CPO

Question 1

WHEN INSTRUCTED TO UNDERTAKE A VALUATION FOR COMPULSORY ACQUISITION WHAT SHOULD YOU FIRST DO

Answer 1

ASCERTAIN THE PURPOSE OF THE ACQUISITION AND STATUTORY POWERS UNDER WHICH IT IS BEING ACQUIRED - DO NOT ASSUME THE POWERS BEING EXERCISED WITHOUT OBTAINING CONFIRMATION OF THE ACQUIRING AUTHORITY

Question 2

WHAT DOES THE COMPULSORY PURCHASE ACT 1965 SET OUT

Answer 2

SETS OUT A CODE OF LAW THAT SPELLS OUT THE POWERS OF THE ACQUIRING AUTHORITY TO IMPLEMENT A COMPULSORY PURCHASE ORDER AND THE RIGHTS OF THE PARTIES IN CONSEQUENCE OF THE CPO

Question 3

WHERE ARE THE PROCEDURES FOR COMPULSORY ACQUISITION SET OUT

Answer 3

ACQUISITION OF LAND ACT 1981 OR COMPULSORY PURCHASE (VESTING DECLARATIONS) ACT 1981 FOR GVD’s

Question 4

WHO MAY ENJOY THE RIGHT TO COMPENSATION AND UNDER WHAT STATUTES

Answer 4

1. A PERSON WHO IS REQUIRED TO CONVEY OR SURRENDER AN INTEREST IN LAND TO THE ACQUIRING AUTHORITY (FREEHOLDERS AND LEASEHOLDERS WHOSE UNEXPIRED TERM AT THE DATE OF ENTRY IS MORE THAN ONE YEAR
2. A PERSON WHO’S INTEREST IN LAND HAS DEPRECIATED IN VALUE BUT NO LAND HAS BEEN ACQUIRED (CPA 1965/PART 1 LCA 1973)
3. A PERSON WHO HAS BEEN DISPLACED FROM LAWFUL POSSESSION OF ANY LAND BUT WHO HAS NO COMPENSATABLE INTEREST IN SUCH LAND (S37 LCA 1973)

Question 5

WHAT STATUTORY ENTITLEMENTS ARE AVAILABLE TO PERSONS WHO HAVE BEEN DISPLACED FROM A DWELLING AND OR LAND OTHER THAN A DWELLING

Answer 5

HOME LOSS PAYMENTS (S29 LCA 1973)
BASIC LOSS AND OCCUPIERS’ LOSS PAYMENT (S33 LCA 1973)

Question 6

WHAT ARE THE TWO WAYS IN WHICH LAND CAN BE ACQUIRED

Answer 6

1. NOTICE TO TREAT FOLLOWED BY NOTICE OF ENTRY
2. GENERAL VESTING DECLARATION

Question 7

What is the procedure for acquiring land via the Notice to Treat and Notice of Entry route?

Answer 7

1) A Notice to Treat must be served within 3 years of the confirmation of the CPO and state that the acquiring authority is willing to negotiate for possession of the land.
2) The Notice of Entry must then be served to take possession of the land within 3 years of the Notice to Treat being served. A minimum of 14 days notice must given for entry,
3) Possession can take place but the Title will not be conveyed to the acquirer until the compensation has been paid.

Question 8

WHAT IS A GENERAL VESTING DECLARATION

Answer 8

1) A preliminary notice (A form of statement of effect of a GVD) must be served on all affected parties.
2) A GVD may be executed 2 months after the preliminary notice.
3) A second notice (Notice of making) is then served stating that the GVD has been executed and specifying a date when the land vests - at least 28 days notice must be given.
4) On the vesting date, possession can be taken and the Title is transferred.

AUTHORITY CANNOT WITHDRAW FROM ACQUISITION

Question 9

WHAT ARE HEADS OF CLAIM FOR CPO

Answer 9

1. DISTURBANCE
2. SEVERANCE
3. INJURIOUS AFFECTION
4. COMPENSATION FOR LAND TAKEN
5. SURVEYORS FEES

Question 10

WHAT IS SEVERANCE COMPENSATION and claimable under what statute

Answer 10

Land compensation act 1965 COMPENSATION FOR RETAINED LAND WHERE THERE IS A LOSS IN VALUE DUE TO LAND BEING SEVERED

Question 11

WHAT IS INJURIOUS AFFECTION COMPENSATION

Answer 11

The depreciation in value of the retained land as a result of the proposed construction on land acquired both for construction of works and their subsequent use.

Question 12

WHAT IS BLIGHT

Answer 12

WHEN THE VALUE OF A PROPERTY IS SUBSTANTIALLY REDUCED BECAUSE OF A PROPOSAL TO CARRY OUT PUBLIC WORKS AND THE OWNERS ARE UNABLE TO SELL AT AN UNAFFECTED MARKET VALUE

Question 13

UNDER WHAT STATUTE CAN BLIGHT COMPENSATION BE CLAIMED

Answer 13

TOWN AND COUNTRY PLANNING ACT 1990 - ACQUIRING AUTHORITY HAS LEGISLATIVE POWERS TO BUY BLIGHTED PROPERTY AT THEIR UNAFFECTED MARKET VALUE IF LAND IS WITHIN AREA OF CPO

Question 14

UNDER WHAT STATUTE CAN BLIGHT COMPENSATION BE CLAIMED

Answer 14

TOWN AND COUNTRY PLANNING ACT 1990 - ACQUIRING AUTHORITY HAS LEGISLATIVE POWERS TO BUY BLIGHTED PROPERTY AT THEIR UNAFFECTED MARKET VALUE IF LAND IS WITHIN THE AREA OF CPO

Question 15

WHAT COMPENSATION IS AVAILABLE TO SHORT-TERM TENANTS

Answer 15

1. CONTRACTUAL TENANTS SUCH AS ASSURED SHORTHOLD TENANTS FOR OVER A YEAR & TENANTS HOLDING UNDER A LEASE FOR A TERM OF YEARS THAT HAVE MORE THAN ONE YEAR TILL THE TERM EXPIRES DO HAVE AN INTEREST AND THEREFORE ENTITLED TO COMPENSATION (S20 CPA 1965) + ALSO ENTITLED TO HOME, BASIC AND OCCUPIERS LOSS PAYMENTS (S29-33 LCA 1973).
2. STATUTORY TENANTS UNDER THE RENT ACTS HAVE NO INTEREST IN LAND SO NOT ENTITLED (CPA 1965) HOWEVER MAY BE ENTITLED TO HOME, BASIC AND OCCUPIERS LOSS (S29-37 LCA 1973)

Question 16

CAN A PERSON HOLDING A LICENSE CLAIM COMPENSATION

Answer 16

NO, AS HAVE NO INTEREST IN LAND HOWEVER MAY QUALIFY FOR DISTURBANCE UNDER S37 LCA 1973 IF IN LAWFUL POSESSION

Question 17

what is a part 1 compensation claim and under what statute

Answer 17

Compensation for the use but not construction or existence of public works (part 1 land compensation act 1973)

Question 18

name some physical factors compensateable under part 1 claims resulting in the depreciation of value

Answer 18

NOISE
VIBRATION
SMELL
FUMES
SMOKE
ARTIFICIAL LIGHTING
DISCHARGE OF SOLID OR LIQUID SUBSTANCE

Question 19

WHAT IS THE RELEVANT DATE RELATING TO A PART 1 CLAIM

Answer 19

THE DATE THE HIGHWAY FIRST OPENED TO TRAFFIC OR PUBLIC WORKS FIRST USED

Question 20

WHAT KIND OF PUBLIC WORKS LIABLE FOR PART 1 CLAIMS

Answer 20

ANY HIGHWAY
AERODOME

Question 21

WHO IS QUALIFIED FOR A PART 1 CLAIM

Answer 21

ANYONE WHO HAS AN OWNERS INTEREST IN THE LAND SO EITHER THE FREEHOLDER OR A TENNANT NOT HAVING LESS THAN 3 YEARS UNEXPIRED AT THE DATE OF NOTICE OF CLAIM

Question 22

WHAT OTHER PROPERTY CAN PART 1 CLAIMS CAN BE MADE OF ANYTHING OTHER THAN RESIDENTIAL PROPERTY

Answer 22

AGRICULTURAL UNITS OR HERADITAMENTS WITH AN ANNUAL VALUE NO GREATER THAN 36K OR 44.2K FOR GREATER LONDON (INTEREST MUST BE THAT OF OWNER OCCUPIER

Question 23

WHAT IS THE FIRST CLAIM DAY

Answer 23

THE DAY IN WHICH THE FIRST CLAIM CAN BE MADE - 12 MONTHS AFTER THE RELEVANT DATE TO ALLOW USE OF WORKS TO SETTLE

Question 24

WHAT IS THE VALUATION DATE OF A PART 1 CLAIM

Answer 24

THE VALUATION DATE IS THE FIRST CLAIM DAY WHICH IS 12 MONTHS AFTER THE RELEVANT DAY

Question 25

HOW LONG IS A PART 1 CLAIM PERIOD OPEN FOR

Answer 25

6 YEARS STARTING FROM THE FIRST CLAIM DAY

Question 26

WHEN IS THE CONDITION OF THE INTEREST IN LAND FIXED

Answer 26

THE DATE THE NOTICE OF CLAIM IS SERVED

Question 27

WHEN CAN A CLAIM BE MADE BEFORE THE FIRST CLAIM DAY

Answer 27

WHEN A CLAIMANT HAS CONTRACTED TO SELL HIS INTEREST IN THE 12 MONTHS BETWEEN RELEVANT AND FIRST CLAIM DAY - CLAIM MUST BE MADE BEFORE HE SELLS FOR IT TO BE VALID

Question 28

Where are the 6 rules for assessing compensation found (section and act)

Answer 28

S.5 - Land Compensation Act 1961

Question 29

What are the 6 rules for assessing compensation and where are they found

Answer 29

S.5 LCA 1961

Rule 1: No allowance for compulsion

Rule 2: Open market value - no scheme world

Rule 3: Special suitability to be ignored

Rule 4: Increase in value due to illegal use to be ignored

Rule 5: Equivalent reinstatement

Rule 6: Disturbance compensation assessed on ‘value to owner’ basis not ‘open market value’

Question 30

How is land taken assessed

Answer 30

Open market value or equivalent reinstatement

Question 31

how is disturbance assessed and under what rule

Answer 31

Based off the principle of equivalence ie losses that are reasonable and a natural consequence of dispossession

Question 32

how are surveyors fees assessed

Answer 32

quantum merit basis - reasonable fee that would be expected for the work done

Question 33

Compensation available where no land taken

Answer 33

Part 1 claim for the use of the scheme under the land compensation act 1973

Section 10 claim under the compulsory purchase act 1965 for the construction and works associated with the scheme subject to the McCarthy rules

Question 34

What is betterment and under what act is it governed by

Answer 34

Land compensation act 1961 - The increase in value of retained land that is adjacent to the land acquired. The increase in value would be offset against the total compensation.

Question 35

What would be the typical Heads of Claim for a Tenant?

Answer 35

1) Value of unexpired interest of the tenancy
2) Severance and injurious affection
3) Any just allowance by an incoming tenancy
5) Rent reorganisation payment (If an AHA tenant)
6) Disturbance
7) Loss payments
8) Professional fees

Question 36

What is Material Detriment? and what act is it governed by

Answer 36

Land compensation act 1965 - A claimant is able to serve a counter-notice within 2 months of a CPO notice requesting the acquiring authority purchase the retained land that is no longer suitable or able to be farmed.

Question 37

What is the Pointe Gourde principle?

Answer 37

Any increase in the value of the land which is solely attributable to the scheme should not be paid as compensation.

Question 38

What are the Notification and Publicity requirements of making a CPO?

Answer 38

1) A notice must be published for 2 successive weeks in a local newspaper
2) A notice must be published on the site
3) Notices must be served on affected parties providing details of the scheme and the timeframe for objections - This must be at least 21 days from the date the notice was served.

Question 39

What is Basic Loss? and under what statute can it be claimed

Answer 39

Sections 106 to 110 of the Planning and Compulsory Purchase Act 2004 or LCA 1973

Basic Loss an additional payment made to reflect the inconvenience and disruption caused by the acquisition. The payment made is 7.5% of the value of the interest subject to a maximum payment of £75,000. To qualify you must have held an interest in the land for a year or more prior to possession.