(1) On receipt of any such application the Director of Agricultural Services shall cause a notice in the form prescribed in Schedule 5 to be served on both parties at least 7 days before the day appointed therein for the arbitration proceedings, and a copy of such notice shall also be sent to the magistrate of the district in which the holding is situated.
(2) On the day appointed in the notice and on proof of due service of the notice the Director of Agricultural Services or his or her nominee may proceed to determine the value of the improvements to the holding (whether either or both of the parties be present or not).