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Flowchart 5E: Acquisition Process

Full Flowchart

You can also dig more deeply into the separate pieces of the flowchart below.


Fair Market Value (FMV) or Waiver Valuation represents the amount of compensation that will be offered to the property owner for the proposed acquisition. The acquisition process and relocation process can begin once the FMVs and/or Waiver Valuations are accepted and ROW plans are approved.

See the FHWA video on acquisition and negotiation for more information.

The local agency, its agent or CDOT makes a written offer to the property owner to acquire the property at the FMV or Waiver Valuation amount. The agent includes a written statement explaining the basis for the amount established as just compensation. The agent must conduct negotiations in good faith and conduct fair transactions.

See CDOT ROW Manual, Chapter 4, Acquisition, Section 4.7.6, Offer to Acquire.

The owner is allowed a reasonable opportunity (recommend 30 days minimum) to consider the offer and to present information which is believed to be relevant in determining the value of the property, along with suggested modification in the proposed terms and conditions of the purchase.

See CDOT ROW Manual, Chapter 4, Acquisition, Section 4.7.4, Contact with the Owner.

The local agency, or its consultant, or CDOT acquires the property by negotiation, settlement, donation, or condemnation. An administrative settlement is a negotiated settlement of a right of way acquisition case in which the local agency and CDOT have administratively approved payment in excess of the FMV. For more information see ROW Manual, Chapter 8, Section 8.16 – Settlements. CDOT Form 783, Memorandum of Agreement must be a complete statement of all the terms of the agreement between the property owner and grantee. The MOA must include all the rights and responsibilities of the grantor (owner) and the grantee (local agency). It must include all money to be paid for land, for improvements, and for compensable damages, less the approved salvage value of any improvements retained by the owner as part of consideration for the settlement and any other agreements or inventories that are a part of the settlement. In addition to accurate sums of monies to be paid, the property description must be complete, and all other issues specific to that particular transaction, including attachments, such its exhibits, must be described and noted. See CDOT ROW Manual, Chapter 4, Acquisition, Section 4.7.8, Memorandum of Agreement (MOA).

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