CPO Flashcards
What is a usual CPO procedure? basic process and detail?
- The Basic process: Authorization Act of Parliament>Promotion of Scheme>Notice of Acquisition and Entry>Payment of Compensation
What is a detail CPO procedure?
- Preliminary inquiries
- CPO preparation and submission
- Notification, and Objecting to a CPO (21 days) - & eventual inquiry
- Decision (confirmation/modify)
- Possession and acquisition
- Compensation
What are CPO powers? what is needed for ?
Legislative powers which enable public bodies to acquire land compulsorily.
Used to help deliver social, environmental and economic change.
What is principle for a CPO to be confirmed? what does the Confirming Authority expect?
- There needs to be a compelling case in the public interest.
- The confirming authority expects the AA to demonstrate they have taken reasonable steps to acquire all of the land and rights by agreement in the first instance.
Name some of the entities who have CPOs powers to acquire?
- Government (various departments)
- Local authorities (national park authorities)
- Statutory undertakers
- Government executive agencies (e.g. Homes England)
- Health service bodies
Name some of the acts trough which you can obtain powers?
- Royal Prerogative
- Private Act (Special Act)
- Public General Act
- Transport and Works Act 1992
What are the 6 rules for assessing compensation and where are they found?
They are stated under Sec.5 of the Land Compensation Act 1961:
- R.1 No scheme world (CP to disregarded)
- R.2 Market Value (as if sold on Open Market)
- R.3 Special Value/suitability to be disregarded (Point Gourde Principle)
- R.4 Any uplift from illegal use must be disregarded
- R.5 Equivalent reinstatement (when there’s no market evidence)
- R.6 Disturbance - based on the value to claimant (and R.2 shall not affect the assessment or any other matter directly based on the value of land)
What type of notices can be served to exercise CPO powers?
- GVD
- Notice to Treat and Entry
- Notice for temporary occupation – Neighbourhood Planning Act 2017 (3 months notice)
What are the differences between a GVD and NTT?
- General Vesting declaration – used to transfer the ownership before the compensation is agreed.
- NTT is legal notice to inform the owner that the AA intends to take possession and buy the land, and states a date when the entry will be made for the purpose of carrying out the works.
- Another difference is that the NTT will have details of the compensation that will be paid, whereas a GVD will not state any sums.
What are the pros and cons of GVD and NTT?
- GDV allows the authority to acquire a clean title of the land regardless of any type of title/interest (even the ones not spotted) and sets a transfer date before the compensation is agreed; However, the GDV cannot be withdrawn so has no flexibility once served;
- NTT needs to be served upon all land interest present on the land and can be modified or withdrawn if needed; If any parties are left out the AA it can cause big issues;
What are the key principles outlined in RICS: Surveyors Advising in Respect of Compulsory Purchase and Statutory Compensation (2017)?
Key principles that are manadatory to follow:
- Competence - understand statute and CPO code
- Duty in providing advice - advise on assumptions made / estabilsh material evidence / provide balanced advice
- Changes to instruction - ensure no conflict arises
- Inspection - adequate to provide advice, record of condition
- Reporting - consider all matters relevant to instruction
- Fees - must be reasonable / client liable for fees not borne by AA
- Recording time
- Disputes - through Upper Tribunal or ADR (RICS)
What sections in the red book might you have reference too when carrying out CPO instructions?
- VPGA 16 Global Standards UK Supplement
- General requirements of PS1 and PS2
- VPS 1-5 not mandatory – VPS 1 and 3 provide a useful checklist
What are the heads of claim?
- Market Value
- Severance and Injurious Affection
- Disturbance
- Loss Payments
- Interest
What bases can be adopted to value acquired land?
- Open MV (EUV)
- Ransom Value
- Development Value
- Hope Value
What is the definition of Rule 2?
- The amount the land might realise if it was sold in the open market by a willing seller
How does Rule 2 differ to MV red book definition?
- No willing buyer in the definition
What is the compensation Code?
Collective word to describe case law and legislation governing Compulsory Purchase
What are the main statutes governing Compensation Code?
- Land Compensation Act 1961
- Compulsory Purchase Act 1965
How did you calculate loss payments?
- Home loss Payments: 10% of MV subject to a cap (£78,000 or 7,800), regularly reviewed. Claimant must be in occupation as main residence for 1 year prior to displacement.
- Basic Loss Payment: 7.5% MV subject to cap (£75,000). Applies to all claimants with interest in land held for at least 1 year before relevant date (date of valuation).
- Occupier’s loss – greater of (subject to max £25,000):
- 2.5% of the value of the interest
- £2.5 psm of land
- £25 psm of GEA of building
- or min £2,500
Qualifying interest – freehold or interest as tenant for longer than one year prior to displacement
What is Betterment? what is the relevant sec?
Betterment occurs when there is an uplift in value on the retained land as a result of the scheme/development. Any value uplift is to be offset against the compensation for the land taken.
- S7 Land Compensation Act 1961
Is there a limit for implementing a CPO from confirmation?
Yes, 3 years
What is Disturbance and who is entitled to?
Disturbance comprises any additional costs related directly to land taken through compulsory purchase, such as relocation, temporary disruption to business or business or total extinguishment.
Disturbance can be claimed by freeholder and occupier, that can prove a loss arising from the scheme.
What is the difference between Severance and Injurious Affection? Where is this outlined?
- Severance is the decrease in value of the retained land as a result of physical impact of the land taken
- Injurious Affection is the decrease in value of the retained land as a result of use of the scheme (nuisance).
How is Severance and Injurious Affection calculated?
Value of the land before and value of land after = diminution in value
