Compulsory purchase orders follow a process — here's how it works

A compulsory purchase order allows a statutory body to take land, whether the owner want to sell or not. It is important for landowners to know their rights

Compulsory purchase orders tend to be made when the land in question is needed for wider community benefits, such as Luas Cork. File picture

You may have noticed compulsory purchase orders (CPOs) cropping up in the news again lately. 

In Cork, landowners are anticipating CPO notices for the new Cork to Kinsale Greenway, and in the not so distant future, the Cork Luas project. 

In Dublin, landowners along the new proposed DART route have begun to receive CPO notices. 

For those who are caught up in it, or thinking they might be, it can be quite daunting. 

A CPO allows a statutory body to take your land, whether you want to sell it or not. 

As a landowner, it is important to know your rights in order to protect your interests and secure a fair outcome.

So, what exactly is a CPO and who gets to make one? What do you do when you receive a CPO notice, and what can you actually do about it? 

What actually is a CPO?

Essentially, a CPO allows a statutory body, such as a local authority, to purchase privately owned land without the landowner’s agreement. 

This may sound drastic, but it is important to know that the landowner is entitled to compensation. 

The idea here is to put the landowner in the same financial position that they would have been in if the CPO were never issued, insofar as money can achieve this.

Why are CPOs made?

CPOs tend to be made when the land in question is needed for wider community benefits, such as public infrastructure, greenways, housing, and new transport links. 

The delivery of essential transport links is a common reason for CPOs in Ireland. For example, the wider benefit of an improved DART service is seen as too important to allow individual landowners to hold it up.

That said, an acquiring authority must be able to justify its CPO before it looks to acquire your land. 

It has to point to a genuine compelling public interest and show it has the requisite legal power to act. 

In Ireland, this power generally falls under one of the following acts: The Housing Act 1966 (as amended), The Roads Act 1993, The Planning and Development Acts, and The Land Development Agency Act 2021.

What happens next? The step-by-step process.

If you are concerned that a CPO is coming your way, you may be wondering what the process is really like? 

The first step to protecting your rights is knowing what to expect. The process will generally take the following form:

• You are notified: You, as the landowner, will be formally notified that the CPO is being placed on public display and submitted to An Coimisiún Pleanála for the green light. These notices may also be published in local newspapers.
• You can object You are given the opportunity to make written objections or submissions to An Coimisiún Pleanála within a specified period. This will vary depending on which law the CPO falls under, so you should read the notice carefully.
• The objection is assessed If objections are received but not resolved, An Coimisiún Pleanála assesses the CPO and may appoint a Planning Inspector to review the matter. This process may involve an Oral Hearing, which is a chance for both parties to make their case with planning, engineering, environmental, or valuation evidence.
• A decision is made After considering the inspector’s report and any submissions, An Coimisiún Pleanála may confirm, amend, or reject the CPO. This decision will then be published.
• The CPO is confirmed and there is a further window to challenge Once the objection period expires, the CPO is confirmed and takes effect. If you still think that the CPO is wrong, you can apply to the High Court within three weeks of publication of the confirmation notice on limited grounds: you can argue that either the CPO goes beyond what the Act allows the acquiring authority to do, or your interests have been seriously harmed because the Act was not followed correctly. You should note that this is a very limited window to challenge and is not to be thought of as a fresh opportunity to argue the underlying merits of the CPO.
• Notice to Treat Once confirmed, you will be served with a Notice to Treat from the acquiring authority. This is a formal request to negotiate a purchase price for the land identified in the CPO and is your opportunity to submit details of your compensation claim. A compulsory purchase relationship is now considered to be established: the acquiring authority is committed to buy, and you are required to sell. The price is negotiated through the statutory compensation process.
• Notice of Entry Around the same time, you will receive a Notice of Entry. This allows the acquiring authority to enter and take possession of your land. This can happen before compensation has been agreed or paid. You will be given a minimum 14 days’ notice and access is usually agreed between solicitors.
• Compensation Compensation is guided by the principle of equivalence, that is, you should be put in the same financial position as before the acquisition. You can be assured that your compensation claim will be assessed on its own facts, independent of other landowners who may be subject of the same CPO. The main compensation elements are:

• Valuation: the open market value of the land;
• Injurious affection and severance: the reduction in value of the land you keep, whether through damage caused by construction works or the use of the land after the CPO; and 
• Disturbance: loss suffered by your business or home life being disrupted. This element only covers your own property, that is, not loss suffered as a result of neighbouring CPOs.

Once a Notice to Treat is received, you should immediately engage with the process and seek independent professional advice. 

A valuer can prepare your compensation claim and negotiate with the local authority’s valuer. 

If you cannot agree on a compensation figure, either you or the acquiring authority can bring in an independent property arbitrator, who will issue a binding determination once both sides have given evidence. Once a figure has been settled on, the conveyancing process begins and ownership is transferred to the acquiring authority. You will be paid once this process is completed.

The bottom line 

Ultimately, CPOs exist because the public interest in a new public project outweighs an individual’s right to hold on to their private land, but that does not mean that you are being left high and dry. 

If you are concerned about a CPO, the advice is to simply understand your rights, engage with the process early, and seek professional advice.

• Áine O'Brien is a commercial real estate Solicitor at RDJ LLP