Compulsory Purchase (Vesting Declarations) Act 1981

• Citation: 1981 c. 66
• Sections: 65

Section 1 Application of Act.

(1) This Act has effect for the purpose of enabling any authority to whom this section applies to vest in themselves by a declaration land which they are authorised by a compulsory purchase order to acquire, and with respect to connected matters.

(2) This section applies to any Minister of local or other public authority authorised to acquire land by means of a compulsory purchase order.

Section 2 Interpretation and construction.

(1) In this Act—

“ acquiring authority ” means a Minister or other authority to whom section 1 above applies,

“ expedited procedure ” means the procedure (available in respect of unoccupied land etc or where there is no identifiable interest holder) whereby a general vesting declaration may vest the land in the acquiring authority less than three months from the date on which the service of notices required by section 6 is completed (see section 4(1ZA)(a) and sections 4A and 4B),

“ general vesting declaration ” means a declaration executed under section 4 below,

“ land ”, in relation to compulsory acquisition by an acquiring authority, has the same meaning as in the relevant enactments,

“ long tenancy which is about to expire ” has the meaning given by subsection (2) below,

“ minor tenancy ” means a tenancy for a year or from year to year, or any lesser interest,

“ prescribed ” means prescribed by regulations made by the Secretary of State which shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament,

“ relevant enactments ”, in relation to an acquiring authority, means the enactments under which that authority may acquire or be authorised to acquire land compulsorily and which prescribe a procedure for effecting the compulsory acquisition by them by means of a compulsory purchase order,

“ tenancy ” has the same meaning as in the Landlord and Tenant Act 1954,

“ vesting date ”, in relation to a general vesting declaration, has the meaning given by section 4(3) below.

(2) In this Act “ long tenancy which is about to expire ”, in relation to a general vesting declaration, means a tenancy granted for an interest greater than a minor tenancy, but having on the vesting date a period still to run which is not more than the specified period (that is to say, such period, longer than one year, as may for the purposes of this definition be specified in the declaration in relation to the land in which the tenancy subsists).

In determining for the purposes of this subsection what period a tenancy still has to run on the vesting date it shall be assumed—

(a) that the tenant will exercise any option to renew the tenancy, and will not exercise any option to terminate the tenancy, then or thereafter available to him,

(b) that the landlord will exercise any option to terminate the tenancy then or thereafter available to him.

(3) Section 330 of the Town and Country Planning Act 1990 (information as to interests in land) shall have effect as if this Act were part of that Act.

Section 3 Preliminary notices.

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Section 4 Execution of declaration.

(1) The acquiring authority may execute in respect of any of the land which they are authorised to acquire by the compulsory purchase order a declaration in the prescribed form vesting the land in themselves from the end of such period as may be specified in the declaration ....

(1ZA) That period must be—

(a) where the expedited procedure is available (see section 4A), not less than six weeks from the date on which the service of notices required by section 6 is completed;

(b) otherwise not less than three months from that date.

(1A) But an acquiring authority may not execute a declaration in respect of land if they have served a notice to treat in respect of that land and have not withdrawn it.

(1B) In subsection (1A) the reference to an authority having “served” a notice does not include cases in which the authority is deemed to have served a notice.

(2) For the purposes of this Act a certificate by the acquiring authority that the service of notices required by section 6 below was completed on a date specified in the certificate shall be conclusive evidence of the fact so stated.

(3) For the purposes of this Act the “ vesting date ” in relation to any land that is actually specified in a general vesting declaration is—

(a) the first day after the end of the period specified in the declaration in accordance with subsection (1) above, or

(b) if a counter-notice is served under paragraph 2 of Schedule A1 within that period in relation to land, the day determined as the vesting date for the land in accordance with that Schedule.

(4) For the purposes of this Act, the “vesting date” for any land that is deemed to have been specified in a general vesting declaration by Schedule A1 is the day determined as the vesting date for the land in accordance with that Schedule.

Section 4A Vesting date: expedited procedure

(1) The expedited procedure is available in relation to a general vesting declaration if—

(a) the specified land is unoccupied,

(b) the acquiring authority considers that, by reason of disrepair, neglect, contamination, or risk to health or safety, the specified land is unfit for its ordinary use, and

(c) Schedule A1 does not apply to the declaration.

(2) The expedited procedure is also available in relation to a general vesting declaration if the acquiring authority has been unable to identify any person with an interest in the specified land.

(3) Land is not to be regarded as occupied for the purposes of subsection (1)(a)—

(a) if it is occupied only by persons who do not have a right to occupy it;

(b) because of the presence of chattels on the land if the chattels appear to the acquiring authority to be of no significant value.

(4) The ordinary use of land is to be taken for the purposes of subsection (1)(b) to be—

(a) so far as the land comprises buildings or other features designed or adapted for a particular use, that use, and

(b) so far as the land does not comprise such buildings or features, its most recent lawful use.

(5) If the specified land includes one or more dwellings, the acquiring authority may decide that it is unfit for its ordinary use only if it considers that the dwelling, or each of those dwellings, is unfit for human habitation within the meaning of the Landlord and Tenant Act 1985 (see section 10 of that Act).

(6) In this section—

“ dwelling ” means a building or part of a building designed or adapted for occupation as a separate dwelling;

“ the specified land ” means the land specified in the general vesting declaration.

Section 4B Expedited procedure: process

(1) This section applies where the acquiring authority has executed a general vesting declaration under the expedited procedure.

(2) A person may, at any time before the end of the period of four weeks beginning with the date on which the general vesting declaration is executed, make representations to the acquiring authority that the expedited procedure is not available in relation to the declaration.

(3) The representations need not be in writing.

(4) The acquiring authority must provide a written response to the representations before the end of the period of seven days beginning with the day on which it received them.

(5) If, at any time between the execution of the general vesting declaration and the vesting date, the acquiring authority becomes aware of a reason why the expedited procedure is not available (whether as a result of representations or otherwise), the authority must amend the general vesting declaration so that the period specified in it complies with section 4(1ZA)(b) (period of at least three months from service of notices).

(6) If the acquiring authority amends the general vesting declaration under subsection (5), it must serve notice of the amendment on—

(a) every person who has made representations under subsection (2), and

(b) every person who was served a notice about the declaration under section 6.

Section 5 Earliest date for execution of declaration.

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(2) A declaration under section 4 above shall not be executed before the compulsory purchase order has come into operation, and this subsection applies in particular where the compulsory purchase order is subject to special parliamentary procedure and therefore does not come into operation in accordance with section 26(1) 26 of the Acquisition of Land Act 1981 or any corresponding provision of the relevant enactments.

Section 5A Time limit for general vesting declaration

(1) A general vesting declaration may not be executed after the end of the applicable period beginning with the day on which the compulsory purchase order becomes operative.

(2) The applicable period is—

(a) 3 years, or

(b) such longer period as is specified in the order for the purposes of this section.

Section 5B Extension of time limit during challenge

(1) If an application is made under section 23 of the Acquisition of Land Act 1981 (application to High Court in respect of compulsory purchase order), the applicable period for the purposes of section 5A is to be extended by—

(a) a period equivalent to the period beginning with the day the application is made and ending on the day it is withdrawn or finally determined, or

(b) if shorter, one year.

(2) An application is not finally determined for the purposes of subsection (1)(a) if an appeal in respect of the application—

(a) could be brought (ignoring any possibility of an appeal out of time with permission), or

(b) has been made and not withdrawn or finally determined.

Section 6 Notices after execution of declaration.

(1) As soon as may be after executing a general vesting declaration the acquiring authority shall serve—

(a) on every occupier of any of the land specified in the declaration (other than land in which there subsists a minor tenancy or a long tenancy which is about to expire), and

(b) on every other person who has given information to the acquiring authority with respect to any of that land in pursuance of the invitation published and served under section 15 of, or paragraph 6 of Schedule 1 to, the Acquisition of Land Act 1981 ,

a notice in the prescribed form specifying the land and stating the effect of the declaration.

(1A) In a case where the period specified in the declaration under section 4(1) is less than three months, the notice must also state—

(a) that the acquiring authority considers that the expedited procedure is available under section 4A(1) or (2) (as the case may be);

(b) the vesting date;

(c) that any person who disagrees that the expedited procedure is available may make representations to the acquiring authority under section 4B(2);

(d) that if, before the vesting date, the acquiring authority no longer considers that the expedited procedure is available, the authority will amend the general vesting declaration so that the period specified in it complies with section 4(1ZA)(b) (period of at least three months from service of notices).

(2) Section 329 of the Town and Country Planning Act 1990 (service of notices) shall apply as if this section formed part of that Act.

Section 7 Constructive notice to treat.

(1) Subject to sections 8A and 8B , on the vesting date the provisions of—

(a) the Land Compensation Act 1961 (as modified by section 4 of the Acquisition of Land Act 1981),

(b) the Compulsory Purchase Act 1965, and

(c) Schedule A1 to this Act,

shall apply as if, on the date on which the general vesting declaration was executed, a notice to treat had been served on every person on whom, under section 5 of the Compulsory Purchase Act 1965, the acquiring authority could have served such a notice, other than any person entitled to a minor tenancy or a long tenancy which is about to expire.

(2) For the purposes of subsection (1) above it shall be assumed that the acquiring authority required to take the whole of the land specified in the declaration and had knowledge of all the parties referred to in section 5 of the Compulsory Purchase Act 1965.

(3) The power conferred by section 31 of the Land Compensation Act 1961 to withdraw a notice to treat shall not be exercisable in respect of a notice to treat which is deemed to be served under this section.

Section 8 Vesting, and right to enter and take possession.

(1) Any land specified in the general vesting declaration, together with the right to enter upon and take possession of it, shall, subject to sections 8A , 8B and 9 below, vest in the acquiring authority on the vesting date in relation to that land as if—

(a) the circumstances in which under Part I of the Compulsory Purchase Act 1965 an authority authorised to purchase land compulsorily have any power to execute a deed poll had arisen in respect of all the land, and all interests therein, and

(b) the acquiring authority had duly exercised that power accordingly on the vesting date.

(2) Subsection (1)(a) above applies to any deed poll whether for vesting land or any interest in land in the acquiring authority, or for extinguishing the whole or any part of any rent-service, rentcharge, chief or other rent, or other payment or incumbrance.

(3) Section 11(1) of the Compulsory Purchase Act 1965 (power to enter upon land after service of notice to treat) shall not apply to land specified in a general vesting declaration.

Section 8A Postponement of vesting by agreement

(1) The acquiring authority may agree in writing with the owner of any interest which is to vest in the authority under section 8 that the interest is to vest on a date after the vesting date.

(2) If such an agreement is in force on the vesting date, sections 7 and 8 operate in relation to the interest as if the vesting date were—

(a) the agreed date, or

(b) any date subsequently agreed under subsection (1).

(3) If an interest subject to an agreement under this section entitles the owner to possession of the land concerned, the right to enter upon and take possession of the land given by section 8 does not arise until the interest vests in accordance with this section.

Section 8B Advancement of vesting by agreement

(1) The acquiring authority may agree in writing with the owner of any interest which is to vest in the authority under section 8 that the interest is to vest on a date before the vesting date.

(2) The agreed date may not be before the day after the last day on which a person may bring proceedings for questioning the compulsory purchase order.

(3) If an agreement under subsection (1) is in force—

(a) section 7 (other than section 7(1)(c)) and section 8 operate in relation to the interest as if the vesting date were the agreed date;

(b) an owner of an interest who is a party to the agreement may not serve a counter-notice under paragraph 2 of Schedule A1 (counter-notice requiring purchase of additional land).

(4) But if the interest subject to the agreement does not entitle the owner to possession of the land concerned, subsection (3)(a) does not advance the date on which the right to enter on and take possession of the land arises under section 8.

Section 9 Minor tenancies and tenancies about to expire.

(1) This section applies where any land specified in a general vesting declaration is land in which there subsists a minor tenancy or a long tenancy which is about to expire.

(2) The right of entry conferred by section 8(1) above shall not be exercisable in respect of that land unless, after serving a notice to treat in respect of that tenancy, the acquiring authority have served on every occupier of any of the land in which the tenancy subsists a notice stating that, at the end of such period as is specified in the notice (not being less than 3 months ) from the date on which the notice is served, they intend to enter upon and take possession of such land as is specified in the notice, and that period has expired.

(3) The vesting of the land in the acquiring authority shall be subject to the tenancy until the period specified in a notice under subsection (2) above expires, or the tenancy comes to an end, whichever first occurs.

Section 10 Acquiring authority’s liability arising on vesting of the land.

(1) Where any of the land specified in a general vesting declaration has become vested in an acquiring authority by virtue of Part III of this Act, the acquiring authority shall be liable to pay the like compensation, and the like interest on the compensation agreed or awarded, as they would have been required to pay if they had taken possession of the land under section 11(1) of the Compulsory Purchase Act 1965.

(1A) Where by virtue of an agreement under section 8A or 8B different interests in the land vest in the acquiring authority on different dates, subsection (1) does not give rise to any liability in relation to an interest until that interest becomes vested.

(2) Section 22 of the Compulsory Purchase Act 1965 and Schedule 2 to that Act (absent and untraced owners) shall not apply to the compensation to be paid for any interest in land in respect of which a notice to treat is deemed to have been served by virtue of Part III of this Act.

(3) The time within which a question of disputed compensation arising out of an acquisition of an interest in land in respect of which a notice to treat is deemed to have been served by virtue of Part III of this Act may be referred to the Upper Tribunal shall be 6 years from the date at which the person claiming compensation, or a person under whom he derives title, first knew, or could reasonably be expected to have known, of the vesting of the interest by virtue of Part III of this Act.

This subsection shall be construed as one with Part I of the Limitation Act 1980.

Section 11 Recovery of compensation overpaid.

(1) This section applies where after the execution of a general vesting declaration a person (“the claimant”) claims compensation in respect of the acquisition by the acquiring authority of an interest in land by virtue of the declaration, and the authority pay compensation in respect of that interest.

(2) If it is shown that—

(a) the land, or the claimant’s interest in it, was subject to an incumbrance which was not disclosed in the particulars of his claim, and

(b) that by reason of that incumbrance the compensation paid exceeded the compensation to which the claimant was entitled in respect of that interest,

the acquiring authority may recover from the claimant the amount of the excess.

(3) If it is shown that the claimant was not entitled to the interest, either in the whole or in part of the land to which the claim related, the acquiring authority may recover from the claimant an amount equal to the compensation paid, or as the case may be an amount equal to so much of that compensation as, on a proper apportionment, is attributable to that part of the land.

(4) Any question arising under subsection (2) or (3) above as to—

(a) the amount of the compensation to which the claimant was entitled in respect of an interest in land, or

(b) the apportionment of any compensation paid,

shall be referred to and determined by the Upper Tribunal.

(5) Subject to subsection (4) above, any amount recoverable by the acquiring authority under this section shall be recoverable in any court of competent jurisdiction.

(6) If the acquiring authority are a local authority (as defined in section 336(1) of the Town and Country Planning Act 1990 ) any sum recovered by them under this section shall be applied towards the repayment of any debt incurred in acquiring or redeveloping the land, or if no debt was so incurred shall be paid into the account out of which sums incurred in the acquisition of that land were paid.

Section 12 Divided land.

Schedules A1 and 1 to this Act shall have effect.

Section 13 Right of recovery of mistaken payment of rent, etc.

Where any of the land specified in a general vesting declaration has become vested in an acquiring authority under Part III of this Act, any person who, in consequence thereof, is relieved from any liability (whether in respect of a rentcharge, rent under a tenancy mortgage interest or any other matter) and makes any payment as in satisfaction or in part satisfaction of that liability shall, if he shows that when he made the payment he did not know of the facts which constituted the cause of his being so relieved, or of one or more of those facts, be entitled to recover the sum paid as money had and received to his use by the person to whom it was paid.

Section 14 Documents of title.

Where, after land has become vested in an acquiring authority under Part III of this Act, a person retains possession of any document relating to the title to the land, he shall be deemed to have given to the acquiring authority an acknowledgment in writing of the right of the authority to production of that document and to delivery of copies thereof and (except where he retains possession of the document as mortgagee or trustee or otherwise in a fiduciary capacity) an undertaking for safe custody thereof; and section 64 of the Law of Property Act 1925 shall have effect accordingly, and on the basis that the acknowledgment and undertaking did not contain any such expression of contrary intention as is mentioned in that section.

Section 15 Application to orders under section 141 of the Local Government, Planning and Land Act 1980.

In relation to any order under section 141 of the Local Government, Planning and Land Act 1980 (which provides that such an order shall have the same effect as a general vesting declaration) this Act shall have effect subject to the modifications specified in Schedule 2 to this Act.

Section 16 Consequential amendments and repeals.

(1) The enactments specified in Schedule 3 to this Act shall have effect subject to the amendments specified in that Schedule, being amendments consequential upon the provisions of this Act.

(2) The transitional provisions in Schedule 4 to this Act shall have effect.

(3) The enactments specified in Schedule 5 to this Act shall be repealed to the extent specified in the third column of that Schedule.

Section 17 Short title, commencement and extent.

(1) This Act may be cited as the Compulsory Purchase (Vesting Declarations) Act 1981.

(2) This Act shall come into force at the expiration of a period of three months beginning with the date on which this Act is passed.

(3) This Act shall not extend to Scotland or Northern Ireland.

Section 1

(1) This Schedule applies where an acquiring authority have executed a general vesting declaration in respect of part only of a house, building or factory.

(2) But see section 2A of the Acquisition of Land Act 1981 (under which a compulsory purchase order can exclude from this Schedule land that is 9 metres or more below the surface).

Section 2

A person able to sell the whole of the house, building or factory (“ the owner ”) may serve a counter-notice requiring the authority to purchase the owner's interest in the whole (but this is subject to section 8B(3)(b)).

Section 3

A counter-notice under paragraph 2 must be served before the end of the period of 28 days beginning with the day the owner first had knowledge of the general vesting declaration.

Section 4

In a case where this Schedule applies by virtue of a general vesting declaration executed after a counter-notice has been served under paragraph 4 or 17 of Schedule 2A to the Compulsory Purchase Act 1965, that counter-notice is to have effect as a counter-notice served under this Schedule.

Section 5

(1) In this Schedule—

“ additional land ” means the part of the house, building or factory not specified in the general vesting declaration;

“ house ” includes any park or garden belonging to a house;

“ land proposed to be acquired ” means the part of the house, building or factory specified in the general vesting declaration;

“ notice to treat ” means a notice to treat deemed to have been served under section 7(1);

“original vesting date” is , subject to sub-paragraph (2) the first day after the end of the period specified in the general vesting declaration in accordance with section 4(1).

(2) If an agreement under section 8A is in force in respect of the interest which gives the owner the ability to sell the land proposed to be acquired, the “original vesting date” is the date on which the interest is to vest as a result of the agreement.

Section 6

(1) On receiving a counter-notice the acquiring authority must decide whether to—

(a) withdraw the notice to treat in relation to the land proposed to be acquired,

(b) accept the counter-notice, or

(c) refer the counter-notice to the Upper Tribunal.

(2) But the acquiring authority may not decide to withdraw the notice to treat if the counter-notice was served on or after the original vesting date.

Section 7

The authority must serve notice of their decision on the owner within the period of 3 months beginning with the day on which the counter-notice is served (“the decision period”).

Section 8

If the authority decide to refer the counter-notice to the Upper Tribunal they must do so within the decision period.

Section 9

(1) This paragraph applies if the acquiring authority do not serve notice of a decision within the decision period.

(2) If the counter-notice was served before the original vesting date, the authority are to be treated as if they had served notice of a decision to withdraw the notice to treat in relation to the land proposed to be acquired.

(3) If the counter-notice was served on or after the original vesting date, they are to be treated as if they had served notice of a decision to accept it.

Section 10

If the acquiring authority serve notice of a decision to withdraw the notice to treat in relation to the land proposed to be acquired the general vesting declaration is to have effect as if it did not include that land.

Section 11

(1) This paragraph applies where the acquiring authority serve notice of a decision to accept the counter-notice.

(2) The general vesting declaration and the notice to treat (and, where applicable, the compulsory purchase order) are to have effect as if they included the owner's interest in the additional land as well as in the land proposed to be acquired.

(3) The authority must serve on the owner a notice specifying the vesting date or dates for—

(a) the land proposed to be acquired (if the counter-notice was served before the original vesting date), and

(b) the additional land.

(4) The new vesting date for the land proposed to be acquired must not be before the original vesting date.

(5) The vesting date for the additional land must be after the period of 3 months beginning with the day on which the notice under sub-paragraph (3) is served.

Section 12

(1) This paragraph applies where—

(a) the acquiring authority refer the counter-notice to the Upper Tribunal, and

(b) the counter-notice was served before the original vesting date.

(2) At any time before the Upper Tribunal make a determination under paragraph 14, the acquiring authority may serve notice on the owner specifying a new vesting date for the land proposed to be acquired.

(3) The new vesting date for the land proposed to be acquired must not be before the original vesting date.

Section 13

This Part applies where, in accordance with paragraph 8, the acquiring authority refer a counter-notice to the Upper Tribunal.

Section 14

(1) The Upper Tribunal must determine whether the severance of the land proposed to be acquired would—

(a) in the case of a house, building or factory, cause material detriment to the house, building or factory, or

(b) in the case of a park or garden, seriously affect the amenity or convenience of the house to which the park or garden belongs.

(2) In making its determination, the Upper Tribunal must take into account—

(a) the effect of the severance,

(b) the proposed use of the land proposed to be acquired, and

(c) if that land is proposed to be acquired for works or other purposes extending to other land, the effect of the whole of the works and the use of the other land.

Section 15

If the Upper Tribunal determines that the severance of the land proposed to be acquired would have either of the consequences described in paragraph 14(1) it must determine how much of the additional land the acquiring authority ought to be required to take in addition to the land proposed to be acquired.

Section 16

(1) This paragraph applies where the Upper Tribunal specifies in its determination that the acquiring authority ought to be required to take the whole or part of the additional land (“the specified land”).

(2) The general vesting declaration and any notice to treat (and, where applicable, the compulsory purchase order) are to have effect as if they included the owner's interest in the specified land.

(3) The Upper Tribunal must order a vesting date for—

(a) the specified land, and

(b) any land proposed to be acquired which has not vested in the authority and for which no vesting date has been specified under paragraph 12.

(4) If the vesting date for the specified land is after the vesting date for any land proposed to be acquired, the Upper Tribunal's power to award compensation under section 7 of the Compulsory Purchase Act 1965 includes power to award compensation for any loss suffered by the owner by reason of the temporary severance of the land proposed to be acquired from the specified land.

Section 17

(1) This paragraph applies where—

(a) the Upper Tribunal has specified in its determination that the acquiring authority ought to be required to take the whole or part of the additional land (“the specified land”), and

(b) the vesting date in relation to the land proposed to be acquired has not passed, and

(c) the vesting date in relation to the specified land has not passed.

(2) The acquiring authority may, within the period of 6 weeks beginning with the day on which the Upper Tribunal made its determination, withdraw the notice to treat in relation to the land proposed to be acquired together with the specified land.

(3) If the acquiring authority withdraws the notice to treat, the general vesting declaration is to have effect as if it did not include that land.

(4) If the acquiring authority withdraws the notice to treat under this paragraph they must pay the person on whom the notice was served compensation for any loss or expense caused by the giving and withdrawal of the notice.

(5) Any dispute as to the compensation is to be determined by the Upper Tribunal.

Section 1

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Section 2

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Section 3

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Section 4

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Section 5

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Section 6

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Section 7

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Section 8

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Section 9

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Section 10

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