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What is Compulsory Acquisition in NSW? A Property Owner’s Guide to Just Terms

  • Writer: Tareela
    Tareela
  • Jun 3
  • 4 min read

If the government wants to acquire your land, what are your rights—and how do you make sure you're properly compensated?



You’ve just received a letter.


It says your land is needed for a road, school, or piece of public infrastructure.


It’s not a request, it’s compulsory.


Hang on a minute! I thought I owned this land? Now what?


For most property owners, compulsory acquisition feels sudden, confusing, and more than a little daunting. But it’s also a tightly governed process—your rights are protected by law, and with the right advice, you can ensure you’re compensated fairly.


At Tareela, we help landowners navigate compulsory acquisition with clarity, confidence, and results.


This guide walks you through what compulsory acquisition is, how the Just Terms Act works, and what you need to know if your land is affected.


What is Compulsory Acquisition?


Compulsory acquisition is when a government authority legally acquires private property for a public purpose—with or without your consent.


It could be for:

  • New roadways or motorways

  • Rail lines or tunnels (e.g. Metro West)

  • Hospitals, schools, or public facilities

  • Utility upgrades (e.g. electricity, water, telecom)


The rules of the process of the Land Acquisition (Just Terms Compensation) Act 1991—commonly referred to as the “Just Terms Act.”


Who Can Acquire Land in NSW?


Technically, any authority of the State that is authorised by law to acquire land by compulsory process in accordance with the Just Terms Act.


To put it simply several public authorities can compulsorily acquire land in NSW, including:


Each must follow a strict process that gives you time to respond and a right to fair compensation.


What is ‘Just Terms’ Compensation?


The Act outlines that the property owner must receive “just terms”—a fair and proper amount—for your land.


But “just” doesn’t just mean market value.


There are six heads of compensation considered under the Act:


  1. Market Value – Based on what your land would sell for on the open market (excluding the acquisition announcement).

  2. Special Value – Value that’s specific to you (e.g. adjoining land ownership).

  3. Loss attributable to Severance – Loss from part of your land being acquired.

  4. Loss attributable to Disturbance – Costs you incur (e.g. relocation, business losses, professional fees).

  5. Disadvantage resulting from Relocation – Loss from non-financial disadvantage to relocate principal place of residence.

  6. Any increase or decrease in the value of adjoining or severed land– A decrease in value of adjoining or severed land (sometimes called injurious affection) may give rise to a claim for compensation, whereas an increase in their value (sometimes called betterment) may give rise to a downward adjustment in the compensation payable.


👉 A professional valuation considers all these factors—not just a quick estimate of market price.


The Compulsory Acquisition Process in NSW


Here’s a simplified breakdown of what typically happens:


1. Early Notification

You might hear of a proposed project before any formal action—especially if it's a rezoning or infrastructure plan.


2. PAN (Proposed Acquisition Notice)

You receive a PAN (Proposed Acquisition Notice) —this is the formal start of the process. From here, the clock starts ticking (minimum 90 days).


3. Engage Experts

This is when you need to to bring in a specialist valuer and solicitor. Their fees are often reimbursed by the acquiring authority.


4. Valuation & Negotiation

Both you and the acquiring authority prepare independent valuations. Negotiations aim to reach fair settlement.


5. Acquisition & Compensation

If agreement isn’t reached, the acquisition can still proceed via gazettal. You’ll be paid what the authority deems fair—but you retain the right to dispute it through the Land and Environment Court.


📌 Time matters — responding early and with the right support often results in higher compensation and less stress.


Your Rights as a Landowner


You may not be able to stop the acquisition, but you do have rights.


✅ Right to your own valuation (and to be reimbursed)

✅ Right to negotiate a higher offer

✅ Right to claim disturbance and relocation costs

✅ Right to object (in limited planning situations)

✅ Right to independent legal and advisory support

✅ Right to dispute the final compensation via court


At Tareela, we work solely for landowners, not government agencies. That means our job is to maximise your position and protect your interests.


Why Early Advice Makes a Difference


Too often, landowners accept an initial offer without knowing what they’re entitled to—or wait too long to get help.


Our experience shows that landowners who engage a valuer early:

  • Achieve higher compensation

  • Claim disturbance and relocation costs more successfully

  • Avoid mistakes in documentation or negotiation

  • Feel more confident and in control



Frequently Asked Questions


Can I stop compulsory acquisition?Usually no—but in some planning stages (e.g. rezonings), objections can be raised. Once the PAN is issued, the focus is on compensation, not prevention.


Do I have to accept the first offer?Absolutely not. You’re entitled to provide your own valuation and negotiate.


Who pays for my valuation or solicitor?In most cases, reasonable professional fees are reimbursed by the acquiring authority.


How long does the process take?From PAN to final acquisition typically takes 3–6 months, but timelines vary.



Need Help? Contact Tareela


If you’ve received a PAN or believe your property may be acquired, don’t wait. Early advice leads to better outcomes.


At Tareela, we provide:

  • Expert compulsory acquisition valuations

  • Strategic property advisory

  • Personalised support from start to finish


📞 Contact us today for a confidential discussion about your rights and your property.

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