A Mount Cottrell property owner will seek compensation from the state government after his land, which falls under a public acquisition overlay, sold last week for what he believes was a fraction of its market value.
John Morton owns one of three parcels of land that went under the hammer last Wednesday for a combined $1.35 million.
The three parcels span 226 hectares and were earmarked for public acquisition eight years ago.
But the state government set no timeline for taking hold of the properties, leaving their owners in the lurch.
Mr Morton believes the land fetched about one-tenth of its market value, and he plans to claim ‘loss on sale’ (LOS) compensation.
Eligible land owners can claim LOS compensation if a property is sold at a price lower than might have been expected due to the detrimental effect of the public acquisition overlay on its value.
Land owners must provide the state planning minister with 60 days’ notice of their intention to sell land, and must prove they owned the property prior to the public acquisition overlay.
Mr Morton said he decided to sell his properties to force the government’s hand.
“They [the state government] have said they’re going to acquire it for eight years now, and we still haven’t got any money,” he said. “It could go on forever.
“If they want the land, we’re quite happy to sell it to them, but they just want to muck around.”
Mr Morton said the land had been in his family since 1920.
A spokesman for the Department of Environment, Land, Water and Planning said each LOS compensation claim was assessed on merit and probity.
But the spokesman would not comment on individual cases.
