[Code of Federal Regulations]
[Title 49, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR24.103]

[Page 210-211]
 
                        TITLE 49--TRANSPORTATION
 
          Subtitle A--Office of the Secretary of Transportation
 
PART 24_UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION FOR 
FEDERAL AND FEDERALLY ASSISTED PROGRAMS--Table of Contents
 
                   Subpart B_Real Property Acquisition
 
Sec.  24.103  Criteria for appraisals.

    (a) Standards of appraisal. The format and level of documentation 
for an appraisal depend on the complexity of the appraisal problem. The 
Agency shall develop minimum standards for appraisals consistent with 
established and commonly accepted appraisal practice for those 
acquisitions which, by virtue of their low value or simplicity, do not 
require the in-depth analysis and presentation necessary in a detailed 
appraisal. A detailed appraisal shall be prepared for all other 
acquisitions. A detailed appraisal shall reflect nationally recognized 
appraisal standards, including, to the extent appropriate, the Uniform 
Appraisal Standards for Federal Land Acquisition. An appraisal must 
contain sufficient documentation, including valuation data and the 
appraiser's analysis of that data, to support his or her opinion of 
value. At a minimum, a detailed appraisal shall contain the following 
items:
    (1) The purpose and/or the function of the appraisal, a definition 
of the estate being appraised, and a statement of the assumptions and 
limiting conditions affecting the appraisal.
    (2) An adequate description of the physical characteristics of the 
property being appraised (and, in the case of a partial acquisition, an 
adequate description of the remaining property), a statement of the 
known and observed encumbrances, if any, title information, location, 
zoning, present use, an analysis of highest and best use, and at least a 
5-year sales history of the property.
    (3) All relevant and reliable approaches to value consistent with 
commonly accepted professional appraisal practices. When sufficient 
market sales data are available to reliably support the fair market 
value for the specific appraisal problem encountered, the Agency, at its 
discretion, may require only the market approach. If more than one 
approach is utilized, there

[[Page 211]]

shall be an analysis and reconciliation of approaches to value that are 
sufficient to support the appraiser's opinion of value.
    (4) A description of comparable sales, including a description of 
all relevant physical, legal, and economic factors such as parties to 
the transaction, source and method of financing, and verification by a 
party involved in the transaction.
    (5) A statement of the value of the real property to be acquired 
and, for a partial acquisition, a statement of the value of the damages 
and benefits, if any, to the remaining real property, where appropriate.
    (6) The effective date of valuation, date of appraisal, signature, 
and certification of the appraiser.
    (b) Influence of the project on just compensation. To the extent 
permitted by applicable law, the appraiser shall disregard any decrease 
or increase in the fair market value of the real property caused by the 
project for which the property is to be acquired, or by the likelihood 
that the property would be acquired for the project, other than that due 
to physical deterioration within the reasonable control of the owner.
    (c) Owner retention of improvements. If the owner of a real property 
improvement is permitted to retain it for removal from the project site, 
the amount to be offered for the interest in the real property to be 
acquired shall be not less than the difference between the amount 
determined to be just compensation for the owner's entire interest in 
the real property and the salvage value (defined at Sec.  24.2) of the 
retained improvement.
    (d) Qualifications of appraisers. (1) The Agency shall establish 
criteria for determining the minimum qualifications of appraisers. 
Appraiser qualifications shall be consistent with the level of 
difficulty of the appraisal assignment. The Agency shall review the 
experience, education, training, and other qualifications of appraisers, 
including review appraisers, and utilize only those determined to be 
qualified.
    (2) If the appraisal assignment requires the preparation of a 
detailed appraisal pursuant to Sec.  24.103(a), and the Agency uses a 
contract (fee) appraiser to perform the appraisal, such appraiser shall 
be certified in accordance with title XI of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (12 U.S.C. 3331 
et seq).
    (e) Conflict of interest. No appraiser or review appraiser shall 
have any interest, direct or indirect, in the real property being 
appraised for the Agency that would in any way conflict with the 
preparation or review of the appraisal. Compensation for making an 
appraisal shall not be based on the amount of the valuation. No 
appraiser shall act as a negotiator for real property which that person 
has appraised, except that the Agency may permit the same person to both 
appraise and negotiate an acquisition where the value of the acquisition 
is $2,500, or less.

[54 FR 8928, Mar. 2, 1989, as amended at 57 FR 33266, July 27, 1992; 57 
FR 53295, Nov. 9, 1992; 64 FR 7132, Feb. 12, 1999]