Frequently asked questions (acquisition process)

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Home > Property and land management > Frequently asked questions (acquisition process)

How can I find out if the property is reserved?

For the Department to search the property details via LandGate on their computer, you will need to provide the lot number, street name and suburb. If you have the certificate of title number then this will assist in identifying the property more accurately.    http://www.landgate.com.au/

If you require details of dimensions of the reservation, contact the Department’s Mapping and Geospatial Data.

Alternatively, you may suggest to the client to apply for a Clause 42 Certificate (for the MRS) or a Clause 47 (for the PRS).  Please refer to the WAPC website for further information.  These are statutory certificates issued by the Western Australian Planning Commission that state the zoning/reservation of a property.

Metropolitan Region Scheme certificate system

Peel Region Scheme certificate system

There is a caveat on the Certificate of title stating that compensation has been paid.  What does this mean?

If there is a caveat on Certificate of Title by either the Metropolitan Region Planning Authority, State Planning Commission or Western Australian Planning Commission stating that compensation has been paid, it means that at some time in the past a former owner of the property (the owner when the property was first reserved) sold the property on the open market at a reduced price and then claimed compensation under the provisions of section 180 of the Planning and Development Act 2005 (formerly s36 of the Metropolitan Region Town Planning Scheme Act or S35 of the Western Australian Planning Commission Act) for the difference between the sale price and the full market value of the property as unaffected by the reservation. 

The compensation paid represents a percentage of the unaffected value of the whole of the property.  When the WAPC ultimately acquires the reserved/whole of the property, then the percentage compensation previously paid is taken into account.

For example, if compensation of $25,000 was paid to the original landowner and the unaffected value of the property at that time was $100,000 then the amount of compensation represents 25% of the unaffected value of the property.  If the current market value of the property is $200,000, then the percentage of compensation previously paid would be $50,000 and the purchase price payable at settlement would be $150,000.

In general, when the property changes hands between private landowners the purchase price for the property should take into account the percentage of compensation previously paid.

When a property is reserved in the Metropolitan Region Scheme or any other regional scheme, when will the Commission acquire the land?

Once a property has been reserved it does not mean that it will be acquired immediately.  In most cases, the acquisition of reserved land is carried out over a number of years in line with project timetables and the availability of funds.

Subject to acquisition priorities and the availability of funds, the Commission would be willing to consider the early purchase of a reserved property if approached by an affected landowner. Similarly, the Commission would consider requests from landowners experiencing financial or personal hardship or who have been unable to achieve the sale of a reserved property on the open market.

All purchases are carried out by negotiation and the offer to purchase and negotiating range (if any) is based on the property’s current market value had it not been reserved.  Independent licensed valuers from the private sector carry out the valuations.                

“Resumption” and “taking” refers to the process of compulsory acquisition of land for public works in accordance with the procedures for the taking of land under the Land Administration Act 1997 (as at 1 January 2003)

Properties are only taken where the property is required for a priority public work and the Commission has been unable to acquire the property earlier by negotiation or the owner is unwilling to sell the property to the Commission.

The taking of land is a last resort and is only considered by the Commission when land is required for priority public works and all other avenues of negotiation have been exhausted.

Reserved land means land that is set aside for a specific purpose and illustrated on a series of maps in the Metropolitan Region Scheme. The purposes can be for parks and recreation, primary regional roads, other regional roads, railways, waterways, conservation areas etc.

Land taken – when a property is taken, the ownership of the property is transferred to the Commission (or the acquiring authority) and owner’s freehold interest in the property reverts to a claim for compensation against the Commission (or the acquiring authority).  The Land Administration Act 1997 provides for what may be claimed following the taking of land and the means of dealing with the claim for compensation.  For further information see the information sheet “Procedures for Compensation for Interest Taken”.

Am I entitled to compensation?

If your land is reserved in the MRS, you may be able to make a Claim for Compensation for Injurious Affection if:

• You are the owner of the property when it is first reserved in Region Planning Scheme and you wish to sell the property on the open market at a reduced price; or
• The WAPC has either refused a development application over the property or has approved a development application over the property subject to conditions that are unacceptable to the applicant.

Compensation if land is reserved in whole or part is triggered either upon the first sale or refusal of a development application after the land is reserved. If the owner should pass away and the land is transferred to the beneficiaries of a will does this remove the statutory right to compensation as a “first sale”.

No, transfer to the beneficiaries under a will is not considered a sale (for consideration) and the beneficiaries therefore preserve compensation rights.

Note: Even if the statutory compensation rights lapse that does not mean that an affected landowner loses the right to be compensated for their land, it simply requires the landowner to approach the WAPC at the time of the owners choosing with a request that the WAPC purchase the land. The landowner knows that they have a guaranteed buyer. The purchase price continues to be fair market value (disregarding the purpose of the reservation) irrespective of whether it is a claim for compensation or a negotiated purchase.

How do I claim compensation?

If you have chosen to sell the property on the open market at a reduced price, complete a “Notice of Intention to Sell” form which is available at the department.  The department will establish the extent of the reservation and forward the Notice to the Board of Valuers.

The Board of Valuers will determine the sworn unaffected value of the property.  You may wish to meet with the Board to raise any matters you believe are relevant to the value of the property.

Following the determination by the Board:

• You will be notified of the unaffected value of the property.

• You pay a valuation fee to the WAPC, after which you will be notified of the affected value of the property - this will represent the minium sale price.

• You then arrange the sale of the property (either privately or through an agent).  Note the sale price must not be less than the affected value.

• When the property is sold, you may make a Claim for Compensation for Injurious Affection for the difference between the sale price and the unaffected value as determined by the board.

• If the property does not sell within one year of the board’s valuation, you may ask the board for a revaluation of the property.  The sale process is then repeated.

• Once compensation has been paid, a caveat will be lodged on the Certificate of Title to identify that compensation has been paid.  Please note that compensation is only payable once.

Alternatively, you may ask the WAPC to purchase the property, as you have been unable to sell the property privately.

If the WAPC has refused your development application or approved it subject to unacceptable conditions and the property is reserved in the Region Planning Scheme, you may make a Claim for Compensation for Injurious Affection within six months of the WAPC’s decision on the application.  In such a case the WAPC will either pay compensation or may elect to purchase the property in lieu of paying compensation.

If the WAPC elects to purchase the property, valuations are obtained for the market value of the property as at the date of the election to purchase had the property not been reserved in the region planning scheme. Please note that the date of valuation is fixed at the date of election to purchase.