Market value for your property is one type of compensation, but there are others that may also apply to your situation.
Getting an offer or claiming compensation
Under an acquisition by agreement, your Letter of Offer will contain the compensation details.
Under compulsory acquisition, when a proposed acquisition notice is issued, the property owner and anyone else with an interest in the property has at least 60 days to complete and lodge a Claim for Compensation form (PDF 438.79KB) with the acquiring authority or with the Valuer General.
The market value of your property is usually the largest component of your compensation. There are other types of compensation that you may be eligible to receive, depending on your situation.
Contact your acquisition manager to determine which of them will apply to you.
A lawyer can help you understand your legal rights and reach an agreement with the acquiring authority on the compensation you may be entitled to.
For advice on finding a lawyer, you can contact the NSW Law Society on (02) 9926 0333 or visit lawsociety.com.au.
Market value of your property
Market value is the amount that would have been paid for your property if it had been sold on the open market, if the proposed project or public purpose did not exist.
See how market value of your property is calculated.
Special value applies when a property has a financial value on top of the market value. Speak to your Acquisition Manager for more information.
Compensation for severance only applies if part of your property is being acquired. It generally applies when an acquisition severs part of a property and as a result, the remaining property may incur a reduction to its market value.
Compensation for disturbance may include any or all of the following:
- reasonable legal costs
- reasonable valuation fees
- reasonable relocation costs
- reasonable stamp duty costs in connection with buying a new property for relocation
- reasonable financial costs in connection with the discharge of a mortgage and the execution of a new mortgage
- other reasonable financial costs related to the actual use of the property as a result of the property acquisition.
Property owners and other interest holders should contact their personal manager to discuss what is considered reasonable costs.
Disadvantage resulting from relocation
The maximum amount of compensation an acquiring authority can provide to owners for disadvantage is $85,350 for acquisitions on or after 1 July 2022. This amount is adjusted annually to account for inflation, based on the consumer price index, often referred to as CPI.
Compensation for disadvantage resulting from relocation considers:
- your interest in the property
- the length of time you have lived in the property (and in particular whether you are living in the property temporarily or indefinitely)
- the inconvenience likely to occur
- the period after the acquisition that you have been – or will be – allowed to remain in possession of the property.
An increase or decrease in the value of other property
This compensation only applies when a part of your property is being acquired. It considers any change in the value of other property that adjoins or is severed from the property being acquired.
The compensation will be adjusted if the change in value is caused by the public purpose that the property was acquired, for example, building a road or hospital.