Section 3: Use of Fee and Staff Appraisers
Anchor: #i1004897General
Staff appraisers may be used in the same capacity as fee appraisers. Other than the value limitations placed upon a staff appraiser in approving his/her individual qualifications, there is no limitation on the cost or type of parcel on which the staff appraiser may be used.
Staff personnel usually accomplish appraisal review work. Staff appraisers and appraisal reviewers operate under the same job classification titles, and the individual employee’s duties may include both review and appraisal work, provided there is no conflict between the two.
A staff appraiser may not appraise and be the appraisal reviewer on the same parcel. Staff appraisers may perform negotiation duties, but not on the same parcel in which they participated in the appraisal or review work. However, the same person may both appraise and negotiate an acquisition where the value of the acquisition is $10,000 or less, when necessary, per Federal regulations contained in 49CFR Part 24.102(n).
Anchor: #i1004921Fee Appraiser Contracts
The District recommends a fee appraiser for appointment by submitting one copy of Form ROW-A-1, Appraiser Pre-Certification Application (previously submitted by the appraiser), and the original and two copies of Form ROW-A-2, Contract for Appraisal Services, executed by the District Engineer and the appraiser, to the Appraiser Application Approval Committee.
The Appraiser Application Approval Committee reviews the application and contract, submitting the original and two copies of the contract to the ROW Division Director for approval. Two copies of the approved ROW-A-2 are returned, one each for the District’s and the appraiser’s files. No work orders should be assigned before receipt of ROW Division’s letter of release for appraisal services. Subsequently, each Form ROW-A-3, Fee Appraiser Work Order, will be made a part of the parent contract. The contract provides that the appraiser:
- agrees not to sublet or transfer any of the appraisal work assigned under the provisions of the contract,
- warrants that he/she has not employed or retained any company or person other than a bona fide employee working solely for the appraiser to solicit or secure the contract, and
- has not paid or agreed to pay any fee, commission, percentage, brokerage fee, gifts, or any other consideration to any company or person other than a bona fide employee working solely for the appraiser, contingent upon or resulting from the award or making of the contract.
For breach or violation of this warranty, the State retains the right to annul the contract without liability.
Particular attention is called to the provision that the appraiser will use all proper techniques, methods, and analyses applicable “ . . . in arriving at his/her estimate of value” in conformance with all appraisal industry and applicable Federal and State regulations and standards.
NOTE: Corrections or additions to the appraisal report due to overlooked items of value in order to comply with contract specifications will be accomplished at no additional fee.
As provided in the contract as executed on Form ROW-A-2, project assignments will be accomplished by execution of the Form ROW-A-3, Fee Appraiser Work Order.
Particular attention is called to the following provision in Form ROW-A-3 concerning conflict of personal interest:
“This work order is in accordance with the provisions of the Statewide contract, Form ROW-A-2, executed under date XXXXX between the State and the Appraiser, and by signing the Work Order Agreement certifies that neither he nor she nor any employee in his/her service has, directly or indirectly, any financial or personal interest in or to any tract, piece or parcel of land included within the limits of the subject parcel or project except as follows: ________ ; and, further, that neither he nor she nor any employee in his/her service, has, directly or indirectly, any financial or personal interest, other than his/her employment or retention by the State, in any contract or subcontract in connection with such project. The Appraiser, by his/her execution, further certifies that should he/she or any employee in his/her service acquire in the future, prior to completion of appraisal services, any such interest in property within the project or in any contract or subcontract in connection with such project, he/she will immediately notify the State of such interest or interest.”
The contract is approved on the basis that the appraiser will not be assigned to appraise any parcel in which he/she may hold or subsequently acquire an interest. Furthermore, it is intended that the appraiser should not be assigned any parcel wherein his/her valuation might possibly be influenced by his/her personal interest in other parcels. The appraiser must certify whether he/she, or his/her employees, has any financial or personal interest in any property within the limits of the project. The appraiser is required to give similar notice to TxDOT if such interest is acquired after the date of the contract. Due diligence should be exercised in making appraisal assignments in order to avoid the possibility of conflicting personal interests.
Upon receipt of an approved contract and after project release, the District Review Appraiser prepares Form ROW-A-3, Fee Appraiser Work Order, containing a Child Support Affidavit (Form ROW-A-3, page 4) and a Debarment Certification (Form ROW-A-3, page 5) in ROWIS. The District Engineer’s designee will then approve Form ROW-A-3 through ROWIS.
The District Right of Way Section will retain one signed copy of the approved Form ROW-A-3, send one signed copy to the appraiser, and send one signed original to ROW Division for accounting purposes and payment verification. ROW Division is the official office of permanent record for all real property transactions generated in the right of way process.
Should the ROW Division Director not approve the fee appraiser’s application or contract, justification will be submitted to the District and the appraiser. The appraiser may then avail him/herself of the administrative appeal process.
Anchor: #i1005013Fees for Appraisers
Standardizing and improving statewide consistency of appropriate fees for fee appraiser services is a vital factor in improving working relationships with fee appraisers. The current hourly rate for appraisals, court presentation, and court testimony is $150.00. A Fee Schedule System is currently being developed as part of Right of Way Acquisition Provider Services (ROWAPS) in conjunction with Contract Services Office policies and procedures. The Fee Schedule System will be incorporated into this manual upon its completion.
The District will estimate the appraisal hours to be paid for the appraisal of each parcel before requesting an estimate from the appraiser or making an assignment.
If the hourly estimate exceeds the hours shown in the Appraisal Hour Guide below, justification must be made to the District Appraisal Assignment Team, appointed by the District Right of Way Administrator. This Appraisal Hour Guide will continue to be used until the Fee Schedule System is developed.
|
Property Type |
Type of Acquisition |
Vacant Range |
Improved Range |
|---|---|---|---|
|
Farm/Ranch Acreage |
Whole |
7 - 35 hours |
10 - 50 hours |
|
Farm/Ranch Acreage |
Partial |
10 - 40 hours |
15 - 60 hours |
|
Residential |
Whole |
7 - 35 hours |
10 - 50 hours |
|
Residential |
Partial |
10 - 40 hours |
15 - 60 hours |
|
Industrial |
Whole |
10 - 40 hours |
15 - 80 hours |
|
Industrial |
Partial |
10 - 50 hours |
15 - 100 hours |
|
Commercial |
Whole |
10 - 40 hours |
15 - 80 hours |
|
Commercial |
Partial |
10 - 50 hours |
15 - 100 hours |
|
Multi-use, Commercial, Industrial, and Special Use: |
Whole |
10 - 80 hours |
15 - 140 hours |
|
Multi-use, Commercial, Industrial, and Special Use: |
Partial |
10 - 100 hours |
15 – 200 hours |
|
Easement |
- |
8 - 25 hours |
10 - 40 hours |
Where an easement and a parcel are out of the same parent tract, they will be included in the same estimate/assignment. The fee is to be determined and documented on the parcel assignment for each appraiser (Form ROW-A-3, Fee Appraiser Work Order) by the District Appraisal Assignment Team. Payment of fees is accomplished using Form ROW-A-15, Payment Request, generated through ROWIS. A copy of the appraisal report must accompany the payment request, or it will not be processed by ROW Division.
The District will approve all individual parcel appraisal fees of $10,000 or less, or for initial or secondary appraisals. The District Review Appraiser must submit the ROWIS-generated Form ROW-A-4, Fee Appraiser Assignment Authorization, for fees more than $10,000.00, and for a third or additional appraisal assignment through ROWIS with hard copy to the ROW Division. In all other cases, multiple parcels and fees may be assigned to one fee appraiser on a single Fee Appraiser Assignment Authorization.
The District Review Appraiser prepares the Form ROW-A-4, Fee Appraisal Assignment Authorization in ROWIS by:
- assigning the task to the fee appraiser to the appropriate parcel or parcels;
- entering the following information into ROWIS regarding
the acquisition interest:
- acquisition interest type (fee simple, channel/drainage easement, etc.)
- property usage type (agricultural, residential, etc.)
- acquisition type (whole, partial, access rights only)
- bisection type (Category I, Category II, etc.)
- access rights type (denied, permitted, etc.)
- county
- area of part acquired
- area of remainder (if applicable)
- legal description
- temporary easement dates (if applicable)
- creating the ROW-A-3,
Fee Appraiser Work Order, by entering in ROWIS for each assigned parcel
the:
- appraisal format (Form ROW-A-5, Real Estate Appraisal Report or Form ROW-A-6, Real Estate Appraisal Report), and
- estimated hours for site inspection, report preparation, and market analysis.
After the above information in entered into ROWIS, and the work order is saved, ROWIS will automatically calculate the hours and multiply the determined hours by $150.00 to arrive at the authorized fee. The ROW-A-4 can then be printed and submitted to the District Appraisal Assignment Team.
The District Review Appraiser matches the qualifications of the recommended Fee Appraiser for the required appraisal and then submits a completed Form ROW-A-4 to the District Appraisal Assignment Team by completing Form ROW-A-3 through ROWIS and printing the form. The District Review Appraiser must take into account HUB/DBE requirements.
The District Appraisal Assignment Team will review the completed Form ROW-A-4 and discuss the recommendations made by the District Review Appraiser. It will then submit any request for approval of an individual parcel appraisal fee exceeding $10,000, or a third or additional appraisal on a parcel, to the ROW Division Director, or designee, in writing or by electronic mail.
The ROW Division Director or designee will approve or disapprove the District’s recommendation in ROWIS, and notify the District. ROW Division may request additional information or justification, as necessary.
It is emphasized that the preparation and execution of Form ROW-A-3, Fee Appraiser Work Order, must precede any work by the appraiser on the parcel involved; otherwise, the appraiser will not be entitled to payment. When this form is created in ROWIS, the due date for completion of the assignment defaults to 60 days. Before execution of the work order, the District may alter this date. Since this period may be different for various parcel assignments, appropriate time should be allowed. The form will officially become an attachment to the appraiser’s contract upon execution.
In those isolated cases where, as the work progresses, it is found that the authorized hours initially determined is not equitable to the State or the appraiser(s), an amendment to the original work order will be created in ROWIS and executed by both the District and the appraiser. This will establish a revised fee and document the reason(s) requiring the revisions. Upon execution, the amendment becomes a permanent part of the work order.
The appraiser will be entitled to the prescribed fee based on the number of hours worked. If eminent domain proceedings are necessary and an appraiser previously submitting a report is authorized to prepare for testimony, any work done in revising or preparing a new appraisal to reflect current values or in consulting with the State’s legal staff is considered necessary to the court appearance. The fee paid shall be the hourly rate thereof as fixed for his appearance in court. If an appraiser is authorized to prepare for testimony, payment based on this hourly rate shall be due even though the parcel is subsequently negotiated and court action avoided.
After review of the report by the District (and ROW Division, if applicable) the appraiser’s acceptability for witness purposes will be determined. If acceptable, he/she will be authorized to prepare for testimony at the hourly rate.
If an appraiser who has not previously appraised the parcel is proposed for eminent domain proceedings, he/she will execute a work order and prepare a report in the usual manner.
There will be no limitation placed on the number of hours an appraiser can work per day. However, the District should maintain adequate documentation to assure that services are rendered as charged.
Upon receipt of an acceptable appraisal report, and its accompanying invoice, the District shall:
- date-stamp the report, (which starts the 30-day prompt payment process),
- enter its contents into ROWIS as appropriate, and
- generate the payment request through ROWIS.
The payment request will then be processed by the ROW Division’s Resource Management Section.
NOTE: The District should make every effort to complete the appraisal review and submit the payment request to ROW Division in a timely manner, so that payment will be received by the appraiser within the 30-day 4 prompt payment period.
Should the appraisal report be deemed unacceptable by the District, the District will document the deficiencies and return the report and its accompanying invoice to the appraiser, requesting him/her to rectify the deficiencies. The appraiser shall make the appropriate corrections and resubmit the report with a new invoice.
Upon receipt of the corrected report, the District shall date-stamp the report, restarting the 30-day prompt payment process.
In the event of an address or telephone change for an appraiser, the District using that appraiser will send such change notification by mail or electronically to the Right of Way Acquisition Section, Appraisal Branch.
Easements, when appraised with a parent tract (example: parcel 12, 12E), will only need an additional two to six hours. More hours will apply only if appraising an easement by itself.
A flowchart detailing Appraisal Fee Determination Guidelines is available.