Compulsory acquisition
If a compensation agreement cannot be reached, the acquiring authority may begin the compulsory acquisition of your property.
If an agreement cannot be reached
If you and the acquiring authority have been unable to reach an agreement after the minimum 6-month negotiation period, the acquiring authority may commence compulsory acquisition of your property by issuing a Proposed Acquisition Notice (PAN).
You will receive a Proposed Acquisition Notice (PAN) that will state that the acquiring authority intends to compulsorily acquire your property after a certain period, usually 90 days. This timeframe can be shortened in certain circumstances in accordance with the Land Acquistion (Just Terms Compensation) Act 1991.
You can still continue negotiations with the acquiring authority when a PAN has been issued, in an attempt to reach agreement.
The NSW Valuer General may take part in determining the amount of compensation you will receive. The Valuer General is an independent body and does not act for the property owner or the acquiring authority.
Key stages
Find out what to expect at each step of the compulsory acquisition process.
You receive a Proposed Acquisition Notice
If you have not reached an agreement on compensation with the acquiring authority following the expiry of the minimum 6 month negotiation period, you may be sent a Proposed Acquisition Notice (PAN). The issuance of the PAN indicates acquiring authority’s intention to commence compulsory acquisition. The acquiring authority will also advise the Valuer General and the Registrar General a PAN has been issued.
You will have the opportunity to lodge a claim for compensation with the acquiring authority or the Valuer General.
You will have at least 60 days from receiving the PAN to complete the claim for compensation.
What you can do
- Complete the Claim for Compensation form (PDF 438.79KB) and include all information you would like the Valuer General to consider when making the determination of compensation.
- Continue working to reach an agreement with the acquiring authority.
- Seek advice from your lawyer and acquisition support team on the compulsory acquisition process.
Negotiations may continue
Negotiations between you and the acquiring authority can continue and an agreement can still be reached after a PAN has been issued.
The Valuer General will contact you to explain their role.
Your Claim for Compensation form will ensure your interests are recorded and the Valuer General will take this into consideration.
An independent valuer will make a new valuation for the determination of your compensation, on behalf of the Valuer General.
What you can do
- Provide any additional information requested by the Valuer General in a timely way.
Your property is acquired
If an agreement still is not reached, the acquiring authority will compulsorily acquire your property.
The acquiring authority will then publish a notice in the NSW Government Gazette, the permanent public record of official notices issued by the NSW Government.
Publication of the notice in the Gazette means:
- the NSW Governor has approved the acquisition
- the Valuer General will determine the compensation owed to you
- the acquiring authority becomes the owner of the property.
If the property is your principal place of residence, or your place of business, you may be able to stay there for 3 months after it has been compulsorily acquired, unless the acquiring authority needs it to be vacated earlier.
What you can do
- Continue to seek legal and valuation advice.
- Arrange a time for a representative of the Valuer General to inspect your property so a full valuation report can be made.
The Valuer General determines compensation
The Valuer General will determine the amount of compensation based on their own independent valuation and information provided by both you and the acquiring authority including valuation reports previously prepared by your and the acquiring authority’s valuer.
The Valuer General shares all valuation information with both you and the acquiring authority before determining compensation.
What you can do
- Remain in contact with the Valuer General.
You receive a Preliminary Valuation Report
The Valuer General will send you a preliminary valuation report before finalising their determination.
The preliminary report shows the proposed amount of compensation and how it was determined.
The Valuer General will provide the preliminary report to both you and the acquiring authority to review and respond to.
You generally have 10 working days to give feedback on the report before the Valuer General finalises the determination.
What you can do
- Consider the Valuer General’s Preliminary Valuation Report and submit your feedback. This feedback will be addressed before the Valuer General issues the final determination.
You receive a compensation notice
When the valuation report is finalised, the Valuer General will deliver a determination of compensation. This determination must be used by the acquiring authority to issue you with a compensation notice.
If you accept the offer in the compensation notice, you will receive payment within 28 days of the acquiring authority receiving a signed Deed of Release and Indemnity.
You will be paid interest on the compensation calculated from the day the acquisition notice was published in the NSW Government Gazette to the date of payment.
What you can do
- Consider the acquiring authority’s compensation notice.
- If you agree with the compensation notice, complete a Deed of Release and Indemnity and send it to the acquiring authority.
If you don't agree with the compensation notice
If you do not agree with the amount of compensation determined by the Valuer General, you can lodge an objection with the NSW Land and Environment Court.
You must lodge your objection within 90 days of receiving your compensation notice from the acquiring authority.
You must also give the acquiring authority notice that you have begun proceedings in the NSW Land and Environment Court.
What you can do
- Lodge an application with the NSW Land and Environment Court within 90 days of receiving the compensation notice. The Court may accept late applications in some cases.
Download a guide
Our property acquisition guides take you through the acquisition process step by step.
The guides are available in English, Arabic (العربية), Cantonese (廣東話), Mandarin (國語), Greek (Ελληνικά), Hindi (हिन्दी), Italian (Italiano), Korean (한국어), and Vietnamese (Tiếng Việt Nam).
Help and support
Your acquisition support team is there to help you with any questions about the acquisition process you are involved in. Contact your Personal Manager or legal representative with any specific questions about your situation.
For general information about property acquisition in NSW:
- email the Centre for Property Acquisition
- call 1300 029 146
- use the online enquiry form.
Property Acquisition Support Line
The Property Acquisition Support Line provides free and confidential counselling services available 24 hours a day, 7 days a week to support your mental health and wellbeing. Call the Property Acquisition Support Line on 1300 089 551.
Find out more about the Property Acquisition Support Line service.