Compulsory Purchase Orders: What you can do

If a Compulsory Purchase Order (CPO) is placed on your property, you may end up having to sell. However, this doesn’t necessarily have to be a bad thing, as wise negotiation and strong legal backing can result in you benefiting from the situation. 

Let’s take a look at what CPOs are, the reasons why they are used, and what you can do about them.

For expert advice tailored to you, contact your local Ellis & Co branch today.

What is a Compulsory Purchase Order?

Issued by authorities looking to develop new projects, a Compulsory Purchase Order effectively forces a homeowner to sell property for the ‘greater good of the community’. CPOs are governed by specific regulations which require the authority in question to contact the property owner to discuss the process and open negotiations.

For what reasons can a CPO be requested?

There are countless reasons why authorities may see that it’s necessary to obtain a CPO, such as new roads, shopping centres, or housing. The relevant authority must be able to prove that whatever they build on the acquired land benefits the following:

  • The economic well-being of the area
  • The environmental well-being of the area
  • The social well-being of the area

If these criteria are met, the development will be considered to be for the ‘greater good of the community’.

Can I object to a CPO?

As a homeowner, you do have the right to object to a CPO. You must submit any objections in writing to the relevant government minister, and the authority attempting to acquire your property must provide you with their contact information and the timeframe you can object within.

How much does the authority have to pay me?

The authority must pay your property’s current market value if they wish to obtain it, regardless of how much you paid for it. Once you have reached an agreement, you should be covered for the cost of hiring a specialised chartered surveyor to assess the value, negotiate, and assist you throughout the process.

You will also be covered for the cost of hiring a solicitor who will handle the transfer of ownership to the buyer. Additionally, you will receive compensation for any inconveniences caused, including losses associated with your current home.

Related: Why it’s important to get your home valued every year

What can I do if my home is affected by a CPO?

Negotiate

In most cases, the authority will make an effort to buy the property through negotiation rather than immediately resorting to a CPO. These orders are usually seen as a last resort, while a sale that is agreed upon by both parties is often more efficient and less likely to cause conflict.

Entering into negotiations with the public body is not mandatory, but it is highly recommended. It is important to respond to their correspondence with important information like the specifics of your land ownership and the names of any other interested individuals or groups.

Obtain the best professional advice

It is advisable to seek guidance from a solicitor who specialises in compulsory purchase proceedings, as they will have the expertise to guide you through the legal aspects of the process and safeguard your rights.

It is equally important to find a chartered surveyor with valuation expertise who can offer key guidance and assistance in determining the appropriate compensation amount.

Be open to relocation

As daunting as CPOs may seem, there are ways you can benefit from the situation. As relocation costs should be covered as part of your compensation, you could end up moving to a better property, where you will be happier. 

You should be able to take advantage of the situation you find yourself in as long as you receive sound legal advice and guidance and negotiate wisely.

Contact your local Ellis & Co branch today for more expert advice and guidance.

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