Early acquisition due to hardship
If your land has been selected for future acquisition, you can apply for early acquisition on the grounds of hardship. You will need to show that you would suffer hardship if the acquisition of your land is delayed.
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.
Proof of hardship - residential
To show hardship, you must be able to meet one element from each of the two categories below.
- Because your land has been designated for acquisition, you’re:
- unable to sell your land, or
- unable to sell your land at the market value.
- It’s necessary for you to sell all or any part of your land 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 - corporation
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 land, the corporation is:
- unable to sell the land or
- unable to sell the land at the market value.
- It’s necessary for the corporation to sell all or any part of the land 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 Notice Requiring Acquisition of Land form (PDF 879.95KB).
Provide supporting information from each of the following:
- information about the environmental planning instrument that your land is designated under, or a notice in writing from an acquiring authority that your land has been designated for acquisition for a public purpose
- proof of title or other information to demonstrate that you own the land or are entitled to exercise a power of sale over the land
- proof that you’re unable to sell the land 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.
Send your completed application to the relevant acquiring authority.
If you can demonstrate hardship, the Notice Requiring Acquisition of Land form is approved by the acquiring authority and your land is acquired. The acquiring authority has 90 days to acquire your land 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 land. If this happens, the acquiring authority does not have to acquire your land. The acquiring authority can remove the designation by giving you written notice that your land is no longer designated for future acquisition.
You can seek an independent review of your hardship application if:
- the acquiring authority rejects your application for hardship
- the acquiring authority has not responded to your application for hardship within 90 days.
You have 28 days after this happens to apply for a review. Please send your application to the Department of Planning, Industry and Environment. You’ll need to include the following documents with your application:
- a copy of your Notice Requiring Acquisition of Land form (PDF 879.95KB) sent to the acquiring authority
- a copy of the decision from the acquiring authority
- any other information or related correspondence between you and the acquiring authority
- any other relevant information you’d like to provide.
Where to send your application for review
Please send your application for review via email to the Department of Planning, Industry and Environment. 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 land can apply for hardship acquisition. An owner is someone who:
- owns the freehold title to the land or
- has become entitled to exercise a power of sale over the land
but is not:
- a public company, or subsidiary of a public company, including if the public company is a charity.
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 Acquisition of Land form (PDF 879.95KB). Only one owner needs to demonstrate they are suffering hardship.
How to show you’re unable to sell your land
Evidence to demonstrate you’re unable to sell your land 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 land was unable to attract a potential purchaser as a result of the designation.
How to show you’re unable to sell your land at market value
Evidence to demonstrate you’re unable to sell your land 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, Industry and Environment 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 land within 90 days.
Or
- 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 land 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 will include payment of 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 land
- 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.
Any offer of compensation must specify the amounts being awarded for each type of compensation.
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 Valuer General will determine the compensation payable.
The Valuer General’s website has more information on the role of the Valuer General.
More information
You can download a fact sheet version of this information and the corresponding minimum requirements document from the links below:
Owner-initiated acquisition in cases of hardship: fact sheet (PDF 138.01KB)
Minimum requirements: Owner-initiated acquisition in cases of hardship (PDF 877.9KB)
Contact us
If you have any questions about the information you see here, please contact the Centre for Property Acquisition.
Phone: 1300 029 146