The Law Reform Commission’s Report on Complusory Acquisition of Land

Introduction

The LRC has recently published its Report on the Compulsory Acquisition of Land. This Report considers what the LRC describes as ‘the second half of the compulsory purchase process’. Rather than focusing on whether a CPO should be permitted, the Report considers how and when the land will be taken and the amount the owner will be compensated for the loss of their land.

The purpose of the recommendations contained in the Report is to replace the existing law with a ‘modern and simple legislative structure’ aimed at reducing delays in the acquisition stage. The LRC seeks to minimise legal and administrative costs of acquiring authorities in achieving acquisition, all the while ensuring that owners have their costs, including the costs of assessing compensation, covered by the acquiring authority.

Existing Law

At present this area is governed by law, parts of which pre-date the foundation of the State. Two particularly significant pieces of legislation are:- the Lands Clauses Consolidation Act 1845 and the Acquisition of Land (Assessment of Compensation) Act 1919. To this day these Acts remain the principal legislative frameworks applicable in Ireland for compulsory acquisition and compensation.

The difficulty here is that these Acts have been subject to many amendments, serving to make the law in this area difficult to untangle and comprehend. On that basis, the LRC recommends entirely repealing the 1919 Act and repealing certain provisions of the 1845 Act.

LRC Recommendations

The recommendations contained in the LRC Report can be broken down under different headings of CPO procedure:-

Vesting Order –

1. The LRC recommends that a new standalone and simplified vesting order procedure replaces the existing notice to treat procedure.
2. The LRC recommends that on the vesting date as specified in the order, the land is transferred to the acquiring authority in fee simple free from incumbrances.
3. The LRC recommends that the vesting order model should include the following requirements:
   • A vesting order shall be made within 12 months from the CPO becoming operative,
   • The vesting date cannot be earlier than 3 months from the service of a copy of the vesting order,
   • The vesting date cannot be later than 6 months from the service of a copy of the vesting order, and
   • The occupier loses possession on the vesting date.

Advance Payment of Compensation –

1. The acquiring authority should be required to make an advance payment to an owner if-
   • A vesting order has been made in respect of the owner’s land or a notice of entry has been served on them, and
   • The acquiring authority is satisfied that the owner holds the claimed title based on the information provided in the particulars of claim.
2. Advance payment should be no less than 90% of the estimated full compensation as determined by the acquiring authority,
3. Any dispute on the amount of an advance payment should not effect the validity of the vesting order,
4. The acquiring authority shall, upon request provided justification for reaching the compensation estimate,
5. The advance payment regime should apply to lands subject to a mortgage.

Failure to Ascertain Title –

1. The acquiring authority should be required to pay money into court where it is satisfied  that a person
   • Who holds title to the land or an interest in land subject to the vesting order who cannot be found or ascertained after reasonable inquiry by the acquiring authority, or
   • Served with a vesting order, who claims to hold title to the land or an interest, who fails to provide evidence to the satisfaction of the acquiring authority of such title.

Determination of Compensation –

1. The LRC recommends that the 1919 Act be repealed in its entirety,
2. The property arbitrator function should be replaced with the Valuation Tribunal to determine compensation for land compulsorily acquired.
3. Legislation should provide that the Tribunal shall order that the reasonable costs and expenses properly incurred by the owner shall be paid by the acquiring authority unless the Tribunal is satisfied that there exists good reasons for not making such an order.
4. The basic principles of value to owner and equivalence, subject to certain well-established modifications, should remain the basis of compensation for compulsory acquisition.

More detail on the recommendations of the LRC and a proposed draft bill can be found in the Report on Compulsory Acquisition of Land - https://www.lawreform.ie/_fileupload/Reports/LRC-127%202023%20-%20Compulsory%20Acquisition%20of%20Land.pdf