Resumptions & Compensations



    • Resumptions and compensation is a specialist area within the valuation industry;
    • Resumptions mainly arise from Local, State or Federal Government infrastructure projects or schemes, such as roads, rail, tunnels, bridges or parks;
    • It could be said that the majority of resumptions arise from road widening particularly on existing arterial roads;
    • Generally there are two types of resumptions, being a full take or a part take. The full take is where the resuming authority is purchasing the whole of the land for the project. A part take is that only a portion of the property is required;
    • The assessment for a full take is then done on normal valuation methodologies and a market valuation assessment is made;
    • The part take assessment is inherently more difficult as the majority of the property and improvements remain, but part of the front, rear or side is to become road;
    • In these cases the property is assessed in the ‘Before and After’ scenarios. The Before again ignores any component of the scheme and an assessment is made on an as is where is basis at the relevant date;
    • In the After assessment the Valuer is to assess the negative and or positive impacts of that scheme and how that will affect the Before market value. The difference between the two valuation assessments is the compensation.

Here’s a simple example:

Valuation Methodology Assessed Value
Before Valuation $1,000,000
After Valuation $ 800,000
Compensation $ 200,000
  • In both a full and part take situation and in addition to the compensation figure, the resuming/purchasing authority generally pays you, as property owner, your incurred legal and valuation fees; interest on the agreed amount from the date of resumption; stamp duty on the purchase of your next property to reflect the agreed value of the full take.
  • Various Australian States have their own legislation and therefore the fees in addition to the agreed compensation sum may vary;
  • Also it is worth noting that there is a Land Court structure in all states where these matters are heard when settlement between the parties cannot be met. (In our experience and knowing the costs involved to go to Court, we strongly suggest that this should be the last resort).