Market value is one head of claim, not the whole claim.
When a government or statutory authority acquires land compulsorily, the owner is entitled to compensation. Market value of the land taken is the starting point, not the total — depending on the jurisdiction and the circumstances a claim may also include severance (the reduction in value of the land you keep), injurious affection (the effect of the works on what remains), disturbance and relocation costs, and reasonable legal and valuation costs. The entitlements and their names differ by jurisdiction. The first offer rarely reflects all of them.
The authority’s valuer works for the authority.
An acquiring authority obtains its own valuation and offers on the basis of it. That valuer is usually competent and acting properly — but they are instructed by the authority, they value what the authority asks them to value, and they are not retained to find every head of compensation available to you.
The gap is rarely in the market value of the land actually taken, where two competent valuers analysing the same evidence tend to converge. It is in everything else: what happens to the value of the remainder when a strip comes off the frontage, when access changes, when a shape becomes unworkable, when the works themselves affect amenity. Those are the heads most often understated or omitted.
Taking independent advice is not adversarial. In most Australian jurisdictions the reasonable cost of obtaining valuation and legal advice on a compensation claim is itself compensable — confirm the position for your matter, because it materially changes the decision about whether to take advice at all.
What a full assessment looks at.
Market value of the land taken, at the date the relevant statute fixes — usually the date the acquisition takes effect, not the date of the offer or of your enquiry.
Severance. Where part of a holding is taken, the land you retain may be worth less per unit than it was as part of the whole — a smaller lot, a truncated shape, a lost building envelope, a setback that no longer works.
Injurious affection. The effect of the public work itself on the remaining land: noise, loss of outlook, altered access, drainage, proximity to a structure that was not there before.
Disturbance and relocation. The actual costs of being displaced — removal, reconnection, alterations to the remainder, professional fees. Some jurisdictions also provide a distinct allowance recognising the intangible disadvantage of losing a principal residence; whether one applies, and on what terms, is jurisdiction-specific.
Costs. Reasonable legal and valuation costs of preparing and negotiating the claim are commonly recoverable. We will tell you what we understand the position to be and recommend you confirm it with your solicitor.
Instructing on an acquisition matterThree steps, in this order.
One: do not sign anything yet. An offer usually arrives with a deadline that feels shorter than it is. Establish the actual statutory timeframes in your jurisdiction before responding — they are frequently more generous than the covering letter implies.
Two: get the documents together. The notice of intention or acquisition, the plan showing exactly what is being taken, the authority’s valuation if provided, your title and any survey, and anything showing how you currently use the whole holding.
Three: get advice on the whole claim, not just the land. Send us the plan and the notice. We will tell you whether the offer looks defensible on market value alone, and whether there are heads of claim in your situation the offer has not addressed.
Four questions, answered plainly.
Can I refuse a compulsory acquisition?
Generally no — that is what compulsory means. Where a statutory authority has the power to acquire and follows the process, the acquisition proceeds. What is negotiable is the compensation, and sometimes the extent and timing of what is taken. The practical question is almost never whether the land goes, but whether you are paid properly for it.
Is the authority’s offer usually fair?
Often it is reasonably close on the market value of the land actually taken. The gap is more commonly in the other heads of claim — severance, injurious affection to the remainder, and disturbance costs. Those require someone to be looking for them on your behalf, because the authority’s valuer is not instructed to.
Who pays for my valuer?
In most Australian jurisdictions the reasonable costs of obtaining valuation and legal advice in connection with a compensation claim are themselves compensable, on terms that vary and are usually subject to a reasonableness test. That materially changes the calculation. Confirm the position for your matter with your solicitor; we will quote a fixed fee in writing either way.
What date is the valuation done at?
The date is fixed by the statute under which the acquisition is made, and is usually the date the acquisition takes effect rather than the date of the offer or of your enquiry. Where the market has moved between those dates the difference can be significant, and using the wrong date is a straightforward way to understate a claim.
Where this connects to the rest of the file.
Acquisition and compensation matters
Instruction, timeframes and expert evidence on compensation claims.
Site value and statutory valuations
The related discipline of analysing land value against a statutory assessment.
Bases of value, with sources
What a report must contain to be relied on by a court or tribunal.
What sets the fee
Partial acquisitions and severance analysis are a materially larger scope than a whole-of-lot valuation.