Early acquisition due to hardship

If your property has been zoned or designated for future acquisition, you may apply for early acquisition on the grounds of hardship. You will need to demonstrate that you would suffer hardship if the acquisition of your property is delayed.

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Applying for early acquisition due to hardship

Find out what to expect at each step of the early acquisition due to hardship process, and what you can do to prepare your application.

Demonstrate hardship

Proof of hardship

To demonstrate hardship, you must be able to meet one element from each of the two categories below.

Because your property has been designated for acquisition, you are:
- unable to sell your property, or
- unable to sell your property at the market value.
It’s necessary for you to sell all or any part of your property without delay because of any one of the following reasons:
- a pressing personal reason
- a pressing domestic reason
- a pressing social reason
- to avoid the loss of income
- to avoid substantial reduction in income.

Proof of hardship - for corporations

If the owner is a corporation, then the corporations must be able to meet one element from each of the two categories below to demonstrate hardship.

Because of the designation for acquisition over the property, the corporation is:
- unable to sell the property or
- unable to sell the property at the market value.
It’s necessary for the corporation to sell all or any part of the property without delay because of any one of the following reasons for an individual who holds at least 20% of shares in the corporation:
- a pressing personal reason
- a pressing domestic reason
- a pressing social reason of
- to avoid the loss of income
- to avoid substantial reduction in income.

Complete the application form

Complete the Notice Requiring Acquisting of Land (PDF 879.95KB) (PDF 879.95KB)

Provide supporting information

Provide supporting information from each of the following:

information about the environmental planning instrument that your property is designated under, or a notice in writing from an acquiring authority that your property has been designated for acquisition for a public purpose
proof of title or other information to demonstrate that you own the property or are entitled to exercise a power of sale over the property
proof that you’re unable to sell the property because of the designation
any documentation that supports your claim for a pressing personal, domestic or social reason or to avoid a loss or reduction in income.

Submit your application

Send your completed application to the relevant acquiring authority.

Your application will be assessed

If you can demonstrate hardship according to the criteria, the Notice Requiring Acquisition of Land form is approved by the acquiring authority and your property is acquired. The acquiring authority has 90 days to acquire your property after accepting the hardship application. You can agree to a longer time with the acquiring authority.

Before the 90-day period has expired, the acquiring authority can remove the designation on your property. If this happens, the acquiring authority does not have to acquire your property. The acquiring authority can remove the designation by giving you written notice that your property is no longer designated for future acquisition.

Request a review of your application

You can seek an independent review of your hardship application if:

the acquiring authority rejects your hardship application
the acquiring authority has not responded to your hardship application within 90 days.

You have 28 days after this happens to apply for a review. Please send your application for review to the Department of Planning, Housing and Infrastructure. You will need to include the following documents with your application:

a copy of your Notice Requiring Acquisting of Land (PDF 879.95KB) (PDF 879.95KB) sent to the acquiring authority
a copy of the decision from the acquiring authority, if you have been provided with one
any other information or related correspondence between you and the acquiring authority
any other relevant information you would like to provide.

Where to send your application for review

Please send your application for review via email to the Department of Planning, Housing and Infrastructure. Email: hardship@planning.nsw.gov.au

You will receive confirmation that your application for review has been received.

Frequently asked questions

Who can apply for a hardship acquisition?

Only the owner of the property can apply for hardship acquisition. An owner is someone who:

holds the freehold title to the property or
has become entitled to exercise a power of sale over the property

but is not:

a government entity, or
a public company, or subsidiary of a public company.

A public company is defined in the Corporations Act 2001 (Cth).

Where there is more than one owner, all owners must sign the Notice Requiring Acquisting of Land form (PDF 879.95KB) (PDF 879.95KB). Only one owner needs to demonstrate they are suffering hardship.

How to show you’re unable to sell your property

Evidence to demonstrate you’re unable to sell your property because of the designation may include:

an opinion in writing from a licensed real estate agent to explain why a sales campaign would be inappropriate (for example, because the designation limits potential purchasers or because the designation prevents successful sale as the only realistic purchaser under the circumstances is the acquiring authority)
a receipt or notice from a licensed real estate agent or appropriate website that shows a marketing campaign to sell your property was unable to attract a potential purchaser as a result of the designation.

How to show you are unable to sell your property at market value

Evidence to demonstrate you’re unable to sell your property at market value because of the designation may include:

copies of offers of sale which are less than the market value of the property, and a property valuation report from a registered valuer
if no offers have been made, a notice or letter from a licensed real estate agent or appropriate website that shows this.

What happens when you apply for a review?

An independent reviewer will be appointed by the Department of Planning, Housing and Infrastructure to assess your eligibility for hardship. The independent reviewer may determine that:

You’re eligible for hardship, and so the decision of the acquiring authority is overturned. The acquiring authority must then acquire your property within 90 days.

You’re not eligible for hardship, and so the decision of the acquiring authority is confirmed. The acquiring authority does not need to acquire your property early. The decision of the reviewer is final.

How is compensation assessed?

Compensation under the Land Acquisition (Just Terms Compensation) Act 1991 is required to be on just terms and is guaranteed to not be less than the market value of your property. Depending on your individual circumstances, the following types of compensation may not be paid in the event of a hardship acquisition:

any special value of the property
any loss attributable to severance or disturbance
disadvantage resulting from relocation.

Acquiring authorities must look at your individual circumstances when making a decision on the amount of compensation to be paid.

If the acquiring authority determines that any one of these types of compensation is not to be paid, it must explain to you why it is fair and reasonable in the circumstances.

What is the role of the Valuer General in this process?

If you’re unable to agree on the amount of compensation with the acquiring authority, the matter is referred to the Valuer General, who will issue a determination of the compensation payable.

The Valuer General’s website has more information on the role of the Valuer General.

View the Claim for Compensation form (PDF 438.79KB).