Glossary of property acquisition terms

Acquiring Authority

A NSW authority that has legal power to acquire property.

Acquisition (or acquire)

Acquisition of land means an acquisition of land or of any interest in land.

Acquisition by agreement

The process by which property is acquired for a public purpose by agreement with the owner.

Acquisition notice

A notice published in the NSW Government Gazette. When an acquisition notice is published, it means that the Governor of NSW has approved the compulsory acquisition and ownership of the property transfers to the acquiring authority.

Refer to Section 19 of the Land Acquisition (Just Terms Compensation) Act 1991

Compensation notice

The acquiring authority must issue the former landowner with a compensation notice which includes the determination of compensation. This usually occurs within 45 days after the publication of the acquisition notice. The compensation notice officially notifies the former landowner that the property has been compulsorily acquired and provides the amount of compensation offered as determined by the Valuer General.

Refer to Section 42 of the Land Acquisition (Just Terms Compensation) Act 1991

Compulsory acquisition

Compulsory acquisition of land means the acquisition of the land by compulsory process under the Land Acquisition (Just Terms Compensation) Act 1991. 

Deed of Release and Indemnity

A formal document that confirms the agreed compensation is the only compensation payable.

Disadvantage resulting from relocation (formerly referred to as solatium)

Financial compensation for the non-financial disadvantage, as a result of having to relocate his or her principal place of residence due to the acquisition.

Refer to Section 60 of the Land Acquisition (Just Terms Compensation) Act 1991

Disturbance (loss as a result of)

The financial costs reasonably incurred as a resulting of the acquisition of property.

Refer to Section 59 of the Land Acquisition (Just Terms Compensation) Act 1991

Government Property

Property owned by a federal, state or local government entity.

Hardship acquisition

The process whereby property is acquired following an application for owner-initiated acquisition due to hardship.

Refer to Division 3 Part 2 of the Land Acquisition (Just Terms Compensation) Act 1991

Land and Environment Court

A specialist NSW environmental and planning court which has the authority to hear disputes of compensation arising from property acquisitions.

Land Acquisition (Just Terms Compensation) Act 1991

The legislation which governs the acquisition of property in NSW and defines compensation entitlements.

Market value

The amount that would have been paid for the land if it had been sold at that time by a willing but not anxious seller to a willing but not anxious buyer.

The ‘market value’ will disregard (for the purpose of determining the amount that would have been paid):

• any increase or decrease in the value of the land caused by the carrying out of, or the proposal to carry out, the public purpose for which the land was acquired, and
• any increase in the value of the land caused by the carrying out by the authority of the State, before the land is acquired, of improvements for the public purpose for which the land is to be acquired, and
• any increase in the value of the land caused by its use in a manner or for a purpose contrary to law.

Refer to Section 56 of the Land Acquisition (Just Terms Compensation) Act 1991

NSW Government Gazette

The official Government Gazette is the permanent public record of official notices issued by the NSW Government

Refer to NSW Government Gazettes 2001-2019

Partial acquisition

Where only part of a property is acquired for a public purpose.

Private Property

Property which is not owned by a federal, state or local government entity.

Proposed Acquisition Notice

A notice of intention to acquire property by compulsory process (commonly known as the PAN).

Refer to Section 11 of the Land Acquisition (Just Terms Compensation) Act 1991

Severance (loss as a result of)

The amount of any reduction in the market value of any other property of the person entitled to compensation which is caused by that other property being severed from other proeprty owned by that person.

Refer to Section 58 of the Land Acquisition (Just Terms Compensation) Act 1991

Special value

The financial value of any advantage, in addition to market value, to the person entitled to compensation which is incidental to the person’s use of the property.

Refer to Section 57 of the Land Acquisition (Just Terms Compensation) Act 1991

Substratum acquisition

Where interest in a substratum is acquired. 

Valuer General

An independent Statutory Officer who has responsibility to make determinations of compensation for compulsory acquisitions.

Whole acquisition

Where the whole of a property is acquired for a public purpose.