Principles of Land Acquisition

8/18/2019 Principles of Land Acquisition

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Welcome to the International Right of WayAssociation

Course 100Principles of

Land Acquisition

100-PPT – Revision 2 – 04.15.2013.USA


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IntroductionsWho we are…

What we do…Where we do it…

How long we’ve been doing it…

Our goals for the course...


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Objectives (1) At the conclusion of the four days,you will be able to...

• efine real !ro!erty law terms and conce!ts. A!!lythe terms and conce!ts to right of way ac"uisition

• iscuss the effects of a !ublic !ro#ect on the

environment. Recogni$e some of the ma#or %.&. environmental acts. '(!lain the ty!es of environmental studies


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Objectives (2)

At the conclusion of the four days,you will be able to...

) escribe and demonstrate the three viewconce!t of engineering !lans. %nderstand and

discuss the significance of !ro!erty

descri!tions and the difference ty!es used

) emonstrate a basic understanding of the

valuation !rocess and the role of the a!!raiser

in the ac"uisition !rocess


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Objectives (3) At the conclusion of the four days,you will be able to...

) iscuss right of way negotiation, including itsvarious com!onents from !re!aration to closing

) '(!ress a basic understanding of the federal

laws related to the relocation of residential andbusiness occu!ants

) '(!ress a basic understanding of !ro!erty

management conce!ts


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ouse!eepin"


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#c$edule%a& One and %a& 'o (1)

*+ - *+ Introductions, 'tc.

*+ - /0+ 1ro!erty 2aw 3once!ts

/+ - 4+45 'nvironmental 3oncerns

*+/5 - /0+ 1ro!erty escri!tions

/+ - 4+45 A!!raisal


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#c$edule%a& '$ree and %a& our (2)

*+ - /+/5 A!!raisal

/+ - /0+ 6egotiation

/+ - 4+45 6egotiation

*+/5 - /0+ Relocation Assistance/+ - 0+45 1ro!erty 7anagement

+ - 5+ '(am


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Propert& La Concepts


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Objectives 1ro!erty 2aw 3once!ts

• efine real !ro!erty law termsand conce!ts.

• A!!ly the terms and conce!ts to

right of way ac"uisition


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'&pes of Las

Civil law based on written codes or laws

Common law evolved from early

court decisions


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*eal +state

Real estate is the !hysical land andthe ob#ects that are !ermanently

affi(ed to the land.


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*eal Propert& (1)

Real property is all the rights,

interests and benefits inherent

in the ownershi! of the real estate.

It is the bundle of rights .


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*eal Propert& (2)

Real property is all

the rights, interestsand benefits

inherent in the

ownershi! of thereal estate. It is the

bundle of rights .


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Personal Propert&and i,tures

Personal property is the items that arenot affi(ed to the real estate.

Fixtures are items that were once !ersonal!ro!erty but have since been !ermanently

attached to the real estate.


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'&pes of Oners$ipOwners in Severalty Concurrent Ownerships

8oint 9enancy

9enancy by the 'ntirety

9enancy in 3ommon

3ommunity 1ro!erty


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Contract (1)

A contract is an agreement

between !arties, creating anobligation for which the law

!rovides a remedy for breach.


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Contract (2)

• 7utual consent or agreement

• 3om!etent !arties

• 2awful consideration

• 2awful sub#ect matter


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+states

:ee sim!le estate

2ife estate

2ease interests

;leased fee and leasehold<

'asements


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+ase-ent

An easement is a non-!ossessory

interest one has in the!ro!erty of another for a

s!ecific !ur!ose.


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+ase-ent Appurtenant Easement Appurtenant

is an easement for thebenefit of another real

estate !arcel.

=Runs with the land.>


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+ase-ent In .ross (1)

Easement In Gross

benefits a !ersonor entity, ratherthan another realestate !arcel.

It may be !ersonal

or commercial.


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'ransfer of 'itleeed or ?rant

escent and istribution;intestate succession<

evise ;will<

'minent omainOccu!ancy@Adverse 1ossession


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/sual %escent/. &urviving s!ouse and children

0. rothers and sisters. 1arents

4. Aunts and uncles and nieces and ne!hews

5. ?rand!arents

B. 3ousins

C. &econd cousins, etc.

*. 'scheat


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Ot$er *i"$ts

Rights of Way

1rofits a 1rendre

2icenses@1ermits


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+nviron-ental Concerns


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Objectives 'nvironmental 3oncerns

) iscuss the effects of a !ublic !ro#ect

on the environment

) Recogni$e some of the ma#or %.&.

environmental acts

) '(!lain the ty!es of environmental

studies and what each ty!e ho!es

to achieve


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+nviron-ent

Environment is the combination

of conditions that affect and

influence the growth, develo!ment

and survival of living things.


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+nviron-ental Le"islation(1)

Rivers and Harbors Act

3lean Air Act

6ational Historic 1reservation Act

6ational 'nvironmental 1olicy Act

9he 3lean Air Act

:ederal Water 1ollution

3ontrol Act Amendments

'ndangered &!ecies Act


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+nviron-ental Le"islation(2)

&afe rinDing Water Act

9o(ic &ubstance 3ontrol Act

Resource 3onservation and Recovery Act

:ederal Water 1ollution 3ontrol Act

3om!rehensive 'nvironmental Res!onse,3om!ensation and 2iability Act

&u!erfund Amendments and Reauthori$ation Act

3lean Water Act


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+nviron-ental *evie

Assess-ent Processes

9he environmental review is a review and

decision !rocess for evaluating the im!actthat actions will have on the environment.

An environmental assessment is an action to

determine and manage risDs associated with

the ac"uisition of !ro!erty that may

be environmentally im!acted.


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%a& One *ecap 9oday we...

) efined real !ro!erty law terms and conce!ts.

A!!lied the terms and conce!ts to right of wayac"uisition

) iscussed the effects of a !ublic !ro#ect on the

environment. Recogni$ed some of the ma#or %.&.environmental acts. '(!lained the ty!es of

environmental studies


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%a& 'o

We will...

) escribe and demonstrate the three view conce!t of

engineering !lans. %nderstand and discuss the

significance of !ro!erty descri!tions and the

difference ty!es used

) &tart to demonstrate a basic understanding of the

valuation !rocess and the role of the a!!raiser in

the ac"uisition !rocess


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Propert& %escriptions


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Objectives 1ro!erty escri!tions

) escribe and demonstrate the three view conce!t of engineering !lans.

) %nderstand and discuss the

significanceof !ro!erty descri!tions and the

difference ty!es used.


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'$ree ie Concept

1lan Eiew

1rofile Eiew

3ross section Eiew


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Plan ie(1)


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Plan ie(2)


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Profile ie


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Cross #ection ie


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ason and %i,on


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Public Land #urve& #&ste- (1)


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Public Land #urve& #&ste-(4)


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etes and 5ounds


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5earin"s2 1

4 3


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Lot and 5loc!


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Centerline


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Point


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Appraisal


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Objectives A!!raisal

) emonstrate a basic

understanding

of the valuation !rocess and the role

of the a!!raiser in the ac"uisition

!rocess


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AppraisalAn appraisal is the act or !rocess of develo!ing

an o!inion of value. An o!inion of value.

An appraisal is a written statement … setting

forth an o!inion of value … su!!orted by the!resentation and analysis of relevant marDet

information.


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%6/6#6'6(actors t$at create value)

Deman! 9he desire or needfor real estate.

"tility! %sefulness.

Scarcity! 9he su!!ly of real estate

in relation to demand.#rans$era%ility! 9itle must be able to !ass.


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ar!et alue

&ar'et value is a ty!e of value,

stated as an o!inion, that !resumes

the transfer of a !ro!erty … as of

a certain date, under s!ecific

conditions ;… relationshi!, Dnowledge,

motivation, terms of sale, conditions of sale


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alue Principles(Principle of #ubstitution)

When several similar goodsor services are available,

the one with the lowest

!rice will attractthe greatest demand.


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alue Principles(Principle of #uppl& and %e-and)

9he !rice of a good or service

varies directly with demand and

inversely with su!!ly.


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alue Principles(Principle of Anticipation)

1resent value is created by the

e(!ectation of future benefits.


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alue Principles(Principle of Contribution)

9he value of a !articular com!onent

is measured by its contributory value

to the !ro!erty or the amount

of its absence detracts

from the whole.


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aluation ProcessAppraisal Problem Definition

Scope of Work

Data Collection and Analysis

Land Value Opinion

Three Approaches to Value

econciliation and

!inal Value Opinion

Defined Value Opinion eport


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i"$est and 5est /seThe reasonably probable and legal use that is

physically possible, appropriately supported,

and financially feasible, and that results

in the highest value.

• Physically possible?

• Legally perissible?

• !inancially feasible?

• "a#ially productive?


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'$ree Approac$es to alue

• $ost %pproach

• &ales $oparison

• 'ncoe $apitali(ation %pproach


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Cost Approac$

• )evelop a value opinion for the land

• *stiate the cost ne+ of the iproveent

• )educt depreciation

• %dd land value opinion to the depreciated

iproveent value


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#ales Co-parison Approac$

• esearch the ar-et for coparable data

• )evelop relevant units of coparison

• $opare the sales to the subect andadust for dissiilarities

• econcile the value indications into

a final value opinion


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%a& 'o 9oday we...

) escribed and demonstrated the three view

conce!t of engineering !lans. %nderstoodbetter and discussed the significance of !ro!erty

descri!tions and the difference

ty!es used.

) &tarted to demonstrate a basic understanding

of the valuation !rocess and the role of the

a!!raiser in the ac"uisition !rocess


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%a& '$ree 9oday, we will...

) :inish discussing the valuation !rocess

and the role of the a!!raiser in the

ac"uisition !rocess

) iscuss right of way negotiation,including its various com!onents

from !re!aration to closing


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aluation ProcessAppraisal Problem Definition

Scope of Work


Land Value Opinion


econciliation and

!inal Value Opinion



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Inco-e Capitali7ation Approac$The conversion of incoe into

value through a rate or a ratio.

• /ross rent ultipliers

• )irect capitali(ation


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Inco-e Capitali7ation Approac$.ross *ent ultipliers

/ross ent "ultiplier 0 &ale Price

/ross ent


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Inco-e Capitali7ation Approac$

• *stiate the subects annual potential gross incoe

• )eterine a vacancy and collection loss

• &ubtract the vacancy and collection loss fro the potentialgross incoe

• *stiate annual property e#penses and subtract thee#penses fro the effective gross incoe to arriveat the net operating incoe

• )evelop a capitali(ation rate

• $onvert the net operating incoe into value


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Inco-e Capitali7ation Approac$%irect Capitali7ation

alue 0 et perating 'ncoe or o 0 '

$apitali(ation ate o


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aluation Process

Appraisal Problem Definition

Scope of Work


Land Value Opinion


econciliation and

!inal Value Opinion



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Partial Acquisitions (1)

(ar)er parcel is the total !ro!ertybefore the taDing.

) 3ontiguity) 9itle

) %se

*alue o$ the part ta'en is determined by

multi!lying the "uantity taDen timesthe before unit value of the item


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Dama)es to the remainer property re!resent

the loss in value to the remainder !ro!ertyas a result of a !artial ac"uisition

+ene$its to the remainer property re!resent

the increase in value to the remainder

!ro!erty as a result of a !artial ac"uisition


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Feeral ,+e$ore an A$ter- Rule

is thedifference between the value before the

ac"uisition and the value after the ac"uisition

State ,Summation- Rule

is the value of the !art

taDen !lus ;damages to the remainder !ro!erty

minus benefits to the remainder !ro!ertyFthe damages minus the benefits cannotbe less than $ero dollarsG<


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8e"otiation


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Objectives 6egotiation

iscuss right of way negotiation,

including its various com!onents

from !re!aration to closing


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8e"otiation

… the !rocess by which twoor more !eo!le resolve differences to

reach a mutually acce!table agreement.


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Conditions 8ecessar&666

Issues must be negotiable

1arties must be willing to negotiate

1arties must trust each other


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'rust

1lacing confidence in another,

based on that !erson’s character,ability, strength or truthfulness


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*oles

Agency

1ro!erty Owner

9a(!ayer@Rate!ayer

Ac"uisition 9eam

1roblem &olver

:acilitator

3loser

Other


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Inte"rative

=Win-Win>

7utually beneficial outcomes

In"uiry

3ollaborative


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5ar"ainin"=Win-2ose>

=ero-&um>

Advocates !ositions

3om!romise


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Intra9a"enc&

Intra-organi$ation


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C$aracteristics (1)

3redibility

'(!ertness

9rustworthiness

1ower@ynamism


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Poer

2egitimate Reward

3oercive Reverent

3harismatic '(!ertise

&ituation Information


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C$aracteristics (2)

3ourage

'm!athy

Integrity@'thics

1atience


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'$e unnel 'ec$nique

I6 Infor-ation .ettin"

II6 Infor-ation .ivin"

III6 Proble- Census

I6 Proble- #olvin"

6 Closin"

I6 Proble- #olvin"


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A Plan

Analy$e

evelo!

O!timi$e

Incor!orate

=Rules>

A96A


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%a& '$ree9oday we...

)

:inished discussing the valuation

!rocess and the role of the a!!raiser


) iscussed right of way negotiation,including its various com!onents from

!re!aration to closing


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%a& our9oday, we will...

) '(!ress a basic understanding of the

federal laws related to the relocationof residential and business occu!ants

) '(!ress a basic understanding of

!ro!erty management conce!ts

) Review the course and taDe an e(am


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*elocation Assistance


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Objectives Relocation Assistance

) '(!ress a basic understanding of the

federal laws related to the relocation

of residential and business occu!ants


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/nifor- Act Objectives ) Advisory assistance in locating

re!lacement housing and re!lacementbusiness sites

) :inancial assistance to !ay the cost of

relocating !ersonal !ro!erty and to hel!those dis!laced to secure com!arable

re!lacement housing


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*esidential *elocation Assistance


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Advisor& AssistanceInterview

Information

Ins!ection

9rans!ortation

9imely written notice


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ovin" +,penses

&chedule 7ethod

Actual 3ost

3ombination


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Pa&-ent Options(1)


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Pa&-ent Options(2)


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Pa&-ent Options (3)


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Pa&-ent Options (4)


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Pa&-ent Options (:)


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Pa&-ent Options (;)


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5usiness *elocation Assistance


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Advisor& Assistance

Interview

Information

Assistance

9imely written notice


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5usiness *elocation Assistance


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Propert& ana"e-ent


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Objectives 1ro!erty 7anagement

) '(!ress a basic understandingof !ro!erty management conce!ts


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Propert& ana"e-ent

… the !rocess of maintaining and

creating value in real !ro!erty

consistent with the owner’s ob#ectives.


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Asset ana"e-ent

Involves…

:iscal 7anagement

1hysical 7anagement

Administrative 7anagement


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Propert&


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Inventories

3om!lete 1ro!erty 2isting

?eneral Information

1ro!erty 3lassifications


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Objectives (1) At this !oint, you are able to...

) efine real !ro!erty law terms and conce!ts.

A!!ly the terms and conce!ts to right of wayac"uisition

) iscuss the effects of a !ublic !ro#ect on the

environment. Recogni$e some of the ma#or %.&.

environmental acts. '(!lain the ty!es of

environmental studies


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) escribe and demonstrate the three viewconce!t of engineering !lans. %nderstand and

discuss the significance of !ro!erty

descri!tions and the difference ty!es used

) emonstrate a basic understanding of thevaluation !rocess and the role of the a!!raiser



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) iscuss right of way negotiation, including itsvarious com!onents from !re!aration to closing

) '(!ress a basic understanding of the federal

laws related to the relocation of residential and

business occu!ants ) '(!ress a basic understanding of !ro!erty

management conce!ts


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Thank you!

Principles of Land Acquisition

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