Is compensation valuation the same as a market valuation?
No. Compensation valuation is carried out under the Land Act / Village Land Act compensation rules and aims to restore the affected party to their prior position. It isn't simply an open-market price estimate.
Compensation valuation is the assessment carried out when land or property is acquired by the government or a public authority for public use, such as roads, utilities, or other infrastructure projects.
It applies whenever land, buildings, crops, or other developments are compulsorily acquired, or when a right of occupancy is revoked in the public interest.
A compensation valuation typically covers the value of the land itself, unexhausted improvements (buildings, crops, structures), and a disturbance allowance to reflect the inconvenience of being displaced.
Market valuation estimates what a willing buyer would pay a willing seller. Compensation valuation instead follows statutory rules designed to make the affected party whole. The two figures can differ.
Compensation valuations must be carried out by a registered valuer recognised by the Valuers Registration Board (VRB).
You're entitled to be notified, to have your property properly assessed, and to query or challenge a valuation you believe is incorrect through the proper channels.