Property Resumptions: Common Mistakes That Can Affect Your Compensation

When the government or your local council needs land for projects like new roads, schools, or other public works, property resumptions, also known as compulsory acquisitions, take place and people find that they have to surrender their property in return for compensation.

But what if they want your property? When this is the case, everything may begin to feel overwhelming.

A Notice of Intention to Resume (NIR) is typically your first way of finding out your property is on land that is needed for development. This is the official notification that all or a portion of your property may be required. The resumption is usually non-negotiable, but you can take steps to ensure you’re paid properly and not disrupted too badly.

From here, you will go through compensation assessments, negotiations and appraisals, all of which have deadlines and guidelines that you need to comply with. If you miss even one step, you could miss out on fair compensation.

If your property is earmarked for resumption, it's essential to seek the right advice as soon as possible. In the meantime, here are some common errors people make when they are in this situation.

Common mistakes that can reduce your compensation

Even small mistakes during a property resumption can have serious financial consequences.

Below are some of the most common missteps property owners make and how to avoid them:

• Not seeking legal advice early

  Waiting too long before speaking with a property resumption lawyer or failing to do so at all can reduce your ability to negotiate effectively. Professional advice allows you to prepare documentation, understand your rights and respond strategically from the start.

• Relying solely on the acquiring authority’s valuation

  The authority’s (aka the Government's) valuation may not reflect the actual market value of your property or account for all associated losses. Property owners are entitled to obtain an independent valuation, which often identifies a higher, fairer compensation amount.

• Missing key deadlines

  Each stage of the resumption process comes with strict time limits. Failing to respond to notices or provide information on time can delay proceedings or reduce your entitlements.

• Failing to identify and document all losses

  Many owners underestimate the range of compensable items. You’ll need accurate records of everything, from relocation costs and business disruption to professional fees and other related expenses. A detailed record ensures every loss is claimed.

Each of these mistakes is entirely avoidable with the proper support of an experienced legal professional.