Once the Australian Rail Track Corporation (ARTC) has determined which land is required for the final rail corridor, a representative from ARTC will contact landowners regarding the acquisition of their land. ARTC must negotiate with landowners for a minimum of six months before the compulsory acquisition process can begin.
Landowners are entitled to claim compensation for the market value of their land plus reimbursement for costs reasonably incurred by the landowner such as legal and valuation fees.
What is the process for land resumption in NSW?
If you cannot reach an agreement with the ARTC, the NSW government must follow this process:
- Landowners will be issued with a ‘Proposed Acquisition Notice’.
- Landowners have 60 days from receiving the ‘Proposed Acquisition Notice’ to lodge a claim for compensation form with the Valuer General of NSW (an independent statutory body). It is important to seek legal advice as soon as you receive the ‘Proposed Acquisition Notice’. We can assist you with the drafting of your claim for compensation form.
- Landowners can continue to negotiate with ARTC regarding compensation and if an agreement is reached within 90 days of the ‘Proposed Acquisition Notice’ being issued, then the agreement will be documented, you will be paid compensation and the property will be transferred to the NSW government.
- If an agreement isn’t reached with ARTC within 90 days of the ‘Proposed Acquisition Notice’ being issued, ARTC will publish an ‘Acquisition Notice’ in the NSW Government Gazette, which means:
(a) Ownership of the land is transferred to the NSW Government.
(b) The Valuer General appoints an independent valuer to determine the amount of compensation.
(c) The landowner can stay in the property for up to 3 months rent free unless the property is required sooner.
- The Valuer General will firstly issue a ‘Preliminary Valuation Report’ outlining the proposed compensation amount and how it was determined. Landowners have 15 business days to give feedback on the report.
- Within 45 days of the ‘Acquisition Notice’ being published, the Valuer General will issue a ‘Compensation Notice’ showing the final compensation amount.
- If you agree with the compensation amount, you will be paid within 28 days of signing a deed and release. You will also be paid interest which is calculated from the date the ‘Acquisition Notice’ was published in the NSW Government Gazette.
- If you don’t agree with the compensation amount, you have 90 days from receiving the ‘Compensation Notice’ to lodge an objection with the NSW Land & Environment Court. The Court will hear the objection then determine the compensation amount.
Please contact a member of our Property team at Fox and Thomas if you believe your property may be within the proposed rail corridor for advice on how you may be impacted.