Case Study: Bald Hills

What happened next came as a complete shock

Imagine Marianne’s shock to receive a letter from the Department of Transport advising her that her Bald Hills property was earmarked for future development and expansion of a railway line.

The Departmental letter advised that her property was going to be resumed in the future, and that she was being given the option of selling the property to the Department early.

Receiving this Resumption Notice caused Marianne a lot of stress.  As a new property investor, she had very little experience in property legal issues, and had certainly never dealt with or understood what was involved with the whole property resumption process.

Should she trust the government process?

The Department told Marianne that she should get advice from a valuer and a lawyer to make sure that she was happy with the outcome that she was offered.

The key for Marianne was that the Department told her (quite rightly) that they had to pay her “reasonable” legal and valuation costs, so it was in her best interests to get legal advice. Marianne already knew the value of her property, and that being a government employee herself, she thought that the Department’s Valuer would be fair, and that she would get what she was due by following the process.

Right through the negotiation process, Marianne hadn’t mentioned any of what was happening with her property to anyone.  Before the negotiations with the Department concluded, she ended up telling her father, and he was very concerned that she hadn’t sought independent advice.

Dad’s sound advice

Marianne decided to heed her father’s suggestions, and found a Valuer who had extensive experience in resumptions. She did tell the Valuer that she was happy with the price offered and that she didn’t really think she needed his help. The Valuer listened to what she had to say and asked for a few days to do his own research.

In the meantime, the Valuer suggested that Marianne engage NPR Law to ensure that she was properly represented, and had a local property lawyer who knew what they were doing to handle this important transaction.

At NPR Law we charge what the government determines as “reasonable fees”, so Marianne jumped at the chance for us to represent her and look after her best interests.

What we discovered through thorough research

As it turned out, Marianne’s investment property had some features that distinguished it from the comparable sales that the Department’s Valuer had used to establish the value of the property.

Thorough research is important, because every property has unique features, some of which can enhance its’ value and set it apart from others. In his searches the Valuer found a recent sale that justified a 12% increase in the price that Marianne should receive for her property.

The happy outcome for Marianne

Marianne’s Valuer and the Department’s Valuer met to discuss this recent sale. When shown all the details of that sale, the Government Valuer immediately increased the amount that he recommended to the Department and Marianne was able to settle for 12% higher than originally offered.

This resulted in Marianne receiving an increased price, and payment for the disturbance items, based on the higher value, along with recompense for her legal and independent valuation costs. Marianne was thrilled with the result and used the settlement that she had received to buy a similar investment property, and continue to pursue her financial future.

The key learning – independent research can pay off

Just like every human is unique, so is every property, and the value of every property is open for debate. By engaging with an independent Valuer and a local resumption lawyer who has extensive experience in dealing with property law, you are represented by professionals who know what to look for, how to present the information, and how to look after your best interests.