Question: Government has approached me and wishes to acquire a strip of land from the front of my house for a proposed highway improvement scheme. What should I do and what am I entitled to?

Answer: This is a fairly common situation since Government is constantly carrying out highway improvements and approaches numerous land owners each year whenever privately owned land is required to implement an improvement scheme.

These schemes can range from the simple introduction of a sidewalk to more complex arrangements such as those currently proposed at Collectors Hill.

All such acquisitions by Government are governed by the provisions of the Acquisition of Land Act 1970, which allows the Minister of Works, Engineering and Housing to acquire land for highway improvements without the sanction of the Legislature.

Incidentally, this appears to be the only occasion whereby Government can acquire land without the approval of the Legislature.

The Act permits the Minister to acquire the land "by agreement" or where in the opinion of the Minister this is impracticable, or would cause undue delay, he may make a compulsory purchase order. In general, Government will usually proceed by way of a purchase by agreement, and generally shies away from compulsory purchase orders, unless the proposed improvement scheme is a high profile one involving public safety.

However, there will always be exceptions to this generalisation.

Whether they are proceeding by agreement or by compulsion your first step should be to retain an attorney to advise you on the legal aspects of the matter, and a valuation surveyor to advise you on the compensation aspects of the matter.

It is usual practice for Government to pay these costs for you upon successful completion of the transaction, but in the first instance you would be well advised to clarify this with them in writing to save any future misunderstanding.

If the acquisition is "by agreement" there are no time limits or statutory notices to be wary of, and the matter will proceed as quickly or as slowly as the respective negotiating positions of each party dictate as they seek to agree mutually satisfactory terms.

Unfortunately, not many land owners appreciate that whilst the proposed acquisition is "by agreement" Government is still obliged to adhere to the "Principles applicable to determination of value of land" as set out in Section 14 of the Act.

Consequently, this can lead to frustration for many land owners, since adherence to these statutory rules of valuation means that the offer made by Government for the land in question often falls short of the land owner's own financial expectations.

In such cases the acquisition either proceeds, and the land owner is left with a feeling of dissatisfaction, or negotiations falter.

Generally, when negotiations falter in this way Government will abandon the scheme and the highway improvement doesn't happen.

Statutory rules or not, nobody can blame a land owner who decides they don't want to sell because they don't think they're getting what the land is worth to them.

That said if the proposed scheme is considered high profile and involves public safety, then Government may decide to proceed by way of a compulsory purchase order.

When the acquisition is by way of a compulsory purchase order (CPO) the Minister will serve the CPO on the land owner, and will also publish it in the Gazette.

Usually at the same time as the Minister serves the CPO on the land owner he will also serve on them a Notice to Treat.

From the date the Notice to Treat is served the land owner has only 21 days to provide Government with the particulars of their estate (usually an extract from the title deeds) and six months to agree with the Minister the amount of compensation to be paid by Government to them.

Failing which the Act requires the Minister to refer the matter to arbitration, although in practice this seldom happens at this stage.

Government is able to enter and take possession of the acquired land within 14 days of the Notice to Treat provided the Minister has also served a Notice to Enter.

Government may not take possession without serving such a Notice, but once it is served and possession is taken they are obliged to pay statutory interest on the compensation monies ultimately agreed.

In conclusion, you can see that there are pros and cons of both approaches for the land owner.

With a purchase by agreement the land owner has more control over the situation and may decline to sell if the amount offered for the land isn't acceptable. One pitfall to avoid with a purchase by agreement is under no circumstance permit Government on to the land to carry out the improvement works until the terms of acquisition have been agreed.

Otherwise you may find yourself in a situation whereby the works have been completed and you have still not been able to agree to terms for the land.

In these circumstances your choices are limited, with arbitration not being an option unless Government is amenable to the same.

Whilst with a CPO you may as a land owner have less control than you would like over the timing of events, or the extent of the land taken, at least you have the option of going to arbitration to settle the terms of compensation if you are unhappy with what is being offered by Government.

Remember, the Minister is obliged to refer the matter to arbitration if compensation isn't agreed within six months of the Notice to Treat.

Anthony Turner is a Chartered Valuation Surveyor and Registered Professional Surveyor and heads up the Professional Services Team at Rego Realtors. You can write to him with your questions at aturner@regorealtors.bm

This column should not be used as a substitute for professional legal or valuation advice. Before proceeding with any matter discussed here persons are advised to consult with an attorney and/or a valuation surveyor.