Proposed Acquisition of Land Bill 2023

Why does this area of the law require reform?

Currently, once a CPO becomes operative, the acquisition of land is completed using the notice to treat procedure (the “Current Procedure”). The LRC has identified several shortcomings in the Current Procedure including:

• No prescribed time limit within which the relevant authority must serve a notice of entry following service of a notice to treat;
• When a notice of entry is served, no time limits are prescribed within which the relevant authority must enter possession;
• No interim or final compensation payable to the owner on loss of possession but is paid much later when such compensation is determined; and
• Date of valuing land to assess compensation is when the notice to treat is served, while the owner will lose possession at a later date, and the compensation will actually be assessed at further later date. Therefore, the owner is denied fair market value.

What will change under the Bill as currently drafted?

The LRC has recommended replacing the Current Procedure with a vesting order procedure (the “New Procedure”). The key objective of these changes is to simplify the system of acquisition and compensation that fairly balances the rights of owners with the requirement of authorities to acquire land in an efficient manner. Some of the changes in the New Procedure include:

• The imposition of strict time limits:

1. The relevant authority has 12 months from the date when the CPO becomes operative to either proceed with the acquisition or agree in writing on an extension of time period with the owner;
2. The vesting date can be agreed between the relevant authority and owner or can be a date no earlier than 3 months after and no later than 6 months after the date on which the vesting order was served;

• Subject to satisfactory demonstration of title, an advance payment of 90% of the authority’s estimate of the owner’s entitlement to compensation is payable on the dates set out in the Bill. The authority can be required to explain how the estimate was arrived at;

• Disputes concerning compensation are to be determined by the Valuation Tribunal and not a property arbitrator as currently is the case; and

• The Bill contains detailed provisions as to how the compensation is to be determined.

What should I, as a landowner do if served with a notice to treat?

The progress of the Bill and the timing of the notice to treat will determine whether your situation comes within the Current Procedure or the New Procedure. If you are served with a notice to treat, you should take immediate advice as to the next steps open to you to ensure that you protect your interest and, if applicable, the timely payment of compensation.

Next Steps

Whilst it is yet to be determined whether the LRC recommendations to revamp the CPO procedure will be implemented, the Bill is to be welcomed by both local authorities and land owners as an attempt to simplify the current procedure in relation to CPOs.