Alternative Dispute Resolution for Compulsory Purchase Disputes is an RICS service designed to help resolve disputes between Acquiring Authorities (bodies that are legally empowered to obtain land or property without the consent of the owner) and land/property owners.
An Acquiring Authority may order a property to be compulsorily purchased in a variety of circumstances. In the United Kingdom, most orders are made using powers given to Acquiring Authorities under legislation. By way of example, a Highways Authority may need to build a motorway across a piece of land but the landowner does not want to sell, an order may be under the Highways Act 1980 to compulsorily purchase the land. Similarly, a town council may require demolition of properties to make way for new development. If the owners of such properties do not agree to sell, the council can exercise legal power granted under legislation to issue compulsory purchase orders and take possession of the properties.
Benefits of Alternative Dispute Resolution (ADR)
- Cost-effective and efficient resolution of disputes about amount of compensation to be paid.
- Compared to litigation, ADR is relatively simple and flexible, and parties can adapt the process to suit the relative size and complexity of their dispute.
- A tailored solution which is impartial and dependable;
- Easy to understand and can be adapted for a variety of dispute types.
Published date: 07 February 2023
Parties can choose:
Binding independent determination if they desire a quick and final resolution of a disputed issue and wish to avoid the time and costs of going to court.
or
Non-binding mediation which helps parties to work together to achieve a mutually agreeable settlement.
Independent determination
Independent determination is well suited to resolving:
- Lower value or single issue disputes
- where there is a clear difference of opinion between the parties, and
- where parties wish to achieve a binding, finalisation of the claim
It is quicker and less costly than going to court. A low value dispute is normally defined as where the difference between the parties is £60,000 or less. The process involves both parties making written submissions to an independent dispute resolver, who will assess the submissions and also use their experience and technical expertise to reach a decision on the dispute.
Evaluative mediation
This style of mediation is well suited for resolving higher value, complex cases where there is genuine capacity and appetite between the parties to reach a settlement. This process helps parties to engage in a meaningful dialogue and achieve a mutually agreed settlement with help from an impartial mediator, who is an expert in the subject matter. The mediator can, if required, also provide impartial recommendations for settlement.
Fees and Costs
Unless agreed differently, each party will:
- bear their own costs and expenses in relation to the mediation;
- pay the fees and expenses of the mediator and the fees of RICS equally;
- where relevant, be equally responsible for arranging and paying for room hire, refreshments and other disbursements.
RICS charges £300 (plus VAT) to process the application for the appointment of an appropriately qualified mediator. This appointment fee will be paid by the parties equally, in advance.
The fees payable to the mediator are £260 (plus VAT) per hour to a maximum of 9 hours, plus reasonable travel and other expenses, if any. Should the parties agree that more time is necessary, an hourly rate of £275 (plus VAT) will apply.
To apply for the appointment of an independent determiner or a mediator in a Compulsory Purchase Dispute, please return a completed application form to drs@rics.org
Published date: 15 March 2022
The regulatory functions of RICS relating to Dispute Resolution Service are led and overseen by the Standards and Regulation Board (SRB).