Licensing Right-of-Way Agents

CDOT and DORA Partner to Improve Appraisal Licensing for Right-of-Way (ROW) Agents

Update: September 5, 2014
For the joint (CDOT / DORA) improvement effort described in the article below:  obtaining these licenses would have required 300 hours of course work and 3,000 hours of CDOT staff experience time required for the licensing process. So, eliminating this requirement has saved the equivalent of approximately $80,000 of staff time.  Additionally, the coursework required to do this would have cost another $5,500.

Update: August 29, 2014
The success of the partnership between CDOT and the Colorado Department of Regulatory Agencies (DORA) to improve the licensing of Right-of-Way (ROW) agents is featured on page 18 of the August 2014 report entitled: "Pits and Peeves 2.0, Progress in Motion Report -- Cutting Red Tape in Government: “Making government more efficient, effective and elegant”, which is available here: Cutting Red Tape in Colorado State Government

More details about this improvement effort are listed the summary below.

Posted: February 14, 2014

CDOT PARTNERS WITH DORA TO IMPROVE APPRAISAL LICENSING FOR RIGHT-OF-WAY (ROW) AGENTS

CDOT and DORA Partner to Improve Appraisal Licensing for Right-of-Way (ROW) Agents

What was improved, briefly

CDOT partnered with the Division of Real Estate (DRE) within the Colorado Department of Regulatory Agencies (DORA) to clarify the requirement of appraisal license law as it applies to Right-of-Way (ROW) Agents. After a review, DORA concluded that CDOT staff would NOT need to obtain these licenses, thereby reducing the workload on CDOT ROW staff.

Background and details of the improvement

Governmental entities and private industry sometimes need to acquire private property for public use. Right-of-Way (ROW) Agents, also known as land agents, negotiate with the owners or their representatives to purchase their property or obtain the right to use it.

CDOT identified a concern to DORA:  it appeared that CDOT Right-of-Way Agents would need a state license to prepare value findings greater than the state limit of $5,000; and that these Agents would also be required to comply with the Uniform Standards of Professional Appraisal Practice (USPAP), requirements which could potentially result in increased delays and costs in this level of appraisal. CDOT shared this concern with DRE.

After a thorough review of federal rules and state statutes, DORA’s Division of Real Estate concluded that CDOT staff members are actually NOT required by law to have this license, nor are they be required to comply with USPAP. DRE staff listened very carefully and attentively to issues raised by CDOT, and as a result of this collaborative effort, the additional regulatory burdens on CDOT were relieved.

The outcome was very positive.  CDOT thanked DORA for this partnership, including the statement, “Thank you for hearing us out here at CDOT Project Development/Right of Way Services, for thoughtful consideration and careful review of this request, and for penning this GRAND response that will certainly assuage long-held staff concerns and benefit our overall program.” This improvement effort is one example of our statewide effort for greater coordination among state agencies, in support of making Colorado state government more effective, efficient and elegant.