Property Acquisition

STEP 1:

After the project has been approved and right-of-way limits have been set, the property owner is notified of the need to acquire the property.

An independent, certified appraiser hired by NDOT then contacts the property owner and invites the property owner to accompany the appraiser during the inspection of the property. The appraiser reviews a number of factors including comparable sales in the area to arrive at an estimate of fair market value for the property. The appraiser is required to ignore any affect on the property value due to the project.

An NDOT Review Appraiser reviews the appraisal to ensure the property has received an impartial estimation of the fair market value. In addition to the fair market value of the property, NDOT pays appraisal fees, recording fees, escrow fees, prepayment penalties and the pro rata portion of the real property taxes. There are no realty fees such as most property owners pay in a normal sale.

NDOT makes an appointment with the property owner and makes a purchase offer in person.

The property owner is given a reasonable amount of time to consider the offer.

If the property owner disagrees with the amount offered, NDOT will consider the property owner's supported evidence of a higher value. If agreement still cannot be reached, it may be necessary for the courts to determine just compensation for the property.

NDOT provides businesses, homeowners and tenants with relocation assistance. Owners and tenants may move anywhere they choose and are not required to move for at least 90 days after the offer. There are several moving options. Generally, reimbursable moving expenses include:

• Costs of packing, unpacking, disconnecting, dismantling, removing, reassembling, and reinstalling relocated personal property, and mover's insurance for moves within a 50 mile radius.
• Costs for disconnecting and reconnecting utilities

Replacement housing payments or rental supplements may be available for eligible occupants. The amount of the replacement housing allowance depends upon the length of occupancy and NDOT's determination of the cost to purchase or rent a comparable dwelling. Normally this allowance does not exceed $22,500 for a replacement home for an owner or $5,250 for a rental supplement for a tenant. An example of such a payment for a replacement home might be as follows:

Cost of a comparable replacement home: $210,000.00
Acquisition price of house being purchased: $202,000.00
Price differential (housing supplement paid): $8,000.00

Homeowners buying new homes may also receive compensation for increased interest payments on a new loan, assuming the rate is higher than the loan on the home sold. With some limitations, the loan origination fee and points may be reimbursed based on the original unpaid mortgage balance.

In addition to the actual moving expenses for a small business, they may be eligible for certain reasonable actual expenses, not to exceed $10,000, incurred in relocating and re-establishing the business. Examples of some expenses may include:

• Repairs and improvements required by law
• Modification necessary to accommodate the business to make it suitable for operation
• Limited costs for exterior signage
• Limited advertisement costs of replacement

All vacated property will be managed and maintained by NDOT.