Hardship applications for land reserved for acquisition in NSW
Hardship Applications
If your property has been zoned or designated for compulsory acquisition in the future, you may be able to apply for an early acquisition due to hardship. To do this, you must show that you would suffer hardship if the acquisition of your property were delayed.
Applying for early acquisition due to hardship
Step 1: Proof of hardship
To demonstrate hardship, you must meet one requirement 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 its market value.
- It is 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 loss of income
- to avoid a substantial reduction in income.
Proof of hardship – corporations
If the owner of the land is a corporation, the corporation does not suffer hardship unless it has become necessary for the corporation to sell all or any part of the land without delay:
- for pressing personal, domestic or social reasons of an individual who holds at least 20 per cent of the shares in the corporation, or
- in order to avoid the loss of (or a substantial reduction in) the income of such an individual.
Step 2: Provide information to support your hardship application
Include supporting information for each of the following:
- Details of the environmental planning instrument your property is designated under, or a written notice from the acquiring authority stating that your property has been designated for acquisition for a public purpose;
- Proof of title, or other information showing that you own the property or are entitled to exercise a power of sale over the property;
- Proof that you are unable to sell the property because of the designation;
- Any documents that support your pressing personal, domestic or social reason, or your need to avoid a loss or reduction in income.
Step 3: Your application will be assessed
If you can demonstrate hardship under the criteria, you may require the acquiring authority to acquire your property. The acquiring authority has 90 days to acquire your property from the date you give it your notice. You can agree in writing with the acquiring authority to a longer period (if required).
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. To do this, the acquiring authority must notify you in writing that your property will no longer be designated for future acquisition.
Need help with your hardship application?
Contact Rely Legal for a free, no obligation initial consultation. We can discuss your hardship application and help you determine whether your property qualifies.
FREQUENTLY ASKED QUESTIONS
Who can apply for a hardship acquisition?
Only the owner of the property can apply for a 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.
An owner does not include:
- a government entity; or
- a public company, or a subsidiary of a public company.
How do I prove in a hardship application that I cannot sell my property?
Evidence that you are unable to sell your property because of the designation for acquisition may include:
- a written opinion from a licensed real estate agent explaining why a sales campaign would not be appropriate. For example, the designation limits potential purchasers or the only realistic purchaser under the circumstances is the acquiring authority;
- a receipt or notice from a licensed real estate agent or appropriate website, showing that a marketing campaign to sell your property did not attract any potential buyers as a result of the designation for compulsory acquisition.
How do I prove in a hardship application that I cannot sell my property at market value?
Evidence that you are unable to sell your property at market value because of the designation may include:
- copies of offers you have received that are below the market value of the property, together with a valuation report from a registered valuer;
- if no offers have been made, a notice or letter from a licensed real estate agent or a suitable website confirming this.
What happens if I ask for a review of a hardship application decision?
Your application is referred to an independent reviewer to assess your eligibility for hardship. The independent reviewer may determine that:
- you are eligible for hardship, and the acquiring authority’s decision is overturned, and the acquiring authority must give effect to the reviewer’s decision; or
- you are not eligible, and the acquiring authority’s decision is confirmed. The acquiring authority does not need to acquire your property early.
The reviewer’s decision is final.
How is compensation assessed in a hardship acquisition?
Compensation under the Land Acquisition (Just Terms Compensation) Act 1991 must be on just terms and must not be less than the market value of your property.
What is the role of the Valuer General in a hardship acquisition?
If you and the acquiring authority cannot agree on the amount of compensation, the matter is referred to the Valuer General, who will issue a determination of the compensation payable.
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