CPO Flashcards

1
Q

What is the procedure to make a Compulsory Purchase Order? What act is it under? (FRRMoNpOCoIWrD)

A

The procedure is set out under the Land Acquisition Act 1981:

1) Formulation
2) Resolution
3) Referencing
4) Making the order
5) Notification and Publicity
6) Objections
7) Consideration of objections
8) The Inquiry
9) The Written Representation
10) The Decision

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2
Q

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

A

1) The Value of the Land Taken
2) Severance and Injurious Affection
3) Disturbance
4) Loss Payments
5) Professional Fees

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3
Q

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

A

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

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4
Q

What is severance?

A

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

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5
Q

What is Injurious Affection? And Section when land is taken?

A
  • S7 Compulsory Purchase Act 1965
    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.
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6
Q

What is Betterment?

A

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.

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7
Q

What is Material Detriment?

A

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.

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8
Q

What are the Rules of Valuation in respect of a compulsory purchase acquisition? and Where do you find them?

A

Set out in S.5 of the Land Compensation Act 1961:
Rule 1 - No allowance shall be made account of the acquisition being compulsory.
Rule 2 - The value shall be the same as if the land was sold in the open market by a willing seller.
Rule 2A - The value should be assessed with the no-scheme principle.
Rule 3 - The special suitability of the land shall not be taken into account, where it could be applied only in pursuance of the scheme and statutory powers.
Rule 4 - Where the land is used unlawfully, no increase in value should be taken into account.
Rule 5 - Where the land is used for a purpose of such a nature that there is no demand or market for, the compensation may be assessed on the cost of equivalent reinstatement.
Rule 6 - The provisions of rule (2) shall not affect the assessment of compensation for disturbance.

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9
Q

What is the Pointe Gourde principle? Case study?

A

Any increase in the value of the land which is solely attributable to the scheme should not be paid as compensation.
Wilson vs Liverpool City (1971)

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10
Q

What way can AA acquire land?

A

1) By Agreement
2) Notice to Treat followed by Notice of Entry
3) General Vesting Declaration

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11
Q

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

A

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.

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12
Q

What is the procedure for acquiring land by a General Vesting Declaration?

A

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.

Must be used within 3 years

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13
Q

What is a blight notice?

A

A blight notice can be served on an acquiring authority requesting the acquiring authority to purchase the property at its untainted value. The value of the property must have been reduced by the scheme. The acquiring authority have 2 months to respond to the blight notice.

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14
Q

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

A

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.

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15
Q

What is the timeframe for notifying parties of an Inquiry in respect of a CPO?

A

42 days notice must be given for the Inquiry.

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16
Q

What is Basic Loss?

A

Additional payment for the inconvenience. (7.5% Max £75k)
- Must have owned 1 year prior.

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17
Q

What is Occupiers’ Loss?

A

-Additional payment for the inconvenience. (2.5% Max £25k)
- Must have owned 1 year prior.

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18
Q

What is Home Loss Payment?

A

-Freehold or lessee with 3 + years.
- Entitled to 10% (£64K max)

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19
Q

How are Surveyors’ Fees assessed?

A
  • Quantum Meruit Basis
  • Hourly rate basis reflecting complexity for each case)
  • Ryde Scale +30% is still used for scale (Depends on claim amount)
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20
Q

When can compensation be claimed when no land is taken?

A
  • The McCarthy Rules - Section 10 under Compulsory Purchase Act 1965. (induriuse affection)
  • Part 1 of the Land Compensation Act 1973
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21
Q

What is a Part 1 claim?

A
  • Land Compensation Act 1973.
  • depreciation in the value of land due to the physical factors caused by the use of the public works: Noise, vibration, smell, fumes, smoke, artificial light and discharge.
  • S10 Compulsory Purchase Act 1965
  • 1 year and 1 day
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22
Q

CPO Key Legislation?

A

Water industry act 1991
Compulsory Purchase Act 1965
Acquisition of Land Act 1981
Compensation Land Act 1973 & 61

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23
Q

CPO Timeframe?

A

18 Months +

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24
Q

Land Compensation Act 1961 Case study for betterment?

A

Horn V Sunderland
“Compensation should be the claimant in the position he was before the scheme took place, but no better off.”

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25
Q

What are the 6 rules of Compensation?

A

Set out in S.5 of the Land Compensation Act 1961:
Rule 1 - No allowance shall be made account of the acquisition being compulsory. (Basic loss payments)
Rule 2 - The value shall be the same as if the land was sold in the open market by a willing seller.
Rule 2A - The value should be assessed with the no-scheme principle.
Rule 3 - No consideration of Adaptability of the land.
Rule 4 - Where the land is used unlawfully, no increase in value.
Rule 5 - Where the land is used for a purpose of such a nature that there is no demand or market for, the compensation may be assessed on the cost of equivalent reinstatement.
Rule 6 - Disturbance costs if you were to relocate (legal fees, removal costs)

26
Q

What does vested mean?

A

Formal procedure to take ownership

27
Q

Hoo Mill Lane, what was the act for HS2?

A

High-Speed Rail Act 2023 (wm to crewe)

28
Q

15 Landaff Drive, what is the act for water pipes? and what sections?

A

Water Industry act 1991
Powers are in Section 159 (water)

Water resources act 1991
Similar powers in Section 154-174

29
Q

What is Safeguarding?

A

Protects land from conflicting development

30
Q

Whats a Blight Notice?

A

Application to get authority to buy property.
- Safeguarding was the trigger or ‘Statutory Blight’

31
Q

what is Crichel Down Rules?

A

Offer land back to Owner at Market Value

32
Q

Part 1 Claims can be cause by what?

A

Smell, Lights, smoke, Vibrations

33
Q

Part 1 claims, how did you decide on the discount?

A

used a mixture of over previous scheme settlements as evidence.
- One property was purchased before the scheme and then sold after (used the discount as a reference)

34
Q

what is APR? and where can you get guidance on it?

A
  • Anytime when the CPO is confirmed
  • We did safegaurd areas.
  • 90% of there values

S52 LCA 1973

35
Q

What are the 3 types of Orders?

A

CPO
Development Consent Orders (Planning Act 2008)
Transport and Works Act Order (Transport and Works Act 1992)

36
Q

Case Law for induriuse effect?

A

Wildtree Hotels Ltd v. The Borough of Harrow (2001)
Compensions is payable to the damages to the claimant interest in the land

37
Q

The over arching stages? (6)

A
  1. Consultation (contact effected partys)
  2. Land referencing (identification of areas to include)
  3. Order application (AA submits order to get rights)
  4. Objections (period to make written objections) try to limit these.
  5. Authorisation (If deemed appriate)
  6. Taking the land.
38
Q

Whats in the Compensation Code?

A
  • Land Compensation Act 1961
  • Compulsory Purchase Act 1965
  • Land Compensation Act 1973
39
Q

What is an APR?

A

S.52 Land Compensation Act 1973 (land that can’t be farmed)
- Writing request
- 90% of their anticipated value
Paid within 2 months

40
Q

Basic loss and occupiers loss acts?

A

S33a and b LCA 1973

41
Q

What are Macartheys rules? And case?

A

Metropolitan v McCarthy (1874)

  1. Done by act
  2. If not by act would it be actionable
  3. Physical damage
  4. Damage must arrive from road use not the construction
42
Q

Limitation window for Part 1 claims?

A

6 years

43
Q

What section does the Gas are relevant?

A

S 9 set them out

44
Q

What happens if a claim cant be agreed?

A

Referral to Land Tribunal

45
Q

What’s the Water Resources act 1991 Powers relate to?

A

Environmental agency power.
- Similar to Water Industry Act 1991 powers (CPO and rights over)
- relates more to pollution of water and management of rivers

S. 154-174

46
Q

The powers in Water Industry Act 1991 relate to?

A

-Subject to Secretary of State
- CPO of land
- rights over it (inspections, repairs and maintenance)

S. 159 for water supply
S. 160 for sewerage

47
Q

Is there any guidance on valuations for CPO?

A

VPGA 16 - UK red book supplement 2023

48
Q

Heads of claims with statutory titles next to each part? (landowner)

A
  1. Market Value (Rules 2 S.5 LCA 1961)
  2. Basic loss and occupiers (S.33a&b LCA 1973)
  3. Injurious affection and severance (S.7 CPS 1965)
  4. Disturbance (Rules 6 S.5 LCA 1961)
49
Q

Difference between McCarthy’s rules and Part 1 Claims?

A
  • Part 1 deals with depreciation due to use (deprecation in house)
  • McCarthys is injurious affection caused by execution of works (right of way being blocked)
50
Q

Use of without Prejudice?

A
  • Can’t Disclose the correspondence within a court.
  • Used between agents for a cliam.
  • Dont what the figures to be held further down the line.
51
Q

GVD Legislation?

A

Compulsory purchase act 1981

52
Q

CPO Legations for the procedure?

A

Part 2 Acquisition of Land Act 1981

53
Q

What LURA 2023?

A

An update to the ALA act

54
Q

Whats is LURA 2023?

A

Levelling Up and Regeneration Act 2023

55
Q

what does ‘Surveyors advising in respect of compulsory purchase and statutory compensation’ do

A

Sets out mandatory behaviours for surveyors to us during the process.

Sets out 21 mandatory rules

56
Q

Whats in the professional standard update?

A

more clarity with respect to housing development as set up by the new government

57
Q

Name some of the Mandatory obligations?

A

Red book standards
Reports
Fees

58
Q

Pinot Guarde Principle?

A

Any increase that is attributable by the scheme can not be compensated.

59
Q

Section 6 LCA?

A

‘no Scheme world’
1. Scheme is cancelled on VD
2. No Action has been taken
3. No Prospect for the same scheme
4. No Other projects are to be carried out
5. Disregard devaluation due to the prospect of the scheme & the fact that the land was blighted.

60
Q

Section 6 LCA relates to which rule in Section 5?

A

Rule 2a, No scheme principle

61
Q

Pinot Guarde Principle, relates to which rule in Section 5?

A

Rule 3