La. Admin. Code tit. 70 § XVII-505

Current through Register Vol. 50, No. 11, November 20, 2024

Section XVII-505 - Scope of Work

A. The LDOTD, acquiring real property, has a legitimate role in contributing to the appraisal process, especially in developing the scope of work and defining the appraisal problem.

B. The scope of work and development of an appraisal under these requirements depends on the complexity of the appraisal problem.

C. The LDOTD has the responsibility to assure that the appraisals it obtains are:

1. relevant to its program needs;

2. reflect established and commonly accepted Federal and federally assisted program appraisal practice, and

3. as a minimum, complies with the definitions of "appraisal" in 49 CFR § 24.2 (a)(3).

D. They must also meet the five following requirements:

1. 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), including:

a. items identified as personal property;

b. a statement of the known and observed encumbrances, if any;

c. title information;

d. location;

e. zoning;

f. present use;

g. analysis of highest and best use; and

h. at least a five-year sales history of the property;

2. all relevant and reliable approaches to value consistent with established federal and federally assisted program appraisal practices. If the appraiser uses more than one approach, there shall be an analysis and reconciliation of approaches to value used that is sufficient to support the appraiser's opinion of value;

3. 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;

4. 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;

5. the effective date of valuation;

6. date of appraisal;

7. signature; and

8. certification of the appraiser.

E. The scope of work statement should include the purpose and/or function of the appraisal, a definition of the estate being appraised (if it is fair market value, include its applicable definition), and the assumptions and limiting conditions affecting the appraisal. The term scope of work defines the general parameters of the appraisal. It reflects the needs of the LDOTD and the requirements of federal and federally-assisted program appraisal practice. It should be developed cooperatively by the assigned appraiser and an LDOTD official who is competent to both represent the department's needs and respect valid appraisal practice. The scope of work statement should include the purpose and/or function of the appraisal, a definition of the estate being appraised, and if it is market value, its applicable definition, and the assumptions and limiting conditions affecting the appraisal. It may include parameters for the data search and identification of the technology, including approaches to value, to be used to analyze the data. The scope of work should consider the specific requirements in 49 CFR 24.103(a) (1) through (5) and address them as appropriate. Section 24. 103(a)(1) The appraisal report should identify the items considered in the appraisal to be real property as well as those identified as personal property. Section 24. 103(a)(2) All relevant and reliable approaches to value are to be used. However, where a department determines that the sales comparison approach will be adequate by itself and yield credible appraisal results because of the type of property being appraised and the availability of sales data, it may limit the appraisal assignment to the sales comparison approach. This should be reflected in the scope of work.

La. Admin. Code tit. 70, § XVII-505

Promulgated by the Department of Transportation and Development, Office of Real Estate, LR 33:1370 (July 2007).

AUTHORITY NOTE: Promulgated in accordance with R.S. 48:443.