

A

Yes

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13
Q

What is the valuation date on a CPO?

A

The earliest date of:
- Date of entry
- The vesting date
- Date when compensation was agreed

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14
Q

What are the Heads Of Claim in response to a CPO application?

A
  • Land Take (Value of land to be acquired)
  • Severance (Land also to be sold)
  • IA
  • Basic Loss payment (The lower of 7.5% of value of interest or £75,000)
  • Occupier’s loss payment (The lower of 2.5% of value of interest or £25,000)
  • Home loss payment (10% of MV of the property)
  • Fees
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15
Q

What is a Blight Notice? And what act is it served under?

A

Where a landowner can bring anticipated acquisition of land forward to a time of their preference, rather than waiting for a CPO from the acquiring authority.

Section 150 of the Town and Country Planning Act 1990

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16
Q

Are you aware of any of the Rules of Compulsory Purchase?

A
  • Critchel Down Rules
  • McCarthy Rules
  • Holford Rules
17
Q

What are the Critchel Down Rules?

A

The requirement for an acquiring authority to firstly offer the land back to the original landowner if the acquisition is no longer required.

18
Q

What are the 4 “McCarthy Rules”?

A

Rule 1: The injurious affection must be the consequence of the lawful exercise of statutory powers otherwise the remedy is by legal action.

Rule 2: Any injurious affection done without statutory authorisation, must result in a cause of action.

Rule 3: The value of the land or interest must be directly affected by physical interference with some legal right, public or private, that the claimant is entitled to make use of in connection with the claimant’s property.

Rule 4: The damage must arise from the execution of the works and not from their authorised use.

19
Q

What are the Holford Rules?

A

A set of guidelines for Overhead Line Routes.
Some include:
- Avoid certain areas
- Minimise Visual Effect of OHL
- Choose Tree and Hill backgrounds instead of sky
- Keep HV lines independent of other utilities

20
Q

What is a Calderbank Offer?

A

Where 2 parties are in dispute: one party can serve a Calderbank offer to resolve the dispute. If the recipient of the offer rejects it and does worse in court, then the 2nd party could be liable for all legal costs.

Case: Calderbank vs Calderbank.

21
Q

What is the principle of Equivalence?

A

The parties whos rights are being affected by the CPO should be in no worse or no better a position as before the works took place.

22
Q

What guidance details the requirements for RICS surveyors for Compulsory Purchase?

A

Compulsory Purchase and Statutory Compensation 2017

23
Q

What is the Notice to Treat (NTT) process for a CPO?

A
  1. Serve NTT as an intention to carry out CPO process.
  2. Minimum of 14 day period before Notice of Entry is served.
  3. Notice of entry reflects the date access can be taken but ownership isn’t granted until the conveyance and compensation is agreed.
  4. Acquiring Authority has 3 years from CPO to agree compensation or go to tribunal
24
Q

Give 3 methods of compulsory purchasing land.

A
  • DCO
  • Hybrid Bill
  • CPO
25
Q

What legislation and Guidance covers/ governs Compensation?

A
  • The Compensation Code
  • Compulsory Purchase Act 1965
  • Land Compensation act 1961
  • Land Compensation act 1973
    (The last 2 cover different things)
26
Q

What is your understanding of the compensation code?

A
  1. Governed by Statutory Legislation
  2. Heads of Claim (MV, IA, Disturbance, Fees and Severance)
  3. Principles of Compensation (Equivalence and Mitigation of losses)
  4. Disputes and Resolution (Upper Tribunals)
  5. Advanced Payments
27
Q

What is a red book valuation?

A

A formal property valuation carried out by an MRICS, which follows the RICS Valuation - Global Standards (AKA: the red book)

Tate APC 2025 (16 decks)

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