Land Expropriation and Compensation

Expropriation compensation: not only checks if compensated, but how much, when and for what exactly

When an authority promotes a path, public institution, infrastructure, or other public purpose, the landowner or the rights holder may find himself facing the expropriation process. Many assume that if an expropriation notice is sent, there is nothing to be done except to wait for the compensation offer. In practice, this is only the beginning of the inspection.

At such stages, not only the expropriation itself must be examined, but also its legal source, the scope of the land taken, the manner in which the compensation was calculated, and the question of whether the remainder of the land left in the hands of the owner was also damaged.

When does a question of compensation arise?

• When an entire lot or part of it is excavated for a road, road, park or public building.
• When a notice is sent of seizure of possession or designation of the land for public use.
• When the expropriation also impairs the possibility to exploit, sell or develop the unencumbered part.
• When the proposed compensation appears low or ignores planning rights and future potential.

What to check at the beginning

• What is the legal basis for the expropriation and whether the authority has acted in the correct course.
• What is the determining date for the valuation and what was the status of the rights at that time.
• Whether the expropriation is full or partial, and whether there is a planning or economic damage to the remaining part.
• Is there a remuneration fee at the same time?Section 197 of the Planning and Building Act.

Not only land taken, but damage to the rest of the land.

In many cases, the dispute is not only about the land that was expropriated, but about the damage to the land left in the hands of the owner: reducing accessibility, damaging future planning, changing the shape of the lot, noise, nuisance or damage to the value of the balance of the plot. Those who are satisfied with just checking the land that was taken may miss a significant part of the possible compensation.

How to act on time

Sometimes the correct action begins at the program stage. If the expropriation is due to a deposited or approved plan, planning objections must also be examined, as explained in the articleHow to file an objection to a building plan or zoning planAnd not just wait for the stage where the Authority will offer compensation.

Common mistakes in eminent domain procedures

• Accept the Authority's position without independent review of the merits and rights.
• Focus only on the area that was expropriated and ignore the damage to the rest of the land.
• Collect documents too late, after a significant deadline has passed.
• Do not combine legal, planning and assessment examination from the first stage.

Proper legal support changes the picture

Expropriation cases should read the plan correctly, understand the status of the rights, examine the compensation offer and check for parallel routes of attainment, negotiations or legal process. When the land is an asset with planning potential, the inspection must be particularly deep.

For the purpose of early mapping of planning and expropriation risks in a project or property, it is also recommended to use the extensive review detailed in the articlePlanning and Construction Law – The Legal Guide for Every Property Owner and Entrepreneur.