An updated standard for compulsory purchase orders

The Royal Institution of Chartered Surveyors’ (RICS) new compulsory purchase standard sets out a series of commandments for professional behaviour and competence.

Compulsory purchase order (CPO) is a process that allows acquiring authorities to buy land or acquire third-party rights to it without the consent of the owner. The process is used only where it is in the public interest.

In light of the new government’s intention to begin housebuilding at pace, there is likely to be an increased use of CPO to achieve the essential housing and infrastructure. Surveyors Advising in Respect of Compulsory Purchase and Statutory Compensation, Second Edition updates the RICS standard and is significant for professionals who are CPO specialists.

This updated standard sets out 21 mandatory professional behaviour and competence expectations. These include:

• being able to demonstrate a proper understanding of the statutes, statutory instruments, case law and government guidance in respect of the CPO process and compensation
• providing the client with balanced and professional advice that seeks to secure an equitable outcome for a reasonable cost and within a reasonable
• not accepting instructions to provide advice in matters unless professionals have the competence appropriate for the assignment and resources to complete the assignment within the timescale and to the standard required 
• establishing material information and collecting appropriate evidence and, where it’s not available, evidenced or corroborated satisfactorily, clearly stating this to the client and advising what assumptions have been made
• where an inspection of any property is required, carrying this out to the extent necessary to produce professionally competent advice; and

• ensuring fees and disbursements are reasonable in relation to the work required and that the contingent basis of the fee does not unduly influence the advice given.

The expectations cover providing the client with written records of every element, from confirming terms of engagement, fees and payment arrangements to identifying what has come to light during the course of the work, such as a professional changing their view or an inaccuracy being identified. For any instance of change – in instructions, in fees, in the responsibilities of the professional such as later having to act as an expert witness – the document states that clients should be informed in writing.

The notion of being transparent in all dealings is directly referenced. It asserts that professionals should tell their clients when they are working on anything that won’t be reimbursed by the acquiring authority and of any conflict of interest (actual or potential) as soon as it becomes apparent. It urges professionals to undertake due diligence in line with statutory (and RICS’ own) requirements for countering bribery and corruption, money laundering and terrorist financing. It even directly notes that clients (on either side) can, and do, seek to influence professionals and they should resist and remain true to their professionalism.

Fiona Mannix, RICS Senior Specialist for Land and Resources, says: “The refinements within this new edition of the standard will prove vital for those advising and acting on behalf of both acquiring authorities and claimants, ensuring best practice is adhered to by all.”

Download the new CPO standard at b.link/RICS_CPO

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