What is a Proposed Acquisition Notice (PAN)
A compulsory land acquisition occurs when a government body or acquiring authority requires private land for a public purpose such as infrastructure projects involving new rail lines, utility upgrades including transmission line (electricity) easements and easements required by Sydney Water and road upgrades by Transport for NSW.
The process begins with a period of negotiation between the landowner and the acquiring authority. If you have not reached an agreement on compensation with the acquiring authority following the expiry of the minimum six-month negotiation period, you may be sent a Proposed Acquisition Notice (PAN). A PAN indicates the acquiring authority's intention to commence compulsory acquisition under the Just Terms Act after a certain period, usually 90 days.
Once you receive a PAN, you can lodge a claim for compensation with either the acquiring authority or the Valuer General. You will have at least 60 days from the date you receive the PAN to complete your claim for compensation.
Below is an overview of the compulsory acquisition process.
Understanding the compulsory acquisition process
Stage 1
The Just Terms Act encourages acquisitions by agreement, which means the acquiring authority will provide a minimum six-month negotiation period for both parties to agree on the terms of the acquisition.
The negotiation period provides affected landowners with time to understand the acquisition process, seek legal and valuation services, ask questions and raise concerns.
Stage 2
If an agreement is not reached within six months, the acquiring authority may start the process to compulsorily acquire your property. This process starts when the acquiring authority issues affected landowners with a Proposed Acquisition Notice (PAN).
A PAN is a legal notice advising that the acquiring authority will compulsorily acquire the property under the Just Terms Act after a certain period, usually 90 days.
A section 39 claim for compensation form needs to be submitted to the acquiring authority within 60 days of receiving the PAN.
Stage 3
If an agreement isn’t reached within the 90-day notice period, the acquiring authority will compulsorily acquire the property by publishing an Acquisition Notice in the NSW Government Gazette. The acquiring authority takes ownership of the property from the date the property is published in the NSW Government Gazette.
The Valuer General will then determine how much money the acquiring authority should pay you for the acquisition according to the Just Terms Act.
After the Valuer General determines the compensation, the acquiring authority will send you a Compensation Notice, including an offer of the amount they have determined. You can either accept the offer or lodge an appeal in the Land and Environment Court within 90 days of receiving the compensation notice if you object to the amount offered.
The Court will generally decide that a ‘without prejudice’ conference is held for the landowners and acquiring authority to try and agree on the compensation amount. If an agreement is not reached, the dispute will proceed to a hearing.
FREQUENTLY ASKED QUESTIONS
What is a Proposed Acquisition Notice (PAN)?
A PAN is a legal notice advising that the acquiring authority will compulsorily acquire the property under the Just Terms Act after a certain period, usually 90 days.
When does the acquiring authority issue a PAN?
The acquiring authority will first issue a commencement of acquisition letter, advising that your property is required for a particular project. If an agreement is not reached within the six-month negotiation period following receipt of this letter, the acquiring authority may begin the process to compulsorily acquire your property by issuing affected landowners with a Proposed Acquisition Notice (PAN).
What do I need to do after receiving a PAN?
Contact a solicitor experienced in compulsory land acquisitions without delay, as strict time limits apply.
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