Maryland Transportation Authority

Why it is necessary to acquire property
for transportation projects

Maryland residents and our state's economy depend on a well-maintained and efficient transportation system. When transportation improvements are needed, whether it's construction of a new facility or upgrading existing facilities, the MdTA makes every effort to avoid or minimize property impacts to local residents and businesses. However, there are times when it is necessary to acquire private property. This is done through the process of "eminent domain." Eminent domain laws give states the right to acquire property for public purposes, such as the construction of a roadway.

If the land in question is yours, you are probably wondering what the right-of-way acquisition process is, what your rights are and what you should expect. The following information will provide some general guidelines on the process of property acquisition, including property appraisals and negotiations. It also discusses relocation assistance and compensation available to occupants who must move as a result of the acquisition.

The Acquisition Process

Following is the process MdTA uses when purchasing land and property.

1.Property Appraisal
First the MdTA determines how much property it needs to acquire. Surveys are completed to determine property lines, soil tests are performed, and property titles are researched. Property owners will be notified before any work is done on their property. Once the survey is completed, the needed right-of-way is professionally appraised by an independent qualified real estate appraiser. Since the appraiser must inspect the property, owners will be notified and may be present. The appraiser will consider recent sales in the same community or neighborhood, as well as current building costs and land values. Property owners can also provide information they feel may help determine the value. Property owners may also, at their own expense, obtain their own appraisal. The MdTA reviews the appraisal. Once they are satisfied that the conclusion reached is fair, accurate and reasonable, they set the just compensation for the property.

2. Negotiations
After the appraisal, an MdTA representative will meet with the property owner and provide them with the approved real estate appraisal and the amount of compensation being offered. All questions about the acquisition process and the offer will be answered and concerns addressed. Any new information about the property's value will be fully considered at any point during the acquisition process.

3. Entering into a Contract
After the acquisition and the offer are fully explained, a property owner may sign an option contract, which is used to secure the funds and the deed needed to complete the transaction. Once MdTA processes the option contract for acceptance, funds are set aside for payment to the property owner. When the deed is obtained for the property and the check received by the State, the property owner is contacted for settlement. The State will pay for the deed and any expenses associated with recording the deed. When the transaction is completed, a Form 1099 will be issued to the property owner in compliance with IRS regulations. Federal Tax or Social Security ID numbers need to be provided for anyone who will receive any portion of the settlement proceeds.

When an Agreement Can't Easily Be Reached

Should negotiations reach a stalemate, an alternative method of acquisition will be used for needed right-of-way. By law, there are three possible methods of alternative acquisition. At any point in the proceedings an agreement can be reached and the property owner can sign the option contract ending legal actions.

• Quick Take Condemnation by Commission-Board of Property Review Procedure. The State Highway Administration posts its estimate of just compensation with the Court at the time it files a condemnation petition. This ensures the funds are immedi ately available to the property owner and allows the State to take possession of the needed property. The case is then heard by a Board of Property Review for the County in which the property lies. The board renders its award of just compensation, which could be the same as, higher than, or lower than, the State's offer. Either the property owner or the State can appeal the award. If there is no appeal, the case goes to settlement in the same way as if an option contract had been signed. If either side appeals, the case goes to the next method.
• Immediate Entry Condemnation by Commission, Direct Trial Procedure. In this procedure, the State posts an estimate of just compensation with the Court. Funds are again available to the property owner. The case goes directly to trial in the Circuit Court, which hears evidence and issues an Inquisition transferring the property title to the State while setting the just compensation to be paid. This can be the same as, higher than, or lower than, the State's offer.
• The Condemnation Process is not normally used by the MdTA. In condemnation, the State files condemnation proceedings against the property, with just compensation made at the end of the proceedings when title and possession of the property change hands.

Relocation Assistance

Whenever property owners or their tenants must be relocated due to a transportation improvement, State and Federal law requires that eligible families, business owners, farms or non-profit organizations be offered relocation assistance services.

MdTA has specially trained relocation assistance counselors on hand to be of service during the relocation process. A counselor will be assigned to individual property owners to guide them through the experience and to explain timeliness, options, payments and services available. The goal is to minimize the disruption, physical hardship and confusion that can come with moving households or businesses and to make the process as problem-free as possible.

Owner occupants who are displaced are eligible for assistance such as:

• Help in finding a new residence
• Incidental settlement costs
• Mortgage interest differential
• Moving expenses
• Replacement housing payment

• Help in finding a new residence
• Rental replacement housing payments or down payment assistance
• Moving costs

• Help in finding a new business location
• A re-establishment allowance or a fixed moving cost payment
• Moving costs

Equal Opportunity Statement
It is the policy of the MdTA to ensure compliance with all equal opportunity legislation and regulations which prohibit discrimination on the basis of race, color, sex, national origin, age, religion or physical and/or mental handicap, in all MdTA program areas funded in whole or in part by the Federal Highway Administration. MdTA will not discriminate in the acquisition of right-of-way, or in the provision of relocation assistance.

For More Information
Maryland Transportation Authority
2310 Broening Highway
Baltimore, MD 21224
(410) 537-1029 (voice)
(410) 537-1027 (fax)
www.mdtransportationauthority.com