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ADR for Compulsory Purchase Disputes

An Acquiring Authority can compel the purchase of land or property in various situations, typically under legal powers granted by legislation. For instance, if a new motorway is planned to pass through private land and the owner refuses to sell, the authority can force the sale.

This ADR service cannot be used to prevent or overturn the issuing of a Compulsory Purchase Order (CPO). Its purpose is to swiftly and cost-effectively resolve disputes arising between Acquiring Authorities and claimants during the compulsory acquisition of land or property. It helps settle issues like the property’s value, the costs of acquiring and moving to a new property, and additional payments such as professional advice on compensation.

Parties can choose to resolve their dispute via:

a. Independent Determination

The parties agree that the dispute will be decided for them by an experienced Independent Determiner who is also an expert in the subject matter. The Independent Determiner will base their decision on an assessment of:

i. the evidence submitted by each of the parties,

ii. the results of their own investigations,

and

iii. application of their own knowledge and expertise.

Independent determination is well suited to resolving disputes that are centred around a single question or issue such as the amount of compensation to be paid.

b. Evaluative Mediation

The parties agree to negotiate a settlement of the issues in dispute with the help of an experienced Mediator who is also an expert in the subject matter. The Mediator will help them to engage in meaningful dialogue, explore the issues in dispute in detail, and keep them focused on achieving an amicable outcome.

Mediation is well suited to disputes where that are multiple issues requiring resolution, or where the dispute is particularly complicated or impacted by peripheral matters, or where the claimant is a large business with more sophisticated wants and needs.

Application fee

An application fee of £300 plus VAT is payable to RICS for processing the appointment of an Independent Determiner or Mediator.

Independent determination

The fees payable to the Independent Determiner are £260 per hour (plus VAT) to a maximum of 12 hours, plus reasonable disbursements. Should the parties agree that more time is necessary, an hourly rate for additional hours will be agreed by the parties and the Independent Determiner.

Mediation

The fees payable to the Mediator are £260 plus VAT per hour to a maximum of 9 hours, plus reasonable disbursements. Should the parties agree that more time is necessary, an hourly rate will be agreed by the parties and the Mediator.

“The RICS ADR scheme offers a swift, cost effective and non-contentious means of resolving even the most complex compulsory purchase compensation disputes. Panel members are experts in this very specialist area with broad and in-depth experience of all its complexities and can help participants to reach a resolution either by way of mediation or expert determination.”

Meyric Lewis KC

FTB Chambers

“Whether its independent evaluation or determination, the RICS ADR options for compulsory purchase disputes provide acquiring authorities and claimants with a cost effective and swift alternative to pursuing a case through the Tribunal or Courts.”

Jeremy Zeid FRICS

Whirledge & Nott

Further information on this service including fees can be found in the User guide available here.

DRS2 CPO Application Form 2022 (PDF 0.16MB)

Published date: 15 March 2022

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The regulatory functions of RICS relating to Dispute Resolution Service are led and overseen by the Standards and Regulation Board (SRB).

ADR for Compulsory Purchase Disputes

How is a dispute resolved?

Fees