QLD section 37 acquisition of land act QLD

Discussion in 'Property Management' started by tomg, 3rd Jan, 2020.

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  1. tomg

    tomg New Member

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    3rd Jan, 2020
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    Hi all,


    I have an IP in inner north Brisbane (Red Hill). The BCC council offered to buy the property as they require the use of the front yard to undertake some drainage work which is expected to take 12 to 18 months. The offer was at market value however I declined it as I am anticipating/hoping for future capital growth.


    Now the council wants to acquire the property for the duration of the works under section 37 acquisition of land act QLD. They will be providing compensation as I will not be able to rent out the property (currently have tenants until June 2020).


    The concern I have with this agreement is that if the property is not tenanted then my insurance will become void. As such there is potential of a break-in and vandalism. What can I do to protect the property from this?

    Can I ask that the BCC provide compensation that is substantially higher than market rent? How likely is it that they will agree? Can I refuse to give them access and keep current tenants if they don’t agree or does the acquisition of land act over-ride this? If I go back to the council and ask for a much higher sell price how likely is it that this will be accepted? Can anyone recommend someone to advise on this issue?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Two professionals that you'll need to involve: a Certified Practicing Valuer CPV and a property lawyer like @RPI.

    I'm not familiar with the Qld Act however if they ate acquiring off-market then all is negotiable, if they're acquiring an interest or portion of the land using the powers under the Act, then there may be other points of consideration for compensation which your legal and val team can prepare.

    What is unclear is are they taking the entire lot? Do they require an easement. Are they taking & subdividing the section of land required? Or leasing the land?
     
    Dan Wood likes this.
  3. tomg

    tomg New Member

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    3rd Jan, 2020
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    Location:
    Melbourne
    Thanks Scott. I think contacting a property lawyer is the thing to do.

    They want to "rent" the whole lot but only for the duration of the drainage works (the drain is not on the property). Similar to the BBC becoming a tenant but using the powers of Section 37. They will not become owners of the property at all (Unless they offer a price we both agree on which is probably unlikely). Essentially, they just need to use the front yard as a base to complete the drainage works. After the drainage works are completed I can resume renting the property to residential tenants.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Location:
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    If they ate renting the property, then the property will not be empty voiding the insurance. You might consider a commercial lease rather than a residential lease and have council cover the Insurance, all service charges (suspension of waste, water/sewer> etc.
     

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