Chapter 2: Right of Way Agreements

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Section 1: Types of Right of Way Agreements

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An agreement must be executed by TxDOT and the applicable LPA on all projects with state reimbursement. The agreement will give details about the project and will specify which party is responsible for the acquisition of the right of way. In any case, the purchase of right of way on any designated highway on the state highway system must be in accordance with the Uniform Act if federal funds are used in any phase of the project, including construction.

The standard type of Right of Way Agreement is the Agreement to Contribute Right of Way Funds (Fixed Price). Under the standard agreement, the LPA's financial contribution is a fixed amount. That amount can be adjusted only under certain circumstances. Please see 43 TAC 15.52(3)(A)(i) for those circumstances. If the project comes in under budget, the LPA does not receive a refund of the difference.

The other type of agreement is the Agreement for Right of Way Procurement. Under this kind of agreement, the LPA contributes a specified percentage of the actual right of way costs, capped at ten percent. This agreement may be used only if approved by TxDOT's Executive Director.

Regardless of the type of agreement used, the acquiring agency is responsible for all aspects of the acquisition process as detailed in the agreement between the parties.

Through these agreements, TxDOT will authorize and request the LPA to proceed with ROW acquisition and agrees to reimburse the LPA for its share of costs incurred according to the agreement’s provisions. The agreement dictates that the LPA has the responsibility to acquire all needed right of way and to obtain acceptable title in the name of the State of Texas.

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