Section 5: Form ROW-A-8, Memorandum of Value Determination

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This form is designed for uncomplicated properties where the right of way acquisition will not result in enhancement or damage to the remainder. When form ROW-A-8 Memorandum of Value Determination is used, compensation should not exceed $10,000.

The appraisal form ROW-A-8 Memorandum of Value Determination is a waiver valuation form and not an appraisal as defined by the Uniform Act and, therefore, is not required to comply with appraisal standards and requirements regardless of their source (49 CFR 24.102(c)(2)). A staff appraiser, not certified by TALCB, usually completes this form. In the event the staff appraiser is unable to complete the Memorandum of Value Determination, it is permissible that a ROW PD Staff Representative, knowledgeable of the parcel's area and familiar with land values complete the memorandum. Waiver valuation forms are not designed for use by Department Certified Appraisers.

This format has been developed to expedite the valuation process and to minimize the appraisal cost. Sources of land value data could be public sources of information. A discussion of the steps taken to arrive at the final compensation value should be provided in the area of the memorandum designated Summary of Comments, Conclusions, and Recommendation. An explanation of where to find sales should be included. On rural widening projects, it may be possible to use the Memorandum of Value Determination form for several of the required parcels. A parcel sketch, photograph and field notes are to be attached to this form.

The valuation process of using form ROW-A-8 Memorandum of Value Determination is defined as a non-appraisal valuation. The property owner must be informed this method of valuation is not a formal appraisal and does not produce an appraisal report.

CAVEAT: Property Code Section 21.0113(b)(4) requires that, as part of the making of a bona fide offer to the property owner, a condemning authority must "before making a final offer, the entity obtains a written appraisal from a Department Certified Appraiser of the value of the property being acquired and the damages, if any, to any of the property owner's remaining property". Since ROW-A-8 Memorandum of Value Determination is not an appraisal, is to be prepared by a non-Department Certified Appraiser, and assumes no remainder damages other than possible cost to cure damages, it must not be used as the basis of any final offer.

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