1 Welcome to the International Right of Way Association’s Course 100 Principles of Land Acquisition 100-PT – Revision 2 – CAN

2 Introductions Who we are… What we do… Where we do it… How long we’ve been doing it… Our goals for the course...

3 Objectives (1) At the conclusion of the four days, you will be able to... define real property law terms and concepts. apply the terms and concepts to right of way acquisition discuss the effects of a public project on the environment. recognize some of the major Canadian environmental acts. explain the types of environmental studies

4 Objectives (2) At the conclusion of the four days, you will be able to... describe and demonstrate the three view concept of engineering plans. understand and discuss the significance of property descriptions and the difference types used demonstrate a basic understanding of the valuation process and the role of the appraiser in the acquisition process

5 Objectives (3) At the conclusion of the four days, you will be able to... discuss right of way negotiation, including its various components from preparation to closing express a basic understanding of relocation assistance express a basic understanding of property management concepts

6 Housekeeping

7 Schedule Day One and Day Two (1) 8:00 - 8:30Introductions, Etc. 8: :00Property Law Concepts 1:00 - 4:45Environmental Concerns 8:00 - 8:15Recap 8: :00Property Descriptions 1:00 - 4:45Appraisal

8 Schedule Day Three and Day Four (2) 8:00 - 8:15Recap 8: :15Appraisal 10:30 - 4:45Negotiation 8:00 - 8:15Recap 8: :15Relocation Assistance 10:30 - 2:45Property Management 3:30 - 5:00Exam

9 Property Law Concepts

10 Objectives Property Law Concepts define real property law terms and concepts apply the terms and concepts to right of way acquisition

11 The Government Executive Legislative Judicial

12 Types of Laws Common law evolved from early court decisions Civil law based on written codes or laws

13 The Constitution Federal Provincial

14 Property Tangible items of value that can be touched Intangible items of value that are not tangible

15 Real Estate, Real Property Real estate is the physical land and appurtenances attached to the land Real property is all interests, benefits and rights inherent in the ownership of the physical real estate

16 Personal Property, Fixtures Personal property refers to the movable items that are not a permanent part of the real estate Fixtures are items that were originally personal property but which have become part of the real estate

17 Estates Fee Simple Estate Life Estate Lease Interests

18 Other “Rights” Easements Profits a Prendre Covenants Running with the Land Prescriptive Rights Licenses/Permits

19 Easement An easement is a non-possessory interest one has in the property of another for a specific purpose.

20 Types of Ownership Owner in Severalty Concurrent Ownership Joint Tenancy Tenancy in Common

21 Land Recording Systems Registry System Land Titles System

22 Contracts (1) A contract is an agreement between parties, creating an obligation for which the law provides a remedy for breach.

23 Contracts (2) Mutual consent or agreement Competent parties Lawful consideration Lawful subject matter

24 Environmental Concerns

25 Objectives Environmental Concerns You will be able to… discuss the effects, both beneficial and adverse, of a public project on the environment, and learn of ways to minimize adverse impacts recognize some of the major Canadian environmental acts explain the types of environmental studies and what each type hopes to achieve

26 Environment Environment is the combination of conditions that affect and influence the growth, development, and survival of living things.

27 Common Law and the Environment Nuisance Restrictive Deed Covenant A deed clause that binds a party to do or not to do something. It "runs with the land.” A condition that unduly interferes with the use or enjoyment of land.

28 Environmental Legislation Canada Wildlife Act Canada Water Act Fisheries Act Forestry Act Canada Environmental Assessment Act Canada Environmental Protection Act Species at Risk Act Numerous Provincial Environment Acts

29 Environmental Review Environmental Assessment The environmental review is a review and decision process for evaluating the impact that actions will have on the environment An environmental assessment is an action to determine and manage risks associated with the acquisition of property that is environmentally impacted

30 Environmental Assessment Incidental Screening Environmental Site Assessments Phase I Phase II Phase III

31 The Project

32 Day One Recap Today, we... defined real property law terms and concepts. Applied the terms and concepts to right of way acquisition discussed the effects of a public project on the environment. Recognized some of the major Canadian environmental acts. Explained the types of environmental studies

33 Day Two Today, we will... describe and demonstrate the three view concept of engineering plans. understand and discuss the significance of property descriptions and the difference types used start to demonstrate a basic understanding of the valuation process and the role of the appraiser in the acquisition process

34 Property Descriptions

35 Objectives Property Descriptions describe and demonstrate the three view concept of engineering plans understand and discuss the significance of property descriptions and the difference types used

36

37 Three View Concept Plan View Profile View Cross Section View

38 Plan View Imperial

39 Plan View Metric

40 Profile View

41 Cross section View

42 Property Descriptions Plane Coordinate Systems Metes and Bounds Descriptions Dominion Lands Survey System Subdivision Descriptions Centreline Point

43 Metes and Bounds

44 Bearings

45 Dominion Lands Survey System (1)

46 Dominion Lands Survey System (2)

47 Dominion Lands Survey System (3)

48 Dominion Lands Survey System (4)

49 Dominion Lands Survey System (5)

50 Subdivision Descriptions

51 Centreline

52 Point

53 Appraisal

54 Objectives Appraisal demonstrate a basic understanding of the valuation process and the role of the appraiser in the acquisition process

55 Appraisal An appraisal is a formal opinion of value prepared as a result of a retainer intended for reliance by identified parties for which the appraiser assumes responsibility

56 D.U.S.T. (Factors that create value) Demand: The desire or need for real estate. Utility: Usefulness. Scarcity: The supply of real estate in relation to demand. Transferability: Title must be able to pass.

57 Market Value Market value is the most probable price which a property should bring in a competitive and open market as of a specific date under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price paid is not affected by undue stimulus.

58 Value Principles (Principle of Substitution) When several similar or commensurate commodities, goods, or services are available, the one with the lowest price attracts the greatest demand and widest distribution.

59 Value Principles (Principle of Supply and Demand) The price of a good or service varies directly with demand and inversely with supply.

60 Value Principles (Principle of Anticipation) The expectation of future benefits creates value.

61 Value Principles (Principle of Contribution) The value of a particular component is measured by its contributory value to the property, or the amount of its absence detracts from the whole.

62 Valuation Process Appraisal Problem Definition Scope of Work Data Collection and Property Descriptions Data Analysis Land Value Opinion Three Approaches to Value Reconciliation and Final Value Opinion Defined Value Opinion Report

63 Valuation Process Highest and Best Use The reasonably probable and legal use that is physically possible, appropriately supported, and financially feasible, and that results in the highest value. Physically possible? Legally permissible? Financially feasible? Maximally productive?

64 Valuation Process Three Approaches to Value Cost Approach Direct Comparison Income Approach

65 Valuation Process Cost Approach Develop a value opinion for the land Estimate the cost new of the improvement Deduct depreciation Add land value opinion to the depreciated improvement value

66 Valuation Process Direct Comparison Approach Research the market for comparable data Develop relevant units of comparison Compare the sales to the subject and adjust for dissimilarities Reconcile the value indications into a final value opinion

67 Day Two Recap Today, we... described and demonstrated the three view concept of engineering plans. understood better and discussed the significance of property descriptions and the difference types used started to demonstrate a basic understanding of the valuation process and the role of the appraiser in the acquisition process

68 Day Three Today, we will... finish discussing the valuation process and the role of the appraiser in the acquisition process discuss right of way negotiation, including its various components from preparation to closing

69 Valuation Process Income Approach The conversion of income into value through a rate or a ratio. Direct Capitalization Yield Capitalization

70 Valuation Process Income Approach Estimate the subject’s annual potential gross income Determine a vacancy and bad debt allowance Subtract the vacancy and bad debt allowance from the potential gross income Estimate annual property expenses and subtract the expenses from the effective gross income to arrive at the net operating income Develop a capitalization rate Convert the net operating income into value

71 Valuation Process Appraisal Problem Definition Scope of Work Data Collection and Property Descriptions Data Analysis Land Value Opinion Three Approaches to Value Reconciliation and Final Value Opinion Defined Value Opinion Report

72 Partial Acquisitions (1) Larger parcel is the total property before the taking. Title Use Contiguity or proximity Value of the part taken is determined by multiplying the quantity taken times the before unit value of the item

73 Partial Acquisitions (2) Injurious affection represents the loss in value to the remainder property as a result of a partial acquisition. Benefits to the remainder property represent the increase in value to the remainder property as a result of a partial acquisition.

74 Negotiation

75 Objectives Negotiation discuss right of way negotiation, including its various components from preparation to closing

76 Negotiation … the process by which two or more people resolve differences to reach a mutually acceptable agreement.

77 Conditions Necessary... Issues must be negotiable Parties must be willing and able to negotiate Parties must trust each other

78 Placing confidence in another, based on that person’s character, ability, strength, or truthfulness Trust

79 Roles Agency Property Owner Taxpayer/Ratepayer Acquisition Team Problem Solver Facilitator Closer Other

80 Types of Negotiations Integrative Bargaining Attitudinal Intra-agency

81 “Win-Win” Mutually beneficial outcomes Inquiry Collaborative Integrative

82 Bargaining “Win-Lose” “Zero-Sum” Advocates positions Compromise

83 Attitudinal Trust Common ground Shared frame of reference

84 Intra-agency Intra-organization

85 Characteristics (1) Credibility Expertness Trustworthiness Power/Dynamism

86 Power Legitimate Reward Coercive Reverent Charismatic Expertise Situation Information

87 Characteristics (2) Courage Empathy Integrity/Ethics Patience

88 Funnel Technique I. Information Getting II. Information Giving III. Problem Census IV. Problem Solving V. Closing IV. Problem Solving

89 A Plan Analyze Develop Optimize Incorporate “Rules” BATNA

90 Day Three Recap Today, we... finished discussing the valuation process and the role of the appraiser in the acquisition process discussed right of way negotiation, including its various components from preparation to closing

91 Day Four Today, we will... express a basic understanding of the federal laws related to the relocation of residential and business occupants express a basic understanding of property management concepts review the course and take an exam

92 Relocation Assistance

93 Objectives Relocation Assistance express a basic understanding of residential relocation assistance; specifically equivalent reinstatement and disturbance damages

94 Monetary Assistance Home for a home Equivalent reinstatement Disturbance damages Additional compensation

95 Non-residential Relocation Assistance Equivalent reinstatement Disturbance damages

96 Property Management

97 Objectives Property Management Express a basic understanding of property management concepts

98 Property Management … the process of maintaining and creating value in real property consistent with the owner’s objectives.

99 Asset Management Involves… Fiscal Management Physical Management Administrative Management

100 Property/Asset Management Goals Meet agency expectations Ensure performance Improve capacity Reduce vacancy Increase revenue Enhance value Provide flexibility Increase social/community benefits

101 Inventories General Information Property Classifications

102 Objectives (1) At this point, you are able to... define real property law terms and concepts. Apply the terms and concepts to right of way acquisition discuss the effects of a public project on the environment. recognize some of the major Canadian environmental acts. explain the types of environmental studies.

103 Objectives (2) At this point, you are able to... describe and demonstrate the three view concept of engineering plans. understand and discuss the significance of property descriptions and the difference types used demonstrate a basic understanding of the valuation process and the role of the appraiser in the acquisition process

104 Objectives (3) At this point, you are able to... discuss right of way negotiation, including its various components from preparation to closing express a basic understanding of residential relocation assistance, specifically equivalent reinstatement and disturbance damages express a basic understanding of property management concepts

105 Thank you! 100-PT – Revision 2 – CAN