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Section 5: Establishment of Just Compensation Required (for State and LPA)

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Before initiation of negotiations, appraise the real property to establish just compensation. Give the property owner or its designated representative an opportunity to accompany the appraiser during inspection of the property.

An exception to this requirement is when a parcel will be donated and the property owner waives the establishment of just compensation through the appraisal process. See Right of Way Donations and Exchanges.

The other exception to an appraisal is when the Memorandum of Value (refer to TxDOT's ROW Appraisal and Review Manual) is used to determine just compensation. This option is usually limited to raw land value estimates, and even then it can only be used for purposes of making the initial offer. The final offer MUST be based on a full appraisal by a certified appraiser.

The amount of just compensation will not be less than the approved appraisal, taking into account the value of allowable damages or enhancements to any remaining property. For acquisition by negotiation, just compensation is the amount established as the approved value through the appraisal process and shown on form ROW-A-10 Tabulation of Values. See TxDOT's ROW Appraisal and Review Manual.

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