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Right-of-Way Division - Excess Land Office

Basics of the Process:

The Excess Land Office is responsible for the administration and disposal of TDOT’s surplus property through fee simple sales, changes of access control, land leases, and licenses.  The office is also responsible for maintaining a record of all uneconomic remnants, as well as the use of airspace for non-highway purposes.

Sales:

  1. A completed application is sent to TDOT’s Regional Right-of-Way Office, Excess Land Section.
  2. The Regional Right-of-Way Office investigates the request and submits a report to the Central Right-of-Way Office in Nashville.
  3. The Central Right-of-Way Office presents the request to the Department’s Excess Land Sub-committee.
  4. If the request is recommended, the Central Right-of-Way Office will notify the requestor by letter.  This does not indicate that final approval has been obtained.  It simply means that the request is moving forward in the process.
  5. An environmental document is prepared if needed.  If this document must be prepared by a consultant, the requestor is responsible for the associated costs.
  6. The request packet and environmental document are sent to the Federal Highway Administration for their concurrence.
  7. If the Department of Transportation determines a survey of the property is required, the requestor will pay in advance for the cost of the survey.
  8. A preliminary value estimate is prepared to determine if the fair market value (FMV) is likely to exceed $10,000.  If the FMV is estimated to be less than $10,000, an appraisal will be prepared by the Department’s staff appraiser to determine the FMV.  If the estimate is greater than $10,000, the Department will employ a consultant fee appraiser.  In this case, the requestor must pay the appraisal fee and provide written permission for TDOT to proceed. 
  9. The reviewed appraisal is sent to the Department of General Services for their concurrence.
  10. The requestor submits payment of the fair market value of the property.
  11. The deed is prepared and executed.

Leases: Same process as above except first annual rent payment is collected before lease is executed.  Also, requestor must provide a certificate of liability insurance with limits of $300,000 per claimant and $1,000,000 per occurrence.

Licenses: Once approved by FHWA, the license agreement is prepared and sent to the requestor for signatures.  It is then sent to the Commissioner for execution.  Licensee must provide a certificate of liability insurance with limits of $300,000 per claimant and $1,000,000 per occurrence.

Note: All sales/leases with a fair market value exceeding $75,000 will be transferred to the Department of General Services for processing.  General Services will charge a Real Estate Management (REM) fee for handling these dispositions.  This fee is in addition to all other costs associated with the transaction.  The Real Estate Management fee will be charged as follows:


 Fair Market Value: REM Fee:
 $0 - $10,000 $500 minimum
 $10,000 - $199,999 5% of transaction amount
 $200,000 or greater $10,000 maximum
 Lease Annual Rent Value: REM Fee:
 $0 - $2,000 $500 (one time minimum charge)
 $2,001 or greater 5% of annual rent