Frequently Asked Questions on Compulsory Purchase Orders

What is a Compulsory Purchase Order (CPO)?

A CPO is a legal order which allows certain statutory bodies, such as local authorities, which need to acquire land or property for large projects (e.g. road widening or Luas schemes) to do so without the consent of the owner where a compelling case in the public interest can be demonstrated.

Compulsory purchase powers enable a local authority to acquire land, property, and other interests compulsorily to carry out their public function.

What is the Purpose of a Compulsory Purchase and owner Compensation?

The compulsory acquisition of land takes place in Ireland to allow a public infrastructure project, perhaps to support new housing, to go ahead for the common good. The principle of compulsory purchase compensation is to seek to place the affected party, in so far as money can, in no better or worse position than they were prior to the compulsory purchase.

What are the Steps of a CPO Process?

 A statutory body decides to make a CPO.

• Affected parties will be served with a notice stating that the Order is about to be put on public display and submitted to An Coimisiun Pleanála for confirmation.

• Newspaper notices will be published.

• Objections/submissions can be made to An Coimisium Pleanála, and this may result in an Oral Hearing at which affected parties can formally put their views forward.

• An Coimisium Pleanála either confirms, amends or rejects CPO order and publishes details of the decisions in this regard.

• After expiry of objection period, the CPO is operative.

• Local Authority serves Notice to Treat on the affected parties and discussions commence regarding the level of compensation available.

• The affected party lodges a claim for compensation. This can be made by the claimants’ valuer.

• On reaching agreement, compensation is paid, otherwise the matter may be referred by either party to the Property Arbitrator to assess compensation.

• Acquisition is finalised, compensation paid.

How do I know when a CPO application has been made affecting my property?

If your property or portion of it is to be the subject of a CPO, you will receive a letter notifying you that an application has been made and of the timeframe available to you to make submissions (representations) to the relevant planning authority.

Can I object to the making of a CPO?

You certainly can. Once a CPO application is made to the relevant planning authority there is a statutory consultation process during which time submissions and objections to the CPO can be made to the local authority. In most instances for large infrastructure projects, the decision-making authority is An Coimisium Pleanála.

What is a Notice to Treat?

The Notice to Treat is a formal request served by the local authority to agree a price for the portion of land or property identified for CPO. It states that the acquiring authority is willing to treat or make an offer to purchase the owner, lessee and occupiers' interest in the land and invites affected parties to submit details of their claim. The Notice to Treat is not considered a binding contract and does not in itself have the effect of passing any interest or estate in land to the acquiring authority. The transfer of legal interest(s) in lands occurs at a later stage when your solicitor completes the title transfer to the local authority.

The original Notice to Treat must be served on the named person. A copy can be sent to a representative where requested.

What is a Notice of Entry?

A Notice of Entry is a formal legal notice which is served by the local authority either at the same time or following the service of a Notice to Treat and gives the acquiring authority power to enter on and take possession of the relevant lands to be acquired. This may occur before compensation is agreed and before money has been paid. The affected party/interest is given a minimum of 14 days’ prior notice and typically access is arranged between your solicitor and the other parties by agreement.

How can I prepare a Compensation Claim?

Upon receipt of a Notice to Treat, a claimant’s legal duty to engage starts. The claimant may wish to obtain independent professional advice and representation in preparing and negotiating a claim for compensation. The cost of such services is part of a normal claim for compensation and is typically made up as follows:

1. Solicitor’s costs for conveyancing and advice on the CPO process.

2. Valuer’s / Agronomists fees to cover negotiations on compensation.

3. Other professional fees associated with the CPO.

Who can I contact to Prepare my Claim?

There are several professional representative bodies where some of their members practice in the area of compulsory purchase and compensation. These include the Society of Chartered Surveyors Ireland (SCSI); Institute of Professional Auctioneers & Valuers (IPAV); Royal Institution of Chartered Surveyors (RICS); Agricultural; Consultants Association (ACA); and the Law Society.

How is the Compensation Assessed?

Where the entitlement to statutory compensation exists, each case is assessed on its own merits. The usual rule is that you are compensated for the value of the lands taken by the local authority along with any loss of value in the lands retained caused by the CPO.

How do Negotiations Happen?

When the compensation claim has been submitted, it is normal for negotiations to take place between the valuers appointed to act on behalf of the local authority and the owners’ valuer. During those Negotiations, an agreement on compensation can be reached with an extensive list of accommodation works i.e. fencing, walls, water supply, drainage, relocation of septic tank, double glazing etc. Sometimes a monetary contribution can be agreed in lieu of the provision of those works items. Otherwise, the accommodation works will generally be completed prior to or during the main construction contract.

Yes, but what if Compensation Is not Agreed?

Where it is not possible for the claimant and the local authority to reach agreement on the compensation payable, the law provides for an independent arbitration process whereby an arbitrator, after hearing the evidence from the respective parties determines the amount payable. The decision of an arbitrator is binding on both parties. Either the owner or the local authority can apply for the appointment of a property arbitrator.

When do I receive my Compensation?

Once the negotiations process is complete and a proposed settlement is reached between the parties, or following an Award from the property arbitrator, the matter is referred to each side’s respective legal representatives to undertake the conveyancing (transfer of ownership) process and then the compensation is paid. It is important that your solicitor ensures that your legal title documentation is in order as only good and marketable title is acceptable to the local authority. Difficulties in payment of compensation may arise if clear title or ownership details cannot be confirmed by your solicitor.

The CPO process can be long and somewhat complex. It is in your own interests to engage with your solicitor and valuer at the earliest possible stage to ensure the best outcome for you as an owner.