Welcome to the International Right of Way Association

1
Welcome to theInternational Right of Way
AssociationsCourse 100Principles ofLand
Acquisition
100-PT Revision 2 12.21.06.CAN
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• Introductions
• Who we are
• What we do
• Where we do it
• How long weve been doing it
• Our goals for the course...

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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 Canadian
  environmental acts.
• explain the types of environmental studies

4
Objectives (2)At the conclusion of the four
days, you will be able to...

• describe and demonstrate the three viewconcept
  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

5
Objectives (3)At the conclusion of the four
days, you will be able to...

• discuss right of way negotiation, including
  itsvarious components from preparation to
  closing
• express a basic understanding of relocation
  assistance
• express a basic understanding of property
  management concepts

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Housekeeping
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ScheduleDay One and Day Two (1)

• 800 - 830 Introductions, Etc.
• 830 - 1200 Property Law Concepts
• 100 - 445 Environmental Concerns
• 800 - 815 Recap
• 815 - 1200 Property Descriptions
• 100 - 445 Appraisal

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ScheduleDay Three and Day Four (2)

• 800 - 815 Recap
• 815 - 1015 Appraisal
• 1030 - 445 Negotiation
• 800 - 815 Recap
• 815 - 1015 Relocation Assistance
• 1030 - 245 Property Management
• 330 - 500 Exam

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Property Law Concepts
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ObjectivesProperty Law Concepts

• define real property law terms and concepts
• apply the terms and concepts to right of way
  acquisition

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The Government
Executive Legislative Judicial
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Types of Laws

• Common lawevolved from early court decisions
• Civil lawbased on written codes or laws

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The Constitution
Federal Provincial
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Property

• Tangible items of value that can be touched
• Intangible items of value that are not
  tangible

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Real Estate, Real Property

• Real estate is the physical land and
• appurtenances attached to the land
• Real property is all interests, benefits and
  rights inherent in theownership of the physical
  real estate

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Personal Property, Fixtures

• Personal property refers to the movableitems
  that are not a permanent partof the real estate
• Fixtures are items that were originallypersonal
  property but which havebecome part of the real
  estate

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EstatesFee Simple EstateLife EstateLease
Interests
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Other Rights

• Easements
• Profits a Prendre
• Covenants Running with the Land
• Prescriptive Rights
• Licenses/Permits

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Easement

• An easement is a non-possessoryinterest one has
  in the property of another for a specific
  purpose.

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Types of Ownership
Concurrent Ownership
Owner in Severalty
Joint Tenancy Tenancy in Common
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Land Recording Systems

• Registry System
• Land Titles System

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Contracts (1)

• A contract is an agreement between
• parties, creating an obligation
• for which the law providesa remedy for breach.

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Contracts (2)

• Mutual consent or agreement
• Competent parties
• Lawful consideration
• Lawful subject matter

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Environmental Concerns
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ObjectivesEnvironmental ConcernsYou will be
able to

• discuss the effects, both beneficial and
  adverse, of a public project on the environment
  , and learn of ways to minimize adverse impacts
• recognize some of the major Canadian
  environmental acts
• explain the types of environmental studies
  and what each type hopes to achieve

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Environment

• Environment is the combinationof conditions
  that affect and influencethe growth,
  development, andsurvival of living things.

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Common Law and the Environment
Restrictive Deed Covenant
Nuisance
A deed clause that binds a party to do or not to
do something. It "runs with the land.
A condition that unduly interferes with the use
or enjoyment of land.
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Environmental Legislation

• Canada Wildlife Act
• Canada Water Act
• Fisheries Act
• Forestry Act
• Canada Environmental Assessment Act
• Canada Environmental Protection Act
• Species at Risk Act
• Numerous Provincial Environment Acts

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Environmental Review Environmental Assessment

• The environmental review is a review and decision
  
• process for evaluating the impact that
• actions will have on the environment
• An environmental assessment is an action to
• determine and manage risks associated with
• the acquisition of property that is
• environmentally impacted

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Environmental Assessment

• Incidental Screening
• Environmental Site Assessments
• Phase I
• Phase II
• Phase III

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The Project
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Day One RecapToday, 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
  Canadian environmental acts.
• Explained the types of environmental studies

33
Day TwoToday, 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 understandingof
  the valuation process and the role of the
  appraiser in the acquisition process

34
Property Descriptions
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ObjectivesProperty Descriptions

• describe and demonstrate the three view concept
  of engineering plans
• understand and discuss the significance of
  property descriptions and the difference types
  used

36
(No Transcript)
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Three View Concept

• Plan View
• Profile View
• Cross Section View

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Plan View Imperial
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Plan View Metric
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Profile View
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Cross section View
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Property Descriptions

• Plane Coordinate Systems
• Metes and Bounds Descriptions
• Dominion Lands Survey System
• Subdivision Descriptions
• Centreline
• Point

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Metes and Bounds
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Bearings
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Dominion LandsSurvey System (1)
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Dominion LandsSurvey System (2)
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Dominion LandsSurvey System (3)
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Dominion LandsSurvey System (4)
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Dominion LandsSurvey System (5)
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Subdivision Descriptions
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Centreline
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Point
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Appraisal
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ObjectivesAppraisal

• demonstrate a basic understanding of the
  valuation process and the role of the appraiser
  in the acquisition process

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Appraisal

• An appraisal is a formal opinion of value
• prepared as a result of a retainer
• intended for reliance by identified parties
• for which the appraiser assumes responsibility

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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.
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Market Value
Market value is the most probable price which a
property should bring in a competitive and open
market as of a specific date under all conditions
requisite to a fair sale, the buyer and seller
each acting prudently and knowledgeably, and
assuming the price paid is not affected by undue
stimulus.
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Value Principles (Principle of Substitution)
When several similar or commensurate commodities,
goods, or services are available, the one with
the lowest price attracts the greatest demand and
widest distribution.
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Value Principles (Principle of Supply and Demand)
The price of a good or service varies directly
with demand and inversely with supply.
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Value Principles (Principle of Anticipation)
The expectation of future benefits creates value.
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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 absencedetracts from the whole.
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Valuation Process
Appraisal Problem Definition Scope of Work Data
Collection and Property Descriptions Data
Analysis Land Value Opinion Three Approaches to
Value Reconciliation and Final Value
Opinion Defined Value Opinion Report
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Valuation Process
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?
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Valuation Process
Three Approaches to Value Cost
Approach Direct Comparison
Income Approach
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Valuation Process

• 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

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Valuation Process

• Direct 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 intoa final
  value opinion

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Day Two RecapToday, 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 understandingof
  the valuation process and the role of the
  appraiser in the acquisition process

68
Day ThreeToday, 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

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Valuation Process
Income Approach The conversion of income
intovalue through a rate or a ratio. Direct
Capitalization Yield Capitalization
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Valuation Process

• Income Approach
• Estimate the subjects annual potential gross
  income
• Determine a vacancy and bad debt allowance
• Subtract the vacancy and bad debt allowance from
  the potential gross income
• Estimate annual property expenses and subtract
  the expenses from the effective gross income to
  arrive atthe net operating income
• Develop a capitalization rate
• Convert the net operating income into value

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Valuation Process
Appraisal Problem Definition Scope of Work Data
Collection and Property Descriptions Data
Analysis Land Value Opinion Three Approaches to
Value Reconciliation and Final Value
Opinion Defined Value Opinion Report
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Partial Acquisitions (1)

• Larger parcel is the total propertybefore the
  taking.
• Title
• Use
• Contiguity or proximity
• Value of the part taken is determinedby
  multiplying the quantity taken times the before
  unit value of the item

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Partial Acquisitions (2)

• Injurious affection represents the loss
• in value to the remainder propertyas a result of
  a partial acquisition.
• Benefits to the remainder propertyrepresent the
  increase in value tothe remainder property as a
  result of a partial acquisition.

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Negotiation
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ObjectivesNegotiation

• discuss right of way negotiation, including its
  various componentsfrom preparation to closing

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Negotiation
the process by whichtwo or more people resolve
differences to reach a mutually acceptable
agreement.
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Conditions Necessary...
Issues must be negotiable Parties must be
willingand able to negotiate Parties must trust
each other
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Placing confidence in another, based on that
persons character, ability, strength, or
truthfulness
Trust
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Roles Agency Property Owner Taxpayer/Ratepayer Acq
uisition Team Problem Solver Facilitator Closer Ot
her
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Types of Negotiations Integrative Bargaining Atti
tudinal Intra-agency
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Integrative
Win-Win Mutually beneficial outcomes Inquiry Col
laborative
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Bargaining
Win-Lose Zero-Sum Advocates
positions Compromise
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Attitudinal
Trust Common ground Shared frame of reference
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Intra-agency
Intra-organization
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Characteristics (1)
Credibility Expertness Trustworthiness Power/Dynam
ism
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Power
Legitimate Reward Coercive
Reverent Charismatic
Expertise Situation Information
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Characteristics (2)
Courage Empathy Integrity/Ethics Patience
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• Funnel Technique

I. Information Getting
II. Information Giving
III. Problem Census
IV. Problem Solving
IV. Problem Solving
V. Closing
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A PlanAnalyzeDevelopOptimizeIncorporateRule
sBATNA
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Day Three RecapToday, we...

• finished discussing the valuationprocess and
  the role of the appraiser in the acquisition
  process
• discussed right of way negotiation, including its
  various components from preparation to closing

91
Day FourToday, 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

92
Relocation Assistance
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ObjectivesRelocation Assistance

• express a basic understanding of residential
  relocation assistance specifically equivalent
  reinstatement and disturbance damages

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Monetary Assistance

• Home for a home
• Equivalent reinstatement
• Disturbance damages
• Additional compensation

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Non-residentialRelocation Assistance

• Equivalent reinstatement
• Disturbance damages

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Property Management
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ObjectivesProperty Management

• Express a basic understanding of property
  management concepts

98
Property Management
the process of maintaining and creating value
in real property consistent with the owners
objectives.
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Asset Management
Involves Fiscal Management Physical
Management Administrative Management
100
Property/AssetManagement Goals
Meet agency expectations Ensure
performance Improve capacity Reduce
vacancy Increase revenue Enhance value Provide
flexibility Increase social/community benefits
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Inventories
General Information Property Classifications
102
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 Canadian
  environmental acts.
• explain the types of environmental studies.

103
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

104
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 residential
  relocation assistance, specifically equivalent
  reinstatement and disturbance damages
• express a basic understanding of property
  management concepts

105
Thank you!
100-PT Revision 2 12.21.06.CAN