When purchasing a right of way, is it acceptable if the price is within a certain percent of the appraisal value? What if the price exceeds the appraisal value by a great amount?
A. When purchasing a right of way it is not acceptable if the price is within a percent of the appraisal value. Subpart B of 49 CFR Part 24 is the subpart dealing with real property acquisition. The offer amount shall be no less than the approved appraisal of fair market value, taking into account the value of allowable damages or benefits to any remaining property. The purchase price may exceed the amount offered as just compensation when reasonable efforts to negotiate an agreement at the amount have failed and an authorized agency official approves such administrative settlement as being reasonable, prudent, and in the public interest. When there is Federal participation in the acquisition costs, the agency must document its files with a written justification to indicate that available information supports such a settlement. Chapter II in FTA’s Grant Management Guidelines, Circular 5010.1C requires FTA’s prior concurrence when the settlement is $50,000 higher than the offer. Therefo
A. When purchasing a right of way it is not acceptable if the price is within a percent of the appraisal value. The offer amount can be no less than the approved appraisal of fair market value, taking into account the value of allowable damages or benefits to any remaining property. The purchase price may exceed the amount offered as just compensation when reasonable efforts to negotiate an agreement at the amount have failed and an authorized agency official approves such administrative settlement as being reasonable, prudent, and in the public interest. When there is Federal participation in the acquisition costs, the agency must document its files with a written justification to indicate that available information supports such a settlement. Chapter IV in FTA’s Grant Management Requirements, Circular 5010.1D, requires FTA’s prior concurrence when the settlement is $50,000 higher than the offer. Therefore, for Federal participation in the increase, the transit grantee would have to s
Related Questions
- When purchasing a right of way, is it acceptable if the price is within a certain percent of the appraisal value? What if the price exceeds the appraisal value by a great amount?
- What is the difference between a propertys appraisal value and purchase price?
- Is an appraisal acceptable in calculating the RC value?
