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Section 3: Initial Procedures for all Dispositions

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Overview

The Right of Way Division (ROW) is available to assist with all dispositions of real property no longer needed for state highway purposes. Specifically, ROW Division Headquarters will:

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  • Search the Specifically Designated Nationals and Blocked Persons List, maintained by the Treasury Department through the Office of Foreign Assets Control (OFAC), to ensure neither the potential purchaser nor any of its partners, members, managers, officers, or directors, are parties TxDOT would be prohibited from doing business with.
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  • Conduct a review of any real property acquired through a condemnation proceeding filed on or after September 1, 2011, to see if the property may be subject to extended repurchase rights afforded under the Texas Property Code, Sections 21.101-21.103.
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  • For any real property acquired by advance acquisition, pursuant to which Texas Transportation Code 202.112 applies, first offer any such surplus property for sale to the person from whom the Commission acquired the property for the lesser of 1) the price the commission paid the person to acquire the property; or 2) the fair market value of the property at the time it is offered for sale, taking into account any damage to the property. This offer must be made within 180 days of discovery of the applicability of Texas Transportation Code 202.112.
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  • Subject to the caveats cited immediately above, offer such real property for sale pursuant to Texas Transportation Code 202.021(b) and (c).
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  • For all dispositions below fair market value and all dispositions of Interstate project real estate at fair market value in which federal funds participated in any phase of the project, obtain approval of the transaction from the FHWA as required by 23 CFR 710.409. Under 23 CFR 710.403, such dispositions are subject to a Stewardship & Oversight Agreement between TxDOT and FHWA, which establishes which approvals TxDOT may make on behalf of FHWA, as well as those which FHWA may not delegate to TxDOT. Some types of dispositions have been pre-approved under 23 CFR 710.409, such as potential use for parkland, transfers to local governments for continued public road purposes subject to reversion, and disposal of non-right of way which was not federally funded.
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  • Prepare and process the minute order requesting Commission action.
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  • After the minute order is passed, prepare and route an appropriate conveyance document for execution.
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  • Notify the purchaser by letter that the minute order has been approved, the conveyance instrument has been fully executed, and the buyer will have 60 days from receipt of letter to close transaction. The letter should also state that if the transaction does not close within 60 days at the fault of the state, the buyer shall not lose the right to purchase the property nor any deposit placed on the property.
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  • An escrow company may be used for closing at the cost of the buyer. TxDOT will not be responsible for any expenses in connection with the use of an escrow company. TxDOT forwards executed conveyance instruments to an escrow company or follows agreed upon escrow instructions. At closing, escrow company will record the document. TxDOT shall maintain the right to request a return of the executed deeds at any time before closing.
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  • If there is no escrow company used, then after FIN notifies ROW Division Headquarters that the funds have been deposited, ROW will send fully executed documents to the TxDOT contact for delivery to the purchaser.

A party interested in purchasing TxDOT real estate may be requested to send a letter or email to TxDOT that includes identifying information including, but not limited to:

ROW reviews the conveyance document(s) to the state to determine what interest, if any, the state owns in the property and whether the conveyance document contains a reversionary clause.

The District in which the requested tract is situated determines whether there is any current or future need for the tract for a highway purpose.

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  • Unless a satisfactory survey or other legally sufficient property description already exists, TxDOT will require a survey of the tract and a signed and sealed legal description by a registered Professional Land Surveyor (RPLS). The field notes should include a preamble citing the original conveyance(s) to the state with the recording information. TxDOT maintains the right to order and coordinate the survey used for a particular transaction.
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  • TxDOT will require an appraisal by a department certified appraiser. TxDOT maintains the right to order and coordinate the appraisal used for a particular transaction. The appraisal is merely a component of determining fair market value of the real property and is not necessarily the dispositive factor in the determination.
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  • Pursuant to Texas Transportation Code 202.029, if the State disposes of real property that is being used by a public utility or common carrier having a right of eminent domain for right-of-way and easement purposes, the sale, conveyance, or surrender of possession of the real property is subject to the right and continued use of the public utility or common carrier. The State will incur no utility relocation expenses as a result of any real property disposition.
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  • The transaction is subject to all matters of public record and all easements, leases, and licenses, whether publicly recorded or not.
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  • Transactions are also subject to approval by TxDOT’s Executive Director, the Commission, and, if the value of the right of way interest equals $100,000 or more, the Attorney General’s office, the Governor, and the Secretary of State.
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  • The purchaser will provide a written agreement to purchase the property for the agreed upon value plus a service fee of 2% with a minimum of $300 and a maximum of $1,600 and any other expenses incurred by the State in furtherance of the sale, if any. A GE is not subject to the service fee.
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Environmental Review

All disposal actions and ROW use agreements, including leasing actions are subject to the environmental review requirements set forth in 23 CFR 771.

Under 23 CFR 771.117(d)(6) such dispositions, if they do not involve a significant adverse impact, may be done subject to a categorical exclusion (CE). The CE determination is a fairly simple process. A review for potential significant adverse impacts should be done by the District.

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