Welcome to the

International Right of Way

Association
Course 100
Principles of
Land Acquisition

100PPTRevision204.15.2013.USA

Introductions
Who we are
What we do
Where we do it
How long weve been doing it
Our goals for the course...
2

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

Define real property law terms and concepts. Apply

the terms and concepts to right of way acquisition

Discuss the effects of a public project on the

environment. Recognize some of the major U.S.

environmental acts. Explain the types of
environmental studies
3

Objectives (2)
At the conclusion of the four days,
you will be able to...
Describe and demonstrate the three view
concept of engineering plans. Understand and
discuss the significance of property
descriptions and the difference types used
Demonstrate a basic understanding of the
valuation process and the role of the appraiser
in the acquisition process
4

Objectives (3)
At the conclusion of the four days,
you will be able to...
Discuss right of way negotiation, including its
various components from preparation to closing
Express a basic understanding of the federal
laws related to the relocation of residential and
business occupants
Express a basic understanding of property
management concepts
5

Housekeeping

Schedule
Day One and Day Two

(1)

8:00 - 8:30

Introductions, Etc.

8:30 - 12:00

Property Law Concepts

1:00 - 4:45

Environmental Concerns

8:15 - 12:00

Property Descriptions

1:00 - 4:45

Appraisal

Schedule
Day Three and Day Four

(2)

8:30 - 10:15

Appraisal

10:30 - 12:00

Negotiation

1:00 - 4:45

Negotiation

8:15 - 12:00

Relocation Assistance

1:00 - 2:45

Property Management

3:30 - 5:00

Exam

Property Law Concepts

Objectives
Property Law Concepts

Define real property law terms

and concepts.

Apply the terms and concepts to

right of way acquisition

10

Types of Laws
Civil law based on written codes or laws
Common law evolved from early
court decisions

11

Real Estate
Real estate is the physical land and
the objects that are permanently
affixed to the land.

12

Real Property (1)

Real property is all the rights,
interests and benefits inherent
in the ownership of the real estate.
It is the bundle of rights.

13

Real Property (2)

Real property is all
the rights, interests
and benefits
inherent in the
ownership of the
real estate. It is the
bundle of rights.
14

Personal Property
and Fixtures
Personal property is the items that are
not affixed to the real estate.
Fixtures are items that were once personal
property but have since been permanently
attached to the real estate.
15

Types of Ownership
Owners in Severalty

Concurrent Ownerships
Joint Tenancy
Tenancy by the Entirety
Tenancy in Common
Community Property

16

Contract (1)
A contract is an agreement
between parties, creating an
obligation for which the law
provides a remedy for breach.

17

Contract (2)

18

Mutual consent or agreement

Competent parties
Lawful consideration
Lawful subject matter

Estates
Fee simple estate
Life estate
Lease interests
(leased fee and leasehold)

Easements

19

Easement
An easement is a non-possessory
interest one has in the
property of another for a
specific purpose.

20

Easement Appurtenant
Easement Appurtenant
is an easement for the
benefit of another real
estate parcel.
Runs with the land.

21

Easement In Gross (1)

Easement In Gross
benefits a person
or entity, rather
than another real
estate parcel.
It may be personal
or commercial.
22

Transfer of Title
Deed or Grant
Descent and Distribution
(intestate succession)
Devise (will)
Eminent Domain
Occupancy/Adverse Possession
23

Usual Descent
1.
2.
3.
4.
5.
6.
7.
8.
24

Surviving spouse and children

Brothers and sisters
Parents
Aunts and uncles and nieces and nephews
Grandparents
Cousins
Second cousins, etc.
Escheat

Other Rights
Rights of Way
Profits a Prendre
Licenses/Permits

25

Environmental Concerns

26

Objectives
Environmental Concerns
Discuss the effects of a public project
on the environment
Recognize some of the major U.S.
environmental acts

27

Explain the types of environmental

studies and what each type hopes
to achieve

Environment
Environment is the combination
of conditions that affect and
influence the growth, development
and survival of living things.

28

Environmental Legislation (1)

Rivers and Harbors Act
Clean Air Act
National Historic Preservation Act
National Environmental Policy Act
The Clean Air Act
Federal Water Pollution
Control Act Amendments
Endangered Species Act
29

Environmental Legislation (2)

Safe Drinking Water Act
Toxic Substance Control Act
Resource Conservation and Recovery Act
Federal Water Pollution Control Act
Comprehensive Environmental Response,
Compensation and Liability Act
Superfund Amendments and Reauthorization Act
Clean Water Act
30

Environmental Review
Assessment Processes
The environmental review is a review and
decision process for evaluating the impact
that actions will have on the environment.

31

An environmental assessment is an action to

determine and manage risks associated with
the acquisition of property that may
be environmentally impacted.

Day One Recap

Today we...
Defined real property law terms and concepts.
Applied the terms and concepts to right of way
acquisition
Discussed the effects of a public project on the
environment. Recognized some of the major U.S.
environmental acts. Explained the types of
environmental studies
32

Day Two
We will...
Describe and demonstrate the three view concept of
engineering plans. Understand and discuss the
significance of property descriptions and the
difference types used
Start to demonstrate a basic understanding of the
valuation process and the role of the appraiser in
the acquisition process
33

Property Descriptions

34

Objectives
Property Descriptions
Describe and demonstrate the three
view concept of engineering plans.
Understand and discuss the
significance
of property descriptions and the
difference types used.
35

Three View Concept

Plan View
Profile View
Cross section View
36

Plan View (1)

37

Plan View (2)

38

Profile View

39

Cross Section View

40

Mason and Dixon

41

Public Land Survey System (1)

42

Public Land Survey System (2)

43

Public Land Survey System

44

(3)

Public Land Survey System (4)

45

Metes and Bounds

46

Bearings
2

4
47

Lot and Block

48

Centerline

49

Point

50

Appraisal

51

Objectives
Appraisal
Demonstrate a basic
understanding
of the valuation process and the role
of the appraiser in the acquisition
process
52

Appraisal
An appraisal is the act or process of developing
an opinion of value. An opinion of value.
An appraisal is a written statement setting
forth an opinion of value supported by the
presentation and analysis of relevant market
information.
53

D.U.S.T.
(Factors that create value)
Demand: The desire or need
for real estate.
Utility: Usefulness.
Scarcity: The supply of real estate
in relation to demand.
Transferability: Title must be able to pass.
54

Market Value
Market value is a type of value,
stated as an opinion, that presumes
the transfer of a property as of
a certain date, under specific
conditions ( relationship, knowledge,
motivation, terms of sale, conditions of sale).
55

Value Principles
(Principle of Substitution)

When several similar goods

or services are available,
the one with the lowest
price will attract
the greatest demand.
56

Value Principles
(Principle of Supply and Demand)

The price of a good or service

varies directly with demand and
inversely with supply.

57

Value Principles
(Principle of Anticipation)

Present value is created by the

expectation of future benefits.

58

Value Principles
(Principle of Contribution)

The value of a particular component

is measured by its contributory value
to the property or the amount
of its absence detracts
from the whole.

59

Valuation Process
Appraisal Problem Definition
Scope of Work
Data Collection and Analysis
Land Value Opinion
Three Approaches to Value
Reconciliation and
Final Value Opinion
Defined Value Opinion Report
60

Highest and Best Use

The reasonably probable and legal use that is
physically possible, appropriately supported,
and financially feasible, and that results
in the highest value.
Physically possible?
Legally permissible?
Financially feasible?
Maximally productive?
61

Three Approaches to Value

Cost Approach
Sales Comparison
Income Capitalization Approach

62

Cost Approach
Develop a value opinion for the land
Estimate the cost new of the improvement
Deduct depreciation
Add land value opinion to the depreciated
improvement value

63

Sales Comparison Approach

Research the market for comparable data
Develop relevant units of comparison
Compare the sales to the subject and
adjust for dissimilarities
Reconcile the value indications into
a final value opinion

64

Day Two
Today we...
Described and demonstrated the three view
concept of engineering plans. Understood
better and discussed the significance of property
descriptions and the difference
types used.
Started to demonstrate a basic understanding
of the valuation process and the role of the
appraiser in the acquisition process
65

Day Three
Today, we will...
Finish discussing the valuation process
and the role of the appraiser in the
acquisition process
Discuss right of way negotiation,
including its various components
from preparation to closing
66

Valuation Process
Appraisal Problem Definition
Scope of Work
Data Collection and Analysis
Land Value Opinion
Three Approaches to Value
Reconciliation and
Final Value Opinion
Defined Value Opinion Report
67

Income Capitalization Approach

The conversion of income into
value through a rate or a ratio.
Gross rent multipliers
Direct capitalization

68

Income Capitalization Approach

Gross Rent Multipliers
Gross Rent Multiplier = Sale Price
Gross Rent

69

Income Capitalization Approach

Estimate the subjects annual potential gross income
Determine a vacancy and collection loss
Subtract the vacancy and collection loss from the potential
gross income
Estimate annual property expenses and subtract the
expenses from the effective gross income to arrive
at the net operating income
Develop a capitalization rate
Convert the net operating income into value
70

Income Capitalization Approach

Direct Capitalization
Value = Net Operating Income
Capitalization Rate

71

or Vo = NOI
Ro

Valuation Process
Appraisal Problem Definition
Scope of Work
Data Collection and Analysis
Land Value Opinion
Three Approaches to Value
Reconciliation and
Final Value Opinion
Defined Value Opinion Report
72

Partial Acquisitions (1)

Larger parcel is the total property
before the taking.
Contiguity
Title
Use
Value of the part taken is determined by
multiplying the quantity taken times
the before unit value of the item
73

Partial Acquisitions (2)

Damages to the remainder property represent
the loss in value to the remainder property
as a result of a partial acquisition
Benefits to the remainder property represent
the increase in value to the remainder
property as a result of a partial acquisition
74

Partial Acquisitions (3)

Federal (Before and After) Rule is the
difference between the value before the
acquisition and the value after the acquisition
State (Summation) Rule is the value of the part
taken plus (damages to the remainder property
minus benefits to the remainder property
[the damages minus the benefits cannot
be less than zero dollars])
75

Negotiation

76

Objectives
Negotiation
Discuss right of way negotiation,
including its various components
from preparation to closing

77

Negotiation
the process by which two
or more people resolve differences to
reach a mutually acceptable agreement.

78

Conditions Necessary...
Issues must be negotiable
Parties must be willing to negotiate
Parties must trust each other

79

Trust
Placing confidence in another,
based on that persons character,
ability, strength or truthfulness

80

Roles
Agency
Property Owner
Taxpayer/Ratepayer
Acquisition Team
Problem Solver
Facilitator
Closer
81

Other

Types of Negotiation
Integrative
Bargaining
Attitudinal
Intra-agency
82

Integrative
Win-Win
Mutually beneficial outcomes
Inquiry
Collaborative
83

Bargaining
Win-Lose
Zero-Sum
Advocates positions
Compromise
84

Attitudinal
Trust
Common ground
Shared frame of reference
85

Intra-agency
Intra-organization

86

Characteristics (1)
Credibility
Expertness
Trustworthiness
Power/Dynamism
87

Power

88

Legitimate

Reward

Coercive

Reverent

Charismatic

Expertise

Situation

Information

Characteristics (2)
Courage
Empathy
Integrity/Ethics
Patience
89

The Funnel Technique

I. Information Getting
II. Information Giving
III. Problem Census
IV. Problem Solving
V. Closing
90

A Plan
Analyze
Develop
Optimize
Incorporate
Rules
BATNA
91

Day Three
Today we...
Finished discussing the valuation
process and the role of the appraiser
in the acquisition process
Discussed right of way negotiation,
including its various components from
preparation to closing
92

Day Four
Today, we will...
Express a basic understanding of the
federal laws related to the relocation
of residential and business occupants
Express a basic understanding of
property management concepts
Review the course and take an exam
93

Relocation Assistance

94

Objectives
Relocation Assistance
Express a basic understanding of the

federal laws related to the relocation

of residential and business occupants

95

Uniform Act Objectives

Advisory assistance in locating
replacement housing and replacement
business sites
Financial assistance to pay the cost of
relocating personal property and to help
those displaced to secure comparable
replacement housing
96

Residential Relocation Assistance

97

Advisory Assistance
Interview
Information
Inspection
Transportation
Timely written notice
98

Residential Relocation Assistance

99

Moving Expenses
Schedule Method
Actual Cost
Combination

100

Payment Options (1)

101

Payment Options (2)

102

Payment Options (3)

103

Payment Options (4)

104

Payment Options (5)

105

Payment Options (6)

106

Business Relocation Assistance

107

Advisory Assistance
Interview
Information
Assistance
Timely written notice
108

Business Relocation Assistance

109

Property Management

110

Objectives
Property Management
Express a basic understanding
of property management concepts

111

Property Management
the process of maintaining and
creating value in real property
consistent with the owners objectives.

112

Asset Management
Involves
Fiscal Management
Physical Management
Administrative Management
113

Property/Asset
Management Goals
Meet agency expectations
Ensure performance
Improve capacity
Reduce vacancy
Increase revenue
Enhance value
Provide flexibility
114

Increase social/community benefits

Inventories
Complete Property Listing
General Information
Property Classifications

115

Objectives (1)
At this point, you are able to...
Define real property law terms and concepts.
Apply the terms and concepts to right of way
acquisition
Discuss the effects of a public project on the
environment. Recognize some of the major U.S.
environmental acts. Explain the types of
environmental studies
116

Objectives (2)
At this point, you are able to...
Describe and demonstrate the three view
concept of engineering plans. Understand and
discuss the significance of property
descriptions and the difference types used
Demonstrate a basic understanding of the
valuation process and the role of the appraiser
in the acquisition process
117

Objectives (3)
At this point, you are able to...
Discuss right of way negotiation, including its
various components from preparation to closing
Express a basic understanding of the federal
laws related to the relocation of residential and
business occupants
Express a basic understanding of property
management concepts
118

Thank you!
119

100PPTRevision204.15.2013.USA