Anchor: #i1004460

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

Anchor: #i1004465

Procedure

Before initiation of negotiations, appraise the real property to establish just compensation.

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. Give the property owner or his designated representative an opportunity to accompany the appraiser during inspection of the property. See Right of Way Donations and Exchanges.

The other exception to an appraisal is when the Memorandum of Value (refer to TxDOT's Appraisal and Review Manual) is used to determine just compensation. This option is usually limited to raw land value estimates, and even then 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 Appraisal and Review Manual.

Previous page  Next page   Title page