[Code of Federal Regulations]
[Title 32, Volume 4]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR644.47]

[Page 139-140]
 
                       TITLE 32--NATIONAL DEFENSE
 
              CHAPTER V--DEPARTMENT OF THE ARMY (CONTINUED)
 
PART 644--REAL ESTATE HANDBOOK--Table of Contents
 
                          Subpart B--Appraisal
 
Sec. 644.47  Appraisal of other interests.

    (a) Minerals. (1) In all cases, the value of the subsurface will be 
included or accounted for in the appraisal report in such manner that 
negotiations may be readily conducted to acquire or extinguish 
subsurface rights if they are outstanding in third parties or if it 
develops that the vendors desire to reserve them. In those instances 
where minerals are held separately in large blocks underlying several 
individual surface tracts, a statement to this effect should be included 
and the plan for appraising the mineral estate identified. Unless the 
person who is appraising the surface has had training and experience in 
appraising minerals, the subsurface appraisal should be made separately 
by an appraiser qualified to perform this service. Since the removal of 
certain minerals may destroy the usefulness of the surface, care should 
be exercised to avoid duplication of value.
    (2) In the event that subsurface valuation is unfamiliar to the 
Division or District requiring same, HQDA (DAEN-REE) WASH DC 20314 
should be contacted for advice and recommendations. Mineral valuation 
engineers within the Corps may be utilized on a cost reimburseable basis 
for furnishing gross or tract appraisals.
    (b) Timber. (1) Where the land being appraised has only young trees 
or timber not of merchantable size, the value thereof will be included 
with the value of the land. If the timber is of merchantable size, a 
timber cruise will be made by a professional forester and the timber 
classified in the appraisal according to species, type, range of size, 
quantity, unit value, and total value. A discussion of logging, haulage, 
and market conditions will be given. The total value of timber shall be 
the amount by which the timber enhances the market value of the bare 
land.
    (2) Extreme care must be exercised in the use of separate timber 
estimates for appraising timber land, so as to avoid ``doubling up.'' 
Where a timber cruise or estimate is used, comparable sales of recently 
timbered land should be used to support the remaining land value. Where 
such sales are not available, care must be utilized to extract the 
timber value from sales of timber land. The optimum situation would be 
to have sales that were also cruised; however, this does not often 
happen.

[[Page 140]]

    (c) Growing Crops. (1) Crop appraisals will not ordinarily be 
necessary except in those cases where the Division or District has 
determined that possession of the cropland is necessary prior to the 
normal harvest period. Where the Division or District Engineer has 
determined that the landowner or his tenant cannot be permitted to 
harvest the crops, they will be appraised as separate property items.
    (2) The crop appraisal will identify the crops by type, number of 
acres, estimated yield per acre taking into account all hazards, the 
unit value, gross market value at maturity based upon current local 
prices for the commodities less cost of bringing to maturity, harvest, 
and delivering to available markets. The expected harvest period will be 
reported, together with other pertinent information, in order to 
indicate an approximate date when the cropland may be available for 
construction purposes.
    (d) Use of Government-owned Property. (1) An appraisal will be made, 
when required, to justify the consideration reserved in all leases, 
licenses and easements, except those specifically mentioned in paragraph 
(d)(3) of this section. The appraisal will be made in accordance with 
acceptable standards applicable to the particular type of property and 
the use to be made thereof in the proposed grant, and in accordance with 
the general appraisal practices and standards heretofore outlined in 
this chapter. Ordinarily the appraisals of property involving 
substantial improvements will include, in addition to complete coverage 
of all factors influencing the use of the property appraised, complete 
information as to the following:
    (i) Data of acquisition and completion of Government construction.
    (ii) Complete cost data as to original purchase price and Government 
construction.
    (iii) Detailed discussion of the predominant uses to which the 
property is adaptable.
    (iv) Competitive position of the property with respect to 
availability of privately-owned properties for similar use.
    (v) Estimate of market value of fee title.
    (vi) Estimate of annual rental value assuming unrestricted use over 
a reasonable period of time.
    (vii) Estimate of annual rental value under proposed Government 
restrictions.
    (2) Time consuming and lengthy appraisal reports should be avoided 
in the case of low value grants involving Government-owned property. The 
consideration in such cases may be substantiated by a simplified 
appraisal report by a qualified appraiser setting forth only such facts 
as are required to validate his conclusions as to value. In such 
instances, a physical inspection of the property may be waived where the 
appraiser is sufficiently familiar with the property under appraisals 
and local market conditions to prepare a reasonable value estimate of 
the estate to be appraised. When a property is not physically inspected, 
it will be so noted in the appraisal report. The decision concerning the 
necessity for a physical inspection of the property and analyzing local 
market conditions will rest with the appraiser signing the appraisal 
certificate since he is personally responsible for the value conclusion 
developed in the appraisal report. A low value grant for the purpose of 
this paragraph is defined as any grant for which the fair market rental 
value (before applying any offset in rental for estimated savings in 
maintenance, protection, repair and restoration) does not exceed the 
following:

Easement--$500 for the term.
Lease or License--$500 per annum if granted for not more than a five-
year period and is granted after advertising.

    (3) The following are exempt from the above requirements:
    (i) Leases for land on which to construct new credit union 
facilities, under long-term leases. See DOD Directive No. 1000.10 for 
formula.
    (ii) Concession leases under Graduated Rental System.