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ARTICLE · 20 JULY 2018

When compensation for land acquisition gets complicated

Holding Redlich
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The executors of an estate in Victoria applied for a declaration that they were eligible to make a 'loss on sale' claim.

AustraliaReal Estate and Construction
Tess Kerridge (formerly at Holding Redlich)
Tess Kerridge (formerly at Holding Redlich)
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When a public acquisition overlay is applied to land, the Planning and Environment Act 1987 gives the owner of the land rights to seek compensation from the acquiring authority where, upon sale of the land, the sale price is lower than expected as a consequence of the existence of the overlay.

In a recent decision, Capela v Minister for Energy, Environment and Climate Change [2018] VSC 360, a public acquisition overlay was introduced, however the owner died before she was able to sell her land and trigger a claim for compensation.

The executors of the estate of Mrs Liptak applied to the Supreme Court for a declaration to the effect that they were eligible to make a 'loss on sale' claim under the Planning and Environment Act 1987 upon sale of the subject land.

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