Chapter 7: Procedures Regarding Advertising Sign Interests

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Section 1: Advertising Sign Interests

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Procedure

When the pre-appraisal contact and inspection shows the presence of an advertising sign within the parcel, follow the following procedures before conducting the appraisal of the property:

  • Where landowner also owns the advertising sign:
    • Determine whether the landowner also owns the sign structure. If the property owner does own the sign structure, then proceed with conducting the appraisal, and advise the appraiser of such ownership. The appraiser should be instructed to consider the sign structure itself to be personal property and not include the value of the structure in the appraisal of the real property. The landowner should be provided relocation information relating to the sign structure (in the manner set out below, including the possibility of relocating the sign to the remainder where a partial acquisition is involved), and other relocation information should also be provided should the landowner also be considered displaced by the acquisition.
  • Where landowner does not own the advertising sign, complete all requirements listed below, before proceeding with the appraisal:
  • If the property owner does not own the advertising sign, do not acquire the sign structure as part of the land being acquired, but consider the sign structure itself to be personal property. Where an advertising sign is located upon the parcel and the sign is not owned by the property owner, attempt to obtain the following information from both the property owner and the sign owner relating to such sign:
    • By what authority or authorization is the sign allowed upon the property, and if by a written agreement, obtain a copy of such agreement (lease agreement usually). If unable to obtain a copy of a written agreement, obtain as much information as possible regarding any agreement authorizing the sign (such as whether there is in fact a written agreement, even though a copy may not be obtained from the landowner or the sign owner, how long the sign has been on the property, and when does the current agreement expire).
    • Check the sign structure for the presence of a permit number and verify with the District Sign personnel to determine if the sign at this location has a current valid sign permit. If the sign is located within a municipality that is certified by TXDOT to issue its own sign permits, such verification should be made with the municipality.
    • If the parcel is only a partial acquisition, so there is a remainder, is the property owner willing to allow the sign owner to move and relocate the sign onto the remainder?

If the District has been able to verify that there is a valid ground lease associated with the sign structure currently in effect with a remaining term of more than a month to month time period, the appraisal of the parcel may proceed, with the appraiser being instructed to consider the sign structure itself to be personal property and not include the value of the structure in the appraisal of the real property. All information obtained relating to the terms of the ground lease that is associated with the sign should be provided to the appraiser, and the appraiser should consider the ground lease as part of the real property appraisal in the manner set out under “Advertising Sign Sites” in TxDOT’s Appraisal and Review Manual.

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Relocation Procedures For Signs With Valid Permits

Where it has been verified above that the sign upon a specific parcel has a valid permit for the location upon such parcel, the additional procedures set out below regarding the relocation of such a legal sign should be followed. In the event it has definitely been determined that the sign does not have a valid permit, and is therefore considered an “illegal” sign, no relocation benefits or procedures should be offered to the sign owner. However, in such event, the ground lease associated with such sign structure (if separately determined to be a valid ground lease and for more than a month to month time period) will still need to be included in the appraisal of the parcel itself and such ground lease either released (quitclaimed) by the sign owner prior to or at the closing of the parcel, or acquired through the eminent domain process in the same manner as other real property leases. Note: It is the general policy and procedure of the ROW Division to not close with the fee owner of the parcel without first having obtained a release of other real property leases that have more than a month to month term remaining (including ground leases associated with advertising sign structures).

If the parcel with the sign located upon it is located within a municipality or the extraterritorial jurisdiction (ETJ) of a municipality, the District Right of Way Agent should determine whether there are any local zoning regulations that would restrict or prohibit the relocation of an existing sign onto the remainder of the same property or elsewhere upon another property within the municipality).

If there appear to be no local restrictions on relocating the sign either onto the remainder or to another location within the general vicinity, the District Right of Way Agent should make contact with the sign owner and determine if sign owner will relocate the sign (either onto the remainder if the landowner will permit, or to another site of the sign owner’s selection in the vicinity). The District Right of Way Agent should advise the sign owner that the sign owner may be eligible to receive payment of relocation benefits associated with such sign relocation. If there are local (municipal) zoning restrictions that prohibit the relocation of t