Companion Guide to Video August 2012

www.fhwa.dot.gov/federal-aidessentials

One of the fundamental rules when acquiring 

private property for public purposes—according to 

the U.S. Constitution—is that the owner be paid 

just compensation.

The Uniform Relocation Assistance and Real 

Property Acquisition Policies Act of 1970, or The 

Uniform Act, defines how public agencies must 

proceed when acquiring the right-of-way for a 

Federal-aid project. The act addresses: 

• The valuation of the property 

• The presentation of the offer to acquire 

the property

• Relocation assistance and benefit

Your agency must follow the rules of the Uniform 

Act to avoid delaying the project or losing Federal 

funding.

Let's see how an agency presents 

and negotiates a final offer and 

documents its compliance with the 

Uniform Act and applicable State 

and local laws.

Agencies are encouraged to present their offer of 

just compensation promptly after the appraisal is 

completed, and, whenever possible, in person. The 

reason is to provide the owner all the information 

necessary to make an informed decision and 

enough time to consider the offer.

Right-of-Way

Uniform Act

Acquisition and Negotiation

When acquiring private property for project right-of-way, certain 

Federal regulations must be followed to ensure owners are paid 

just compensation

When acquiring private property for project right-of-way, certain 

Federal regulations must be followed to ensure owners are paid 

just compensation
Federal-aid Essentials for Local Public Agencies

The owner may accept your agency’s offer or 

present a counter offer based on material he or 

she believes is relevant to the valuation of the 

property, such as a comparable sale not included 

on the agency’s appraisal report. If relevant, your 

agency must consider information presented by 

the owner.

After negotiations are complete, the owner 

transfers the property or property rights to your 

agency through a deed or other form of 

conveyance instrument. 

If all attempts to negotiate an agreement fail, your 

agency might have to exercise the power of 

eminent domain. Eminent domain gives the 

government the power to condemn and take 

possession of private property needed for public 

purposes. Condemnation procedures vary from 

State to State, but normally before an agency can 

take possession of a property, it deposits in an 

escrow account an amount not less than the 

appraised fair market value. 

Whether through conveyance or condemnation, 

the Federal Highway Administration considers the 

activity completed when your agency certifies 

that

• Physical and legal possession of the 

properties has been acquired in 

accordance with the Uniform Act and other 

applicable laws

• The properties are free and clear of any 

structures, businesses, or people

• Any displaced persons have been 

relocated

Now, let’s see how these steps work 

in practice. Our example involves 

the widening of a one-mile stretch of 

a city street.

The project will affect several different properties, 

one of which is a single-family home, owned and 

occupied by the Garcias. The City of Lakeside has 

recently determined the purchase offer and 

relocation benefit.

The agency negotiator calls the Garcias and 

schedules a time to present both the purchase and 

relocation offer in person. During the meeting, they 

discuss how the agency arrived at the figures and 

review the appraiser’s report. The Garcias have 

two teenagers in high school and express their 

desire to purchase another house in the same 

school district.

The Garcias contact a real estate agent for 

information about the real estate market in their 

area. From what they learn about properties that 

have sold recently, the Garcias accept the 

purchase offer.

At the real estate closing, the agency pays the 

closing costs. The Garcias receive a purchase 

payment and transfer the title to the agency.
Federal-aid Essentials for Local Public Agencies

Acquisition is one of the most sensitive aspects of 

an agency’s activities and your agency must 

conduct them in accordance with the Uniform Act 

and other Federal regulations. As seen in our 

example, documenting your agency’s actions in a 

contact log is an important way of showing 

compliance with the regulations. A typical log 

includes:

• The purchase offer and the basis for the 

offer

• All phone calls and meetings with the 

landowner or other representatives

• Any counteroffers

• If applicable, reasons a settlement could 

not be reached 

Your State department of 

transportation—or State DOT—

provides guidance through its Rightof- Way Procedures Manual and is 

responsible for the oversight of your 

agency’s program.

The staff in the State DOT right-of-way office can 

assist your agency with following the right-of-way 

acquisition rules for Federal-aid projects. 
Federal-aid Essentials for Local Public Agencies

The content of this 

document is not a 

substitute for 

information obtained 

from State departments 

of transportation, 

appropriate FHWA 

Division Offices, and 

applicable laws. 

Scenarios have been 

simplified for emphasis 

and do not necessarily 

reflect the actual range of 

requirements applicable 

to the scenario or this 

topic. This document

was created under 

contract number

DTFH61-11-D-00025 by 

the Federal Highway 

Administration, U.S. 

Department of 

Transportation, and is 

offered to the public to 

heighten and focus 

awareness of Federal-aid 

requirements within the 

local public agencies 

community and 

reinforces the 

importance of these 

necessary policies, 

procedures, and 

practices.

This companion resource 

is the script content for 

the video production of 

the same name. 

Web Resources

• Detailed information and additional links for Federal-aid right-of-way 

program requirements

http://www.fhwa.dot.gov/realestate/lpaguide/index.htm

• A resource for FHWA programs and activities for various transportation 

improvement program professionals and right-of-way professionals

http://www.fhwa.dot.gov/realestate/index.htm

• Frequently asked question on 49 CFR Part 24, the Uniform Act

http://www.fhwa.dot.gov/realestate/ua/uafaqs.htm

• FHWA rules and procedures regarding right-of-way acquisition and property 

management on Federal-aid projects

http://www.access.gpo.gov/nara/cfr/waisidx_11/23cfr710_11.html

• U.S. DOT rules on procedures used to obtain right-of-way for federally 

assisted projects

http://www.ecfr.gov/cgi/t/text/textidx?c=ecfr&sid=3bdda26e1102fe42dd21611091c4a569&rgn=div5&view=tex

t&node=49:1.0.1.1.18&idno=49