When reviewing a NSW Planning Certificate (also known as a Section 10.7 Certificate), Section 7 refers to whether any part of the land is reserved for acquisition under an environmental planning instrument. This information is crucial for potential buyers, developers, and investors because it indicates whether a government authority has identified the land for future acquisition.

What Does “Land Reserved for Acquisition” Mean?

Under Section 3.15 of the Environmental Planning and Assessment Act 1979 (NSW), an environmental planning instrument (EPI)—such as a Local Environmental Plan (LEP)—may designate land to be acquired by a public authority for public purposes. This could include uses such as:

• Roads and transport corridors
• Public open space (parks and reserves)
• Environmental conservation areas
• Infrastructure like drainage or utility corridors
• Schools or other community facilities

If the land is “reserved for acquisition,” it means that while the current owner may retain legal ownership, a public authority (e.g. Transport for NSW, Sydney Water, or Council) may have the right—or obligation—to acquire it in the future.

How Is This Information Disclosed?

Section 7 of the planning certificate asks:

"Is Council aware of an environmental planning instrument or proposed instrument that makes provision for the acquisition of the land by an authority of the State?"

The answer will typically be either YES or NO:

• NO = There is no known plan to acquire the land.
• YES = All or part of the land may be earmarked for future acquisition by a government body. The certificate may include additional details or mapping references if applicable.

Why It’s Important

If a property is reserved for acquisition:

• You may face restrictions on development of the land.
• You may be obligated to sell the land if a public authority initiates acquisition.
• The land may be subject to valuation or compensation rules under the Land Acquisition (Just Terms Compensation) Act 1991.
• It may impact your property’s market value, insurance, and financing potential.

Buyers and developers should conduct careful due diligence if Section 7 returns a "YES".

How to Respond

If the land is flagged in Section 7, you should:

1. Review the Local Environmental Plan (LEP) or contact council to confirm the specific reservation.
2. Seek professional advice from a town planner, solicitor, or property advisor.
3. Engage a valuer if acquisition or compensation is a possibility.
4. Consider implications for any future development or renovation.

Disclaimers

Legal Disclaimer: This content is intended to provide a general overview of the relevant legislation and should not be relied upon as legal advice. Property and planning laws are subject to change and may vary depending on specific site conditions and council policies. For advice tailored to your circumstances, please consult a qualified legal or planning professional.

General Disclaimer: This article is provided for general informational purposes only and does not constitute legal, planning, or environmental advice. While every effort has been made to ensure accuracy, the information may not reflect the most recent changes in law or policy. You should seek advice from a qualified professional or relevant authority before making any property-related decisions.