UNENCUMBERED
FEE SIMPLE IN POSSESSION
The
subject land is assumed to have a "clean" title so as to
expedite the carrying out of mass valuations. The NSW Royal
Commission considered this assumption as follows:
If
the submissions were conceded it would be necessary to value every
estate or interest. This would create difficulties in valuation far
greater than any which may now apply in the determination
of the hypothetical fee simple" para 73.
Land
Value requires an unencumbered fee simple in possession value. That
is, the owner is assumed to have full freehold title without any
encumbrance and is entitled to vacant possession for example, without
the encumbrance of a mortgage - Langford v WLC
(1959) 15 The Valuer 374.
Although
private restrictions on title are ignored any general or public
control is taken into account - Royal Sydney Golf Club v
The Comm of Tax (1957) 91 CLR 610. Therefore, town
planning controls are taken into account as well as general
government policy.