The Valuer General's role in compulsory acquisitions

Learn about the Valuer General's role in determining compensation for compulsory acquisitions of land in NSW.

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About compulsory acquisition

In NSW, any level of government, including state-owned corporations, can acquire private land for public purposes. This can include:

  • the entire property or part of it

  • interests in the property, like easements for utilities.

The Land Acquisition (Just Terms Compensation) Act 1991 (the Just Terms Act) outlines the process. It requires authorities to negotiate with landowners for at least six months to reach an agreement. The Valuer General is not involved in most of these cases.

If an agreement cannot be reached, the Governor of NSW can approve compulsory acquisition. In such cases, the Valuer General will determine the compensation amount the authority must offer for the land.

For information on the land acquisition process, see compulsory acquisitions. The Valuer General’s role in this process is to determine compensation. Read on to learn more about this role. 

The role of the Valuer General

The Valuer General is an independent statutory officer appointed by the NSW Governer General. They oversee the state's land valuation system. This includes setting the standards and policies for determining compensation.

The Valuer General does not act for either the landowner or the acquiring authority. This separates the government’s decision to acquire land from the decision on how much to pay for it.

The Land Acquisition Act requires the Valuer General to:

  • determine how much the authority must offer the landowner for land it compulsorily acquires

  • ensure the compensation is at least the market value of the land, unaffected by the proposal.

We encourage you to give us information, ask questions and clarify any concerns as needed throughout the process.

We will consider all information that you and the acquiring authority provide when determining compensation. 

How compulsory acquisition works

This timeline shows you the stages of property acquisition and how compulsory acquisition works.

1

Stage 1: Proposed acquisition

Proposed acquisition notice

The first formal step in the compulsory acquisition process is for the acquiring authority to send you a proposed acquisition notice.

This includes:

  • a description of the land
  • the acquiring authority
  • the timeframe for the compulsory acquisition.

The acquiring authority will send this to all parties with an interest in the land. This includes those lawfully occupying the land or registered on the land title. It must also tell the Valuer General. 

An acquiring authority cannot compulsorily acquire your land without first giving you a proposed acquisition notice.

Negotiation

You can continue to negotiate with the acquiring authority after you have received the proposed acquisition notice.

If you reach an agreement, you can finalise the acquisition by a contract and transfer or formal agreement.

Section 55 of the Just Terms Act sets out the things you can claim, called heads of compensation. These are the same for agreement and compulsory acquisition, however not all heads of compensation need to apply in cases of hardship. Page 10 of Your guide to the valuer generals role in compulsory acquisition has more information on heads of compensation. Page 11 has more information on hardship. 

If you and the acquiring authority agree, the Just Terms Act also allows compensation in the form of land or carrying out works.

Our first contact

At this stage, we will write to you to:

  • explain the Valuer General’s role
  • remind you to complete your claim for compensation and provide it to us
  • introduce your coordinator, who will help you and answer questions
  • advise you on how to access professional help.

In some cases, we will start work on the determination of compensation as soon as we receive a proposed acquisition notice, before your land is compulsorily acquired.

We may reach out to discuss this with you. But we will not share any valuation information at this time, as you still might reach an agreement with the acquiring authority.

2

Stage 2: Claim for compensation

Your claim

Once the acquiring authority has issued a proposed acquisition notice, the landowner and anyone else with an interest in the land should complete a section 39 claim for compensation form.

You can get this form from:

You should include the full details of your claim. The information on this form will be considered in the compensation determination, so it is important that you complete this form carefully. You can request a conference to explain your claim to us.

Send your completed form to:

Just_Terms@dpie.nsw.gov.au or

Compensation Valuations
Value NSW
Level 5, 12 Darcy Street
Parramatta Square
Parramatta NSW 2150

You can also send your form to the acquiring authority.

Page 10 of Your guide to the valuer generals role in compulsory acquisition has more information on the things you can claim under the Just Terms Act

3

Stage 3: Compulsory acquisition

Land ownership transfer

If you do not reach an agreement to sell your land through negotiation, the acquiring authority may compulsorily acquire it.

To do this, the acquiring authority must publish an acquisition notice in the Government Gazette. This normally occurs after 90 days (and up to 120 days) from when it issues the proposed acquisition notice.

When this acquisition notice is published, it means:

  • the Governor of NSW has approved the land acquisition
  • land ownership transfers to the acquiring authority
  • the Valuer General must determine compensation.

The acquiring authority must then give you a compensation notice, including the Valuer General’s determination of compensation, within 45 days.

If the land was your main residence or business, you can generally stay there for three months unless the acquiring authority’s responsible minister approves a shorter timeframe.

To ask about occupying the land after the acquisition, contact the acquiring authority.

Our next contact

After your land has been compulsorily acquired, we will write to you:

  • about determining compensation
  • to explain how we will share information between you and the acquiring authority
  • to give you copies of any information we hold to check for factual accuracy.
4

Stage 4: Valuation

Our valuer

A qualified, experienced and independent valuer with no conflict of interest will assess your land to work out the amount of compensation.

To do this, the valuer will consider all information that both you and the acquiring authority provide, as well as independently requested reports.

The valuer may contact you or your representative to arrange an inspection of the property. They can also give you information on the process. You can:

  • attend the inspection or send a representative
  • ask questions.

The valuer will also contact the acquiring authority to understand issues it would like considered.

Your own valuer

As a landowner or person with an interest in the acquired land, you can also hire your own valuer during negotiation or compulsory acquisition.

The valuer must:

  • be an independent expert who is qualified to perform the valuation
  • act as an expert, not an advocate
  • comply with professional standards in their valuation.

Valuation fees that you reasonably incur and that are in connection with the acquisition, will form part of the compensation determination.

For a list of qualified valuers, contact professional membership associations such as:

The Value NSW valuer’s report and issues response

The valuer’s report and issues response will:

  • show what the valuer has considered
  • explain how the compensation was determined
  • address the concerns you raised in your claim for compensation form
  • address issues raised by the acquiring authority.

Valuers must consider the heads of compensation listed in section 55 of the Just Terms Act:

  • the market value of the land on the acquisition date
  • any special value to the landowner
  • any loss due to severance
  • any loss due to disturbance
  • the disadvantage from relocation
  • any change to the value of other land that adjoins or is severed from the acquired land, if this change is due to the public purpose for which the land was acquired.

Senior valuers will do quality assurance on the Valuer General’s behalf. They will review the valuation report and check all aspects of the determination, including the valuer’s assessment of the land’s market value and supporting sales evidence.

5

Stage 5: Determination of compensation

Your review

We will send a preliminary valuation report and issues response to you and the acquiring authority to review. This will outline the compensation amount and how it was determined.

You have 10 working days to correct any errors of fact before we finalise the determination.

You may request another conference if you wish to explain any errors of fact only. The conference is not for discussion of the amount of compensation.

The Valuer General’s decision

When the preliminary valuation report and issues response are finalised, we will give you and the acquiring authority the determination of compensation, the final report and final issues response.

This is the Valuer General’s decision on how much compensation you will receive. It is the final part of the Valuer General’s formal role in this process.

Compensation notice

The acquiring authority must give you a notice that includes the determination of compensation.

The compensation notice:

  • officially notifies you that your land has been compulsorily acquired
  • offers to pay the amount that the Valuer General has determined
  • informs you of your right to object to the amount offered.

Agreement

Once you agree to the determination of compensation by signing a deed of release, the acquiring authority must pay you:

  • the compensation amount in full within 28 days of receiving a deed of release and indemnity
  • interest on that amount from the acquisition date until it makes the payment.
6

Stage 6: Disputes

Land and Environment Court

If you are not satisfied with the compensation the acquiring authority offers you based on the Valuer General’s determination, you can lodge an objection with the Land and Environment Court.

Court proceedings involving claims for compensation are between you and the acquiring authority. In the event of Court proceedings, the acquiring authority, subject to your agreement, is required to pay you 90% of the compensation offer in advance.

You must lodge your objection within 90 days of receiving the acquiring authority’s compensation notice. If you do not lodge your objection within 90 days, the offer is deemed accepted. However, the Court may still consider your objection if you have a good reason for lodging late.

You can contact the Land and Environment Court at:

Your protections under the Just Terms Act 

The Land Acquisition (Just Terms Compensation) Act 1991 (Just Terms Act) sets out how authorities can acquire land. Here's what it does:

  • directs the acquiring authority to negotiate with the landowner for at least six months to acquire land by agreement

  • lists what matters are to be considered

  • allows compulsory acquisition if agreement is not possible

  • ensures just compensation if an authority acquires land not for public sale

  • requires a state authority to acquire land designated for a public purpose when an owner demonstrates hardship

The Just Terms Act does not apply to land that is publicly for sale and acquired by agreement.

It does apply when an authority could compulsorily acquire the land not offered for public sale but comes to an agreement with the landowner instead. 

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