WHEN A PUBLIC AGENCY U.S. Department of Housing 

ACQUIRES YOUR PROPERTY and Urban Development 

 Office of Community Planning 

 and Development 

www.hud.gov/relocation 

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Introduction

This booklet describes important features of the Uniform Relocation Assistance and 

Real Property Acquisition Policies Act of 1970, as amended (URA) and provides 

general information about public acquisition of real property (real estate) that should be 

useful to you. 

Most acquisitions of real property by a public agency for a Federal project or a project in 

which Federal funds are used are covered by the URA. If you are notified that your 

property will be acquired for such a project, it is important that you learn your rights 

under this important law. 

This booklet may not answer all of your questions. If you have more questions about 

the acquisition of your property, contact the Agency responsible for the project. (Check 

the back of this booklet for the name of the person to contact at the Agency.) Ask your 

questions before you sell your property. Afterwards, it may be too late. 

General Questions

What Right Has Any Public Agency To Acquire My Property? 

The Federal Government and every State government have certain powers which are 

necessary for them to operate effectively. For example, they have the power to levy 

taxes and the power to maintain order. Another government power is the power to 

acquire private property for public purposes. This is known as the power of eminent 

domain. 

The rights of each of us are protected, however, by the Fifth and Fourteenth 

Amendments of the U.S. Constitution and by State constitutions and eminent domain 

laws which guarantee that if a public agency takes private property it must pay "just 

compensation" to the owner. The URA provides additional protections, as explained in 

this booklet. 

Who Made The Decision To Buy My Property?

The decision to acquire a property for a public project usually involves many persons 

and many determinations. The final determination to proceed with the project is made 

only after a thorough review which may include public hearings to obtain the views of 

interested citizens. 

If you have any questions about the project or the selection of your property for 

acquisition, you should ask a representative of the Agency which is responsible for the 
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project. 

How Will The Agency Determine How Much To Offer Me For My Property?

Before making you an offer, the Agency will obtain at least one appraisal of your 

property by a competent real property appraiser who is familiar with local property 

values. The appraiser will inspect your property and prepare a report that includes his 

or her professional opinion of its current fair market value. After the appraiser has 

completed his work, a review appraiser will examine the appraisal report to assure that 

the estimate is fair and the work conforms with professional appraisal standards. 

The Agency must offer you "just compensation" for your property. This amount cannot 

be less than the appraised fair market value of the property. "Just compensation" for 

your property does not take into account your relocation needs. If you are eligible for 

relocation assistance, it will be additional. 

What Is Fair Market Value?

Fair market value is sometimes defined as that amount of money which would probably 

be paid for a property in a sale between a willing seller, who does not have to sell, and a 

willing buyer, who does not have to buy. In some areas a different term or definition 

may be used. 

The fair market value of a property is generally considered to be "just compensation." 

Fair market value does not take into account intangible elements such as sentimental 

value, good will, business profits, or any special value that your property may have for 

you or for the Agency. 

How Does An Appraiser Determine The Fair Market Value Of My Property?

Each parcel of real property is different and therefore no single formula can be devised 

to appraise all properties. Among the factors an appraiser typically considers in 

estimating the value of real property are: 

• How it compares with similar properties in the area that have been sold recently. 

• How much rental income it could produce. 

• How much it would cost to reproduce the buildings and other structures, less any 

depreciation. 

Will I Have A Chance To Talk To The Appraiser?

Yes. You will be contacted and given the opportunity to accompany the appraiser on 

his or her inspection of your property. You may then inform the appraiser of any special 

features which you believe may add to the value of your property. It is in your best 

interest to provide the appraiser with all the useful information you can in order to insure 

that nothing of allowable value will be overlooked. If you are unable to meet with the 

appraiser, you may wish to have a person who is familiar with your property represent 

you. 
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How Soon Will I Receive A Written Purchase Offer?

Generally, this will depend on the amount of work required to appraise your property. In 

the case of a typical single-family house, it is usually possible to make a written 

purchase offer within 45 to 60 days of the date an appraiser is selected to appraise the 

property. 

Promptly after the appraisal has been reviewed (and any necessary corrections 

obtained), the Agency will determine just compensation and give you a written purchase 

offer in that amount along with a "summary statement," explaining the basis for the 

offer. No negotiations are to take place before you receive the written purchase offer 

and summary statement. 

What Is In The Summary Statement Of The Basis For The Offer Of Just 

Compensation?

The summary statement of the basis for the offer of just compensation will include: 

• An accurate description of the property and the interest in the property to be 

acquired. 

• A statement of the amount offered as just compensation. (If only part of the 

property is to be acquired, the compensation for the part to be acquired and the 

compensation for damages, if any, to the remaining part will be separately 

stated.) 

• A list of the buildings and other improvements covered by the offer. (If there is a 

separately held interest in the property not owned by you and not covered by the 

offer (e.g., a tenant-owned improvement), it will be so identified.) 

Must I Accept The Agency's Offer?

No. You are entitled to present your evidence as to the amount you believe is the fair 

market value of your property and to make suggestions for changing the terms and 

conditions of the offer. The Agency will consider your evidence and suggestions. When 

fully justified by the available evidence of value, the offer price will be increased. 

May Someone Represent Me During Negotiations?

Yes. If you would like an attorney or anyone else to represent you during negotiations, 

please inform the Agency. However, the URA does not require the Agency to pay the 

costs of such representation. 

If I Reach Agreement With The Agency, How Soon Will I Be Paid?

If you reach a satisfactory agreement to sell your property and your ownership (title to 

the property) is clear, payment will be made at a mutually acceptable time. Generally, 
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this should be possible within 30 to 60 days after you sign a purchase contract. If the 

title evidence obtained by the Agency indicates that further action is necessary to show 

that your ownership is clear, you may be able to hasten the payment by helping the 

Agency obtain the necessary proof. (Title evidence is basically a legal record of the 

ownership of the property. It identifies the owners of record and lists the restrictive deed 

covenants and recorded mortgages, liens, and other instruments affecting your 

ownership of the property.) 

What Happens If I Don't Agree To The Agency's Purchase Offer?

If you are unable to reach an agreement through negotiations, the Agency may file a 

suit in court to acquire your property through an eminent domain proceeding. Eminent 

domain proceedings are often called condemnations. If your property is to be acquired 

by condemnation, the Agency will file the condemnation suit without unreasonable 

delay. 

An Agency may also decide not to buy your property, if it cannot reach agreement on a 

price, and find another property to buy instead. 

What Happens After The Agency Condemns My Property?

You will be notified of the action. Condemnation procedures vary, and the Agency will 

explain the procedures which apply in your case. 

Generally, when an Agency files a condemnation suit, it must deposit with the court (or 

in an escrow account) an amount not less than its appraisal of the fair market value of 

the property. You should be able to withdraw this amount, less any amounts necessary 

to pay off any mortgage or other liens on the property and to resolve any special 

ownership problems. Withdrawal of your share of the money will not affect your right to 

seek additional compensation for your property. 

During the condemnation proceeding, you will be provided an opportunity to introduce 

your evidence as to the value of your property. Of course, the Agency will have the 

same right. After hearing the evidence of all parties, the court will determine the amount 

of just compensation. If that amount exceeds the amount deposited by the Agency, you 

will be paid the difference, plus any interest that may be provided by law. 

To help you in presenting your case in a condemnation proceeding, you may wish to 

employ an attorney and an appraiser. However, in most cases the costs of these 

professional services and other costs which an owner incurs in presenting his or her 

case to the court must be paid by the owner. 

What Can I Do If I Am Not Satisfied With The Court's Determination?

If you are not satisfied with the court judgment, you may file an appeal with the 

appropriate appellate court for the area in which your property is located. If you are 

considering an appeal, you should check on the applicable time limit for filing the appeal 

and consult with your attorney on whether you have a basis for the appeal. The Agency 

may also file an appeal if it believes the amount of the judgment is too high. 
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Will I Have To Pay Any Closing Costs?

You will be responsible for the payment of the balance on any mortgage and other liens 

on your property. Also, if your ownership is not clear, you may have to pay the cost of 

clearing it. But the Agency is responsible for all reasonable and necessary costs for: 

• Typical legal and other services required to complete the sale, recording fees, 

revenue stamps, transfer taxes and any similar expenses which are incidental to 

transferring ownership to the Agency. 

• Penalty costs and other charges related to prepayment of any recorded 

mortgage on the property that was entered into in good faith. 

• Real property taxes covering the period beginning on the date the Agency 

acquires your property. 

Whenever possible, the Agency will make arrangements to pay these costs directly. If 

you must incur any of these expenses yourself, you will be repaid--usually at the time of 

closing. If you later discover other costs for which you should be repaid, you should 

request repayment from the Agency immediately. The Agency will assist you in filing a 

claim. Finally, if you believe that you were not properly repaid, you may appeal the 

decision to the Agency. 

May I Keep Any Of The Buildings Or Other Improvements On My Property?

Very often, many or all of the improvements on the property are not required by the 

Agency. This might include such items as a fireplace mantel, your favorite shrubbery, 

or even an entire house. If you wish to keep any improvements, please let the Agency 

know as soon as possible. 

If you do arrange to keep any improvement, the Agency will deduct only its salvage 

value from the purchase price you would otherwise receive. (The salvage value of an 

item is its probable selling price if offered for sale on the condition that the buyer will 

remove it at his or her own expense.) Of course, if you arrange to keep any real 

property improvement, you will not be eligible to receive a relocation payment for the 

cost of moving it to a new location. 

Can The Agency Take Only A Part Of My Property?

Yes. But if the purchase of only a part of your property reduces the value of the 

remaining part(s), you will be paid for the loss in value. Also, if any remaining part 

would have little or no utility or value to you, the Agency will offer to buy that remaining 

part from you. 

Occasionally, a public project will increase the value of the part which is not acquired by 

the Agency. Under some eminent domain laws, the amount of such increase in value is 

deducted from the purchase payment the owner would otherwise receive. 
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Will I Have To Pay Rent To The Agency After My Property Is Acquired?

If you remain on the property after the acquisition, you may be required to pay a fair rent 

to the Agency. Such rent will not exceed that charged for the use of comparable 

properties in the area. 

How Soon Must I Move?

If possible, a mutually agreeable date for the move will be worked out. Unless there is 

an urgent need for your property (e.g., your occupancy would present a health or safety 

emergency), you will not be required to move without at least 90 days advance written 

notice. 

If you reach a voluntary agreement to sell your property, you will not be required to 

move before you receive the agreed purchase price. If the property is acquired by 

condemnation, you cannot be required to move before the estimated fair market value 

of the property has been deposited with the court so that you can withdraw your share. 

If you are being displaced from your home, you will not be required to move before a 

comparable replacement home is available to you. 

Will I Receive Relocation Assistance?

Title II of the URA requires that certain relocation payments and other assistance must 

be provided to families, individuals, businesses, farms, and nonprofit organizations 

when they are displaced or their personal property must be moved as a result of a 

project that is covered by the URA. 

The Agency will furnish you a full explanation of any relocation assistance to which you 

may be entitled. If you have any questions about such assistance, please contact the 

Agency. In order for the Agency to fulfill its relocation obligations to you, you must keep 

the Agency informed of your plans. 

My Property Is Worth More Now. Must I Pay Capital Gains Tax On The Increase?

Internal Revenue Service (IRS) Publication 544 explains how the Federal income tax 

would apply to a gain or loss resulting from the sale or condemnation of real property, or 

its sale under the threat of condemnation, for public purposes. If you have any 

questions about the IRS rules, you should discuss your particular circumstances with 

your personal tax advisor or your local IRS office. 

I'm A Veteran. How About My VA Loan?

After your VA home mortgage loan has been repaid, you will be permitted to obtain 

another VA loan to purchase another property. Check on such arrangements with your 

nearest Veterans Administration Office. 
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Is It Possible To Donate Property?

Yes. You may donate your property or sell it to the Agency for less than its fair market 

value. The Agency must obtain an appraisal of the property and offer just 

compensation for it, unless you release the Agency from these obligations. 

Additional Information

If you have any questions after reading this booklet, contact the Agency and discuss 

your concerns with the Agency representative. 

Agency: 

Address: 

Office Hours: 

Telephone Number: 

Person to Contact: