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Section 10: Cost Charge for Passes (for LPA)

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Negotiation

Negotiation is the responsibility of the LPA. The LPA may acquire right of way before obtaining TxDOT's approved value, or acquire a parcel at a cost different from TxDOT's approved values. However, negotiations involving pass privileges are not to be finalized until TxDOT's concurrence is obtained since there can be no commitment for pass privileges without TxDOT approval.

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Deeds and Title Requirements

Pass privileges may be included in the deed through insertion of the following provision:

"Grantors, their heirs, or assigns shall have the privilege of passage between their remaining lands on either side of the highway facility through a pass provided in the highway construction. It is agreed and understood that the use and maintenance of the pass shall be subject to such regulations as are determined by the Texas Department of Transportation to be necessary in the interest of public safety and in compliance with approved engineering principles and practice. Said passageway across the highway right of way is more particularly described as follows: (Metes and bounds description. This description must be signed and sealed by an RPLS.).”

The deed is written in the amount of the cash consideration paid the owner without respect to pass costs. Usual title requirements apply with the exception that the title policy or staff attorney's certificate will except pass privileges included in the deed.

If an owner has existing pass privileges as a property right, and such right must be extinguished, the deed will contain a clause quitclaiming this interest.

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Special Purchase Agreement

On new or existing locations when neither policy nor design provision requires a pass facility at full TxDOT expense, the fixed amount to provide a pass, as determined in the right of way process, will be financed by the LPA or the property owner. This requires use of Form ROW-RM-137, Special Purchase Agreement , which must spell out the exact conditions of the parcel transaction. Contact the ROW Program Office in Austin if this form is needed. All negotiations are handled directly between the LPA and the owner, with the special purchase agreement requiring that any cash payment due the owner be paid by the LPA. Any cash contribution owed by the property owner is paid directly to the LPA. TxDOT is bound by contract to construct the pass structure.

When the purchase agreement is submitted for execution by the State, it must include the LPA's warrant, payable to the "Texas Department of Transportation," in the full amount of the estimated pass cost, which is the amount determined in the appraisal process as the added cost to provide the pass. TxDOT will reimburse the LPA for TxDOT's part of this right of way cost at the time of reimbursement for the parcel. When the pass cost exceeds the parcel cost, the LPA may elect to require full contribution from the landowner. However, TxDOT reimbursement will be limited to the LPA's actual cash payment (if any) for the parcel, including the estimated pass cost in an amount not to exceed 90 percent of TxDOT's approved parcel value without a pass facility.

Submit four copies of the special purchase agreement to the Department for approval before the closing of a transaction. Since the special purchase agreement provides that the contract will be null and void if owners can not deliver satisfactory title, title evidence does not need to be furnished when the purchase agreement is submitted for approval.

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Cost Charge

Costs for pass structures will be charged as outlined in Cost Charge for Passes (for State).

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