In Queensland, the State Government and local authorities, known as constructing authorities, have the power to compulsorily acquire private properties for public purposes, such as infrastructure projects. While major projects are planned well in advance, actual land acquisitions often occur just before construction commences.
This can leave property owners in difficult positions for extended periods of time as potential buyers of their property will be deterred by the future development. Luckily, property owners facing such situations do have a legal option available to them - Early Land Acquisition Agreements.
Article by Natashia Blank, Argon Law Litigation & Dispute Resolution Solicitor.
What is an Early Land Acquisition Agreement?
An Early Land Acquisition Agreement is a legal arrangement that allows property owners to reach an agreement with constructing authorities for the early acquisition of their property before the commencement of construction.
In most cases, a solution exists where the constructing authority may agree to acquire your property early and cover the associated expenses like legal fees and valuation costs. Constructing authorities will typically have a competing policy in place that they are required to balance (being not to acquire too early).
As a result, during negotiations, property owners will usually be asked to demonstrate that because their property is designated or has been identified for a future public purpose, they are in a position of 'hardship'.
What Qualifies as 'Hardship' when it comes to Land Acquisition?
Hardship may include negative impacts on a property owner's ability to sell at fair market value, use the property as collateral, or succeed in development applications due to the designated land requirement.
If you’re currently facing a compulsory land acquisition, ask yourself if the land requirement has either:
- negatively impacted your ability to sell your property at fair market value;
- negatively impacted your ability to use the property as collateral for a new or existing loan; or
- is likely to negatively impact the success of any development applications you plan to lodge to develop the property.
Another matter that may be grounds for an Early Land Acquisition Agreement is whether the property owners have an immediate need to sell the property due to personal, domestic or socials reasons (ie: medical or employment reasons) and that the land requirement identified by the constructing authority is a contributing factor to the property owner's inability to do so.
Are there any Special Considerations for Property Developers facing Land Acquisition?
If the land required is owned by a property developer, the developer's proposed project will almost certainly be no longer viable. Property developers can therefore also apply for an Early Land Acquisition Agreement in Queensland if their proposed projects become unviable due to the land requirement identified by the constructing authority.
What Compensation can Property Owners expect in an Early Land Acquisition Agreement?
Compensation under an Early Land Acquisition Application will typically align with what is provided under the legislation as being claimable from the constructing authority. If you are a property owner who has received notice from a constructing authority that a future project will directly impact your property, it is important that you obtain legal advice as early as possible.
Why Should I seek an Early Land Acquisition Agreement?
Completing an Early Land Acquisition Agreement can provide relief to property owners who are facing personal hardships, enabling them to sell their property at fair market value or use it as collateral for loans without being deterred by future development.
By understanding the process, demonstrating hardship, and seeking timely legal advice, property owners can navigate these complex situations and secure a better outcome for their properties. If you find yourself in such a situation, don't hesitate to explore the possibility of an Early Land Acquisition Agreement and protect your rights as a property owner.
Argon Law is here to help.
We hope you are now better prepared if you are served with a notice of intention to resume your land and are experiencing personal hardship as a result. Property owners should seek legal advice as soon as they receive notification from a constructing authority that a future project will directly impact their property.
Please note this article is to be used as a guide only and we encourage you to get in touch with one of our experienced land resumption lawyers to ensure your situation is handled in a matter that best serves your interests.
If you have any queries about this or any other legal issue, then please contact us on 07 5443 9988 or [email protected].
Argon Law is a Sunshine Coast law firm based in Maroochydore. We are commercial lawyers and property lawyers and are eager to assist you in any way we can.
