Section 3: Initial Procedures for all Dispositions
Anchor: #i1003526Overview
The Property Management Section (PRM) of the Right of Way Division (ROW Division) is available to assist with all dispositions of surplus real property.
District personnel should inform those interested in acquiring surplus right of way that TxDOT will only consider the request to sell, exchange, or release any right of way interest owned by the state because any proposed transaction requires approval by the Commission and TxDOT administration.
The District notifies the requesting party to send a letter to the District presenting their proposal that should include:
- name, address, telephone number, email address, fax number, and authorized contacts
- letter-size sketch showing the TxDOT property and all abutting landowners
- letter-size location map of the general area
- copy of instrument(s) conveying the right of way to the state.
The District reviews the appropriate right of way map to locate TxDOT’s property. The District also reviews the conveyance document(s) to the state to determine what interest, if any, that the state owns in the property and whether the conveyance document contains a reversionary clause. The District should determine whether the state owns a right of way interest before ordering a survey or appraisal. The District also determines whether the property is needed for a state highway purpose.
The District sends the requesting party a letter explaining the process and informing them that they will be responsible for all expenses, including appraisal, survey and service fees. If applicable, the service fee is $300 or 2% of the sales price up to a maximum of $1,600.
- A registered Professional Land Surveyor (RPLS) will survey the surplus right of way and prepare a signed and sealed legal description.The field notes should include a preamble citing the original conveyance(s) to the state with the recording information.
- The surplus right of way interest will be appraised using a state certified appraiser from TxDOT’s current list. Only TxDOT approved appraisal forms are acceptable.
- The landowner(s) will provide a current licensed attorney’s opinion, based on an examination of the deed records, identifying all of the landowner(s) abutting or underlying the surplus right of way interest.
- An appropriate conveyance document will be provided by the state.
- All existing utilities, if any, will remain in place or will be adjusted at no expense to the state.
- The transaction is subject to all matters of public record and all easements, leases, and licenses affecting the property.
- The transaction is subject to approval by TxDOT, the Commission, and, if the value of the surplus right of way interest exceeds $10,000, the Attorney General’s office, the Governor, and the Secretary of State.
- The landowner(s) will provide a letter agreeing to purchase the property for the appraised value plus the service fee, if applicable. An LPA does not pay a service fee.
After the ROW Division receives the District’s submission requesting the disposition of the surplus right of way interest, the ROW Division will:
- notify the District to have the surplus right of way interest appraised. The requesting party will contract with and pay the appraiser directly. The District approves the recommended value for the surplus right of way without review from the ROW Division, and sends a copy of the approved value form (ROW-A-10S) to the ROW Division.
- prepare and process the minute order requesting Commission action
- after the minute order is passed, prepare and route an appropriate conveyance document for signatures
- notify the purchaser by letter to send the funds to the Finance Division (FIN Division) for deposit into the state highway fund
- after the FIN Division notifies ROW Division that the funds have been deposited, send fully executed document to District for recording and delivery to the purchaser.