Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property Table of Contents
Section 10.5
DISPOSAL OF SURPLUS REAL PROPERTY
TABLE OF CONTENTS
PURPOSE ............................................................................................................... 10-5-1
AUTHORITY ........................................................................................................... 10-5-1
REFERENCES ........................................................................................................ 10-5-1
DEFINITIONS ........................................................................................................ 10-5-2
10.5.1 Disposal Overview………………………………………………………. 10-5-4
10.5.2 Excess/Surplus Property Inventory Management .............................. 10-5-7
10.5.3 Estimate of Value Considerations ...................................................... 10-5-8
10.5.4 Advertising and Bidding Process ..................................................... 10-5-10
10.5.5 Conveyances to Governmental Entities ........................................... 10-5-12
10.5.6 Disposal of Nuisance Properties ...................................................... 10-5-15
10.5.7 Disposal of Property Originally Acquired as Replacement
Housing ............................................................................................ 10-5-16
10.5.8 Disposal of Buildings and Acceptance of Replacement
Buildings as Compensation ............................................................. 10-5-16
10.5.9 Concurrence by the Federal Highway Administration (FHWA)
and the Director, Office of Right of Way........................................... 10-5-17
10.5.10 Sale Closing ..................................................................................... 10-5-18
10.5.11 Disclaimers ...................................................................................... 10-5-20
10.5.12 Transfers of Property to the Florida Department of Environmental
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property Table of Contents
Protection ......................................................................................... 10-5-21
10.5.13 Relinquishments…………………………………………………………10-5-22
10.5.14 Required Documentation ................................................................. 10-5-24
TRAINING ............................................................................................................. 10-5-25
FORMS ................................................................................................................. 10-5-26
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-1
Section 10.5
DISPOSAL OF SURPLUS REAL PROPERTY
PURPOSE
To establish uniform procedures for the disposal of real property owned by the Florida
Department of Transportation (FDOT) that is not needed for the present or future
construction, operation, maintenance, or mitigation of a transportation facility; processing
a disclaimer renouncing FDOT’s interest, if any, in property for which it has no actual
interest; transferring property to the Florida Department of Environmental Protection
(FDEP) that was acquired for a transportation purpose but is no longer used or needed
for that purpose; and the disposal of buildings when FDOT accepts the construction of a
replacement building totally or partially in lieu of cash.
AUTHORITY
Section 20.23(3)(a), F.S.
Section 334.048(3), F.S.
REFERENCES
23 Code of Federal Regulations (CFR) § 710, Subpart D
23 CFR § 620.203(f), (i), and (j)
23 CFR § 810.106(a)(6)
23 CFR § 810.106(a)(4)
23 CFR § 1.23
23 CFR § 771
40 CFR §745
FAST Act §1423
Section 73.013, F.S.
Section 216.177, F.S.
Section 253.03(1), F.S.
Section 270.11, F.S.
Section 287.055, F.S.
Section 337.023, F.S.
Section 337.25, F.S.
Section 337.26, F.S.
Section 337.27, F.S.
Section 404.056(5), F.S.
Chapter 120, F.S.
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-2
EPA Pamphlet, Protect Your Family From Lead in Your Home
Right of Way Manual, Section 6.1, Appraisal and Appraisal Review
Right of Way Manual, Section 7.5, Legal Documents and Land Acquisition Closing
Right of Way Manual, Section 10.1, Inventory of Properties Acquired Through the Right
of Way Process; Rodent Control Inspections; Maintenance
Right of Way Manual, Section 11.1, Funds Management
Right of Way Manual, Section 11.3, Right of Way Records Management
Topic No. 000-010-004, Interests In Real Estate
Topic No. 350-090-315, Buildings, Land and Land Improvements – Fixed Capital Outlay
Topic No. 650-000-001, PD&E Manual, Part 1, Chapter 2
Form 650-050-12, Type 1 Categorical Exclusion Checklist
DEFINITIONS
Agent’s Price Estimate: An estimate by an FDOT Right of Way Agent/Specialist of the
amount of just and full compensation for a noncomplex, low value parcel ($50,000 or
less).
Appraisal: The report of a value estimate prepared in compliance with the Uniform
Standards of Professional Appraisal Practice (USPAP) and found to be a report that can
be used to make a prudent business decision. This can include a Value Finding for non-
complex, vacant land appraisals in accordance with Section 6.1, Appraisal and
Appraisal Review.
Disclaimer: A legal instrument that states that FDOT claims no interest in a property. A
disclaimer is used primarily to clear a cloud(s) on a title. The name of a grantee or
consideration is not required to validate this document. An appraisal is not necessary
and no compensation is paid to FDOT for the disclaimer.
Excess Property: FDOT-owned property, of any value, located outside of the current
operating right of way limits, but for which the District Secretary or designee has not
determined its future transportation use. This may include uneconomic remnants,
remnants created when design or construction requirements change after acquisition, and
remnants resulting from a voluntary acquisition of a remainder property.
Federal Aid Project: A FDOT construction project funded in whole or in part with federal
funds.
Governmental Entity: A federal, state, county, municipal or other entity that
independently exercises any type of federal, state, or local governmental function. This
term does not include nonprofit organizations.
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-3
High Value Properties: For inventory purposes, properties, whether stand-alone, (i.e.,
capable of independent development) or useful only to an abutting property owner, that
may return relatively high revenues upon disposal.
Inequitable: Unfairly or unjustly affecting an abutting property owner’s ultimate or
present use of real property to the extent it will hinder or prevent its use for such purposes.
Low Value Properties: For inventory purposes, properties, whether stand-alone or
useful only to an abutting property owner, that have little or no value due to their limited
utility because of unusual shape or size, etc.
Negotiated Sale: The direct sale to the public of surplus property owned by FDOT where
the sale price is reached by agreement between FDOT and the purchaser.
Nuisance Properties: Properties that require substantial maintenance (for example,
mowing, trash removal, security, etc.) or expose FDOT to a significant risk of liability.
Official File: Documentation required to be maintained by the District Right of Way Office
in a central location pursuant to Right of Way Manual, Section 11.3, Right of Way
Records Management.
Public Purpose Conveyance: A conveyance by FDOT to another governmental entity
for a social, economic, or environmental purpose that would benefit the general public.
Real Property: Land, including buildings, or other improvements permanently affixed to
the land. Throughout this procedure, real property may be referred to as “property”.
Relinquishment: Conveyance of a portion of a FDOT right-of-way or facility, either
acquired or constructed with federal funds, by the Department to another government
agency for highway use.
Surplus Property: FDOT-owned property, of any value, located outside of the current
operating right of way limits, that has no present transportation purpose and that the
District Secretary or authorized designee has determined, in writing, has no future
transportation purpose.
Transportation Corridor: Any land area designated by the state, a county, or a
municipality that is between two geographic points and which area is used or suitable for
the movement of people and goods by one or more modes of transportation and may
include areas necessary for management of access and securing applicable approvals
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-4
and permits. Transportation corridors shall contain, but are not limited to, the following:
(A) Existing publicly owned rights of way;
(B) All property or property interests necessary for future transportation
facilities, including rights of access, air, view, and light, whether public or
private, for the purpose of securing and utilizing future transportation rights
of way, including, but not limited to, any lands reasonably necessary now or
in the future for securing applicable approvals and permits, borrow pits,
drainage ditches, water retention areas, rest areas, replacement access for
landowners whose access could be impaired due to the construction of a
future facility, and replacement rights of way for relocation of rail and utility
facilities.
Transportation Facility: Any means for the transportation of people and property from
place to place that is constructed, operated or maintained in whole or in part from public
funds. Excluded from this definition are properties which must be administered by the
Board of Trustees of the Internal Improvement Trust Fund (T.I.I.T.F.) pursuant to Section
253.03(1), F.S., such as maintenance or sub-maintenance yards, soil labs, and FDOT’s
administrative and construction offices.
Uneconomic Remnant: A property that, as a result of a partial taking, has little or no
utility or value to the owner, as determined by the review appraiser.
10.5.1 Disposal Overview
10.5.1.1 If real property is not needed for the present or future construction, operation,
maintenance, or mitigation of a transportation facility, and is not located within a
transportation corridor and access to and from the property will not create a danger to the
traveling public, FDOT should dispose of the property. The property may be disposed of
by negotiation, sealed competitive bid, auction, right of first refusal afforded to a
governmental entity or any other means FDOT deems appropriate.
10.5.1.2 FDOT must duly advertise properties valued at more than $10,000, as outlined
in Section 10.5.4.1. For negotiated sales only, the advertisement serves as a notification
that the property will be sold by negotiation.
10.5.1.3 For negotiated sales, FDOT must begin negotiations at no less than the
property’s estimate of value. If negotiations result in an amount less than the property’s
estimate of value, the District Secretary or authorized designee must approve the
negotiated amount, which will be considered the market value for the property.
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-5
10.5.1.4 If real property is located within a transportation corridor, such property shall not
be disposed of until right of way limits for the corridor have been established.
10.5.1.5 Before the disposal of property acquired through the eminent domain process
on or after May 11, 2006, the previous property owner must be given the opportunity to
repurchase the property at the same price received from FDOT during the eminent
domain acquisition process. This requirement is applicable if less than ten (10) years
have elapsed since the property’s acquisition date. Properties, other than those
described in a filed petition of condemnation, are exempt from the ten (10) year ownership
requirement. Other exceptions to the ten (10) year requirement may be granted when
the purchaser is providing:
(A) Common carrier services;
(B) Roads or other rights of way open to the public for transportation, at no
charge or for a toll;
(C) Transportation related services, business opportunities and Turnpike
concessions on a toll road;
(D) Public or private utilities;
(E) Public infrastructure; or
(F) Uses that occupy, pursuant to a lease, an incidental part of a public property
or public facility for the purpose of providing goods and services to the
public.
10.5.1.6 Prior to declaring real property surplus, the district shall investigate the title to
the extent necessary to establish that FDOT has title to the property. After title has been
established, the district shall submit the proposed surplus for review by all appropriate
offices, for example, Drainage, Maintenance, Planning and Environmental Management,
Traffic Operations, and Surveying and Mapping. Comments from the reviewing offices
shall be forwarded to the District Secretary or authorized designee with a request for
surplus declaration.
10.5.1.7 Real property is declared surplus, in writing, by the District Secretary or
authorized designee. The district may then initiate actions to dispose of FDOT’s interest
in such real property. Current minimum permittable access must be determined by the
appropriate office prior to the advertising for disposal of the property.
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-6
10.5.1.8 On properties acquired with federal participation, the environmental
consequences of disposal of the property must be considered in accordance with 23 CFR,
Part 771. Disposal of surplus real property is listed as a Programmatic Categorical
Exclusion activity in accordance with Topic No. 650-000-001, PD&E Manual, Part 1,
Chapter 2, and must be addressed and documented by the District Environmental
Management Office. A copy of the completed Form 650-050-12, Type 1 Categorical
Exclusion Checklist or any other level of National Environmental Policy Act (NEPA)
documentation acceptable to FHWA shall be included in the official file.
10.5.1.9 Following the property’s official declaration as surplus, the District Right of Way
Manager (DRWM), or an authorized designee, shall determine whether FDOT or the
prospective purchaser will obtain the estimate of value in accordance with Sections
10.5.3.2 or 10.5.3.3.
NOTE: An estimate of value is not required for a public purpose conveyance in
accordance with Section 10.5.5. Property with a value of $50,000 or less may be valued
by an agent’s price estimate, staff appraiser or an independent appraisal and property
greater than $50,000 must be valued through an FDOT approved appraisal.
10.5.1.10 To assist in the marketing and disposal of surplus properties, the district may:
(A) Contract with a real estate broker. If a real estate broker is used, payment
terms shall be established in advance. The district may choose to pay on
a flat fee basis or a commission basis.
(B) Contract with an auction company, pursuant to Section 287.055, F.S.
When utilizing auction services, FDOT shall consider the following
provisions for inclusion in the contract:
(1) There is a reserve of funds that is, at a minimum, equivalent to the
property’s estimate of value;
(2) The contractor’s percentage of payment appropriately reflects any
responsibilities FDOT will assume (ex., conducting the closing,
activities listed in the scope of services and contract deliverables,
etc.);
(3) The frequency of adequate status reports;
(4) The manner in which the contractor will receive compensation for
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-7
services (i.e., will FDOT pay the contractor directly or will the
contractor retain a portion of the proceeds from the auction sale?);
and
(5) The percent of retainage FDOT will receive for the contractor’s non-
performance or deliverable deficiencies.
10.5.1.11 Interested parties shall be informed of the property’s current minimum
permittable access, and that no additional commitments to access will be made as a
condition of the sale.
10.5.1.12 For property disposed to governmental entities via a right of first refusal, FDOT
must follow the process outlined in Section 10.5.5.2.
10.5.1.13 For properties acquired with federal funds where the property’s potential use
may be for parks, conservation, recreation or related purposes, the district shall afford
local, state and federal agencies the opportunity to acquire. This is accomplished by
notifying FDEP that the property will be advertised for sale and providing the name of the
district contact person for the disposal. The notification should be sent to:
FDEP
Division of State Lands
3900 Commonwealth Blvd., M.S. 100
Tallahassee, FL 32399
10.5.1.14 The requirements of Topic No. 350-090-315, Buildings, Land and Land
Improvements – Fixed Capital Outlay, shall be met, as applicable.
10.5.2 Excess/Surplus Property Inventory Management
10.5.2.1 Real property acquired by FDOT that has been owned for ten (10) or more years
and is not located within a transportation corridor or the right of way of a transportation
facility, shall be evaluated as follows to determine the need for retaining ownership of the
property:
(A) If an evaluation has not been performed since the date of acquisition, one
must be performed within three (3) months after the tenth anniversary date
of the acquisition of the property. The district shall submit the proposed
surplus for review by appropriate offices such as Drainage, Maintenance,
Planning and Environmental Management, Traffic Operations, and
Surveying and Mapping to determine the need to retain ownership of the
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-8
property.
(B) If the property is not required for a present or future transportation purpose
including mitigation, the District Secretary or authorized designee may
declare the property surplus.
(C) The property should then be disposed of in accordance with this Section.
Property not needed for a current or future transportation purpose should not be retained
longer than the time necessary to initiate and complete the disposal process.
10.5.2.2 On a recurring basis, the district shall review and evaluate its inventory of excess
and surplus real properties, maintained pursuant to Right of Way Manual, Section 10.1,
Inventory of Properties Acquired Through the Right of Way Process; Rodent
Control Inspections; Maintenance, to determine if the properties should be retained for
a present or future transportation purpose. This evaluation may be performed every ten
(10) years or more frequently as determined by the district.
10.5.2.3 Documentation of the decisions made for each property in the inventory shall
be as follows:
(A) If the district determines that the property should be retained, the reason for
retention shall be documented and maintained in the official file or the
“Comments” section of the Excess Parcel page in the Right of Way
Management System (RWMS).
(B) If the property is not needed for a present or future transportation purpose,
documentation shall be maintained with the inventory and the property
should be declared surplus and disposed of in accordance with this
procedure.
10.5.3 Estimate of Value Considerations
10.5.3.1 If the estimated property value is $50,000 or less, the district may use an agent’s
price estimate, staff appraisal or an independent appraisal to establish its value.
However, if the property’s value is greater than $50,000, the estimate of value must be
determined by an FDOT approved appraisal. In instances where the Department is
disposing surplus property in specific exchange for property interests necessary to
facilitate a local government development order and/or Department permit approval,
provisions of Right of Way Manual, Section 7.12.1 (except subsections 7.12.1.4 and
7.12.1.7) and Right of Way Manual, Section 7.1.4 are applicable. The Developer
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-9
and/or permit applicant will be required to execute Form 575-030-12 documenting that its
property interest offered in exchange is donated at no cost to the Department regardless
of the interest’s value.
10.5.3.2 The following appraisal and appraisal review requirements shall apply when a
prospective purchaser initiates the disposal action:
(A) When the property has been officially declared surplus by the District
Secretary or designee, the District Right of Way Manager, or an authorized
designee, will determine whether the estimate of value will be obtained by
FDOT or the prospective purchaser.
(B) The district shall provide the prospective purchaser with a written notice
stating who is responsible for obtaining the estimate of value and that the
prospective purchaser must pay for it. The written notice must advise the
prospective purchaser that if he or she is to obtain the estimate of value it
must be a USPAP compliant appraisal, which must be prepared by an
appropriately certified appraiser, and that FDOT retains the right to obtain a
second estimate of value.
(C) The appraisal’s date of valuation shall reflect a current estimate of value as
of the date of execution of the conveyance document. If the appraisal needs
to be updated, FDOT shall pay for an updated appraisal unless the update
is required due to the prospective purchaser’s failure to perform.
(D) The appraisal shall be reviewed in accordance with Section 6.1.9.3:
(1) The appraisal reviewer shall return the appraisal to Property
Management and provide written documentation of the results of the
review.
(2) The district shall consider all appraisals in its negotiations. The sales
price shall be no less than the lowest acceptable appraisal; however,
the final sales price may be higher than the value in either acceptable
appraisal.
(3) If an appraisal is not acceptable, the appraisal reviewer shall return
it to Property Management with a memorandum citing the area(s) of
the appraisal that do not comply with USPAP. If the appraisal was
obtained by a prospective purchaser, Property Management shall
return the appraisal, with an explanation to the prospective
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-10
purchaser. If the prospective purchaser’s appraisal is determined
not to be an acceptable appraisal, then it shall not be considered in
the disposal process. The district may allow the prospective
purchaser an opportunity to submit corrections and changes to the
appraisal in order to make it acceptable.
NOTE: The review appraiser shall not issue instructions to, or require corrections and/or
additional support from, the prospective purchaser’s appraiser.
(E) If the prospective purchaser has obtained an appraisal in addition to an
original appraisal obtained by FDOT, the prospective purchaser shall forfeit
the cost of the appraisal. If the prospective purchaser has obtained the
original appraisal and negotiations do not result in a sale to the prospective
purchaser, the prospective purchaser shall forfeit the cost of the appraisal,
unless the property is subsequently sold to another party. In that case, the
cost of the original acceptable appraisal shall be reimbursed by the
acquiring party. If the district decides not to dispose of the property after
notifying the prospective purchaser to obtain an appraisal, the cost of the
prospective purchaser’s appraisal shall be reimbursed by the district.
10.5.3.3 The following appraisal and appraisal review requirements shall apply when
FDOT initiates the disposal action:
(A) The district shall obtain an estimate of value from an appropriately certified
appraiser.
(B) The appraisal’s date of valuation shall reflect a current estimate of value as
of the date of execution of the conveyance document. If the estimate of
value needs to be updated FDOT shall pay for the update.
(C) The appraisal shall be technically reviewed by a qualified FDOT employee.
(1) The appraisal reviewer shall provide a copy of the appraisal to
Property Management with written documentation of the result of the
review.
(2) If the appraisal is determined not to be acceptable, the appraisal
reviewer shall obtain corrections and/or additional support from the
fee appraiser to ensure an acceptable appraisal is obtained.
(D) If a fee appraiser is used, the cost of the appraisal shall be paid by FDOT.
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-11
If a sale occurs, the successful bidder shall refund the cost of the fee
appraisal to FDOT.
10.5.3.4 The purchaser may pay all costs associated with the closing, but the purchaser
must pay for the appraisal, if prepared by a fee appraiser.
10.5.4 Advertising and Bidding Process
10.5.4.1 FDOT may dispose of surplus property by bid after duly advertising in the
following manner:
(A) The advertisement shall run at least fourteen (14) calendar days prior to the
last day of the auction or the date of the bid opening. This time period is a
minimum requirement, but more notice may be afforded. The
advertisement shall run in a newspaper of general circulation in the area in
which the property is located and shall state the date, time, and place of the
auction’s ending or bid opening, a brief description of the property, the
property’s current minimum permittable access, the statutory requirement
to reserve oil, gas and mineral rights and where to obtain additional
information.
(B) The cost of obtaining any estimate(s) of value shall be included in the
advertisement, which shall also state that the cost(s) for estimate(s) of value
shall be in addition to the bid price. The cost(s) for the estimate(s) of value
shall be supported by an invoice.
(C) Before the last day of the auction or the date of the bid opening, every bidder
shall have the opportunity to inspect the property. The auction or bid
opening shall be conducted by the district office or an authorized
representative.
(D) All bidders shall be notified of their right to file a bid protest pursuant to
Chapter 120, F.S.
(E) The auction information notice or bid package shall include a statement that
the successful bidder shall pay all costs to record the conveyance of the
property in the county of record, and provide a copy of the recorded deed,
showing the book and page number and date of recordation, to FDOT within
thirty (30) days of the closing date. Alternatively, the district may collect all
costs to record the conveyance of the property in the county of record and
record the conveyance document within thirty (30) days of the closing date.
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-12
(F) A minimum bid may be specified. If specified, it shall not be less than the
estimate of value. If an estimate of value is used, it shall appear in the
advertisement with a statement that FDOT reserves the right to withdraw
the property if bids for the estimate of value or above are not received. If a
bid at or above the estimate of value is not obtained at the auction or bid
opening, the District Secretary or authorized designee may approve the
highest bid received, which will be considered the market value for the
property.
(G) At the option of the District Right of Way Manager, if the minimum bid is not
obtained at the first auction or bid opening, a second advertisement and
auction or bid opening is optional. If a specified minimum bid is not
obtained, the District Secretary or authorized designee may approve the
highest bid received which will be considered the market value for the
property.
(H) A nonrefundable deposit of at least ten (10) percent of the bid amount shall
be required of the successful bidder in the form of cashier’s check, money
order or other non-cancellable instrument at the time of the award of the
bid. Personal or business checks shall not be accepted.
(I) Full payment shall be made by the purchaser at closing with cash, cashier’s
check, money order or other non-cancellable instrument for the remaining
amount owed on the sale. The closing should occur within thirty (30)
calendar days from acceptance of the bid award.
(J) All payments, including the deposit, shall be forwarded to the District
Records and Funds Management Office with Form No. 575-060-02, Cash
Receipt Form, before the close of business on the next business day after
receipt of the payment.
(K) When the district receives the advertisement invoice from the newspaper,
the FDOT Purchasing Card may be used and the following shall be sent to
the District Records and Funds Management Office for processing in
accordance with Right of Way Manual, Section 11.1, Funds
Management.
10.5.4.2 FDOT shall prepare all necessary closing documents. The successful bidder
may pay all costs associated with the closing at the district’s discretion.
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-13
10.5.5 Conveyances to Governmental Entities
10.5.5.1 Real property may be conveyed to another governmental entity for a public
purpose without monetary consideration unless legislation or bond provisions provide
otherwise. If a public purpose conveyance involves no consideration, an estimate of
value is not required.
10.5.5.2 FDOT may offer a right of first refusal to the local government or other political
subdivision in the jurisdiction in which the parcel is located, city or county, pursuant to
Section 337.25, F.S. The following conditions shall apply:
(A) The local government shall have ten (10) working days to respond to the
district if it wants to acquire the property. If the local government wants to
acquire the property, the district shall halt all other actions until an
agreement can be reached with the local government or until it becomes
evident that an agreement will not be reached. If an agreement is not
reached, the property should be disposed of in accordance with this
procedure.
(B) If the local government identifies a public purpose for the property, the
property may be conveyed for no consideration. If no public purpose can
be identified, and the local government still wants to acquire the property, it
shall acquire the property at the value set forth by an FDOT approved
estimate of value.
(C) If an independent fee appraisal has been performed, the acquiring local
government shall reimburse the appropriate party for the cost of the
appraisal.
(D) A right of first refusal may not be offered for:
(1) Property where public sale would be inequitable to an abutting
owner, which may be sold by negotiation to the abutting owner who
reaches agreement with FDOT. However, the abutting owner must
provide evidence of title at his or her own cost. This evidence of title
shall be in the form of the last deed of record and an affidavit signed
by the owner attesting to the fact that he or she is the owner of the
abutting property. The affidavit shall be dated no more than six (6)
months prior to the date of execution of the conveyance document.
(2) Property donated to the state for transportation purposes where the
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-14
facility has not been constructed for a period of at least five (5) years
and no plans have been prepared for construction of the facility and
the property is not located in a transportation corridor. Donated
property may be reconveyed for no consideration to the original
donor or the donor’s heirs, successors, assigns, or representatives.
Note: If any portion of donated property is sold within two years from
the date the property was received, FDOT must file the IRS Form
8282, Donee Information Return, with the Internal Revenue
Service. A copy of the completed form must be provided to the donor
of the property.
(3) Property acquired specifically to provide replacement housing for
persons displaced by transportation projects may be sold by
negotiation to those displaced persons for whom the specific
property was acquired. FDOT shall receive no less than its
investment or market value, whichever is lower.
10.5.5.3 When transfers are made to a governmental entity for a public purpose for either
no consideration or for less than market value, the governmental entity shall furnish a
letter identifying the public purpose for the property from the agency head. If the
governmental entity consists of a group requiring consensus to take such action, the
district must receive a copy of the resolution confirming such consensus. The district
must obtain this documentation at any time prior to conveyance of the property.
10.5.5.4 If the real property to be conveyed was acquired for the Interstate System or
involves non-Interstate property on federal aid projects, the requirements of Section
10.5.9 shall apply.
10.5.5.5 On disposals at less than fair market value of property acquired with federal
participation, the district must clearly show that disposal for less than fair market value is
in the public interest for a social, environmental or economic purpose. This can be
accomplished by a statement of the public use of the property and the expected resulting
benefit to the public.
10.5.5.6 All public purpose conveyances for property acquired with federal funds require
a reverter clause in the conveyance document unless market value for the property is
obtained. When a public purpose conveyance document includes a reverter clause, an
appraisal is not required. The reverter clause shall cause all property rights to revert to
FDOT if the property is used by the acquiring governmental entity for other than a public
purpose. If the property is acquired with federal funds and a reverter clause is not
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-15
included in the public purpose conveyance document, an appraisal or estimate of value
is required and market value must be obtained.
10.5.5.7 At the district’s discretion, for property acquired with state funds, the public
purpose conveyance document may include a reverter clause, except in those cases
when full market value for the property is obtained, then a reverter clause would not be
required or appropriate.
10.5.5.8 If real property is conveyed for a public purpose, the acquiring governmental
entity shall pay all costs associated with the closing. FDOT shall prepare all necessary
closing documents.
10.5.5.9 Public Purpose Conveyance Report: Each district shall compile and submit
to the State Property Management Administrator an annual report of property conveyed
for public purpose during the reporting period. The reporting period shall be from July 1
st
of the previous year through June 30
th
of the current year. The report shall be due no
later than July 10
th
of each year. The report shall include an identification of each property
by item/segment number, parcel number(s), county, estimated value and size (in acres).
10.5.6 Disposal of Nuisance Properties
10.5.6.1 The district shall determine whether the property will require significant costs to
be incurred for maintenance or if continued ownership of the property exposes FDOT to
significant liability risks.
10.5.6.2 If a property is determined to be significantly costly to maintain or a significant
liability risk to the FDOT, the district may use the projected maintenance costs over the
next ten (10) years to offset the market value in establishing a value for disposal of the
property, even if the value is zero (0).
10.5.6.3 The official file shall be documented to include:
(A) Estimate of value;
(B) Memorandum prepared by a qualified FDOT employee documenting the
result of a review performed in compliance with Right of Way Manual,
Section 6.1, Appraisal and Appraisal Review, when applicable; and
(C) Written documentation establishing the property’s significant liability risk to
FDOT and the projected ten (10) year maintenance costs. If no significant
liability risk exists but maintenance costs are significant, the projected ten
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-16
(10) year maintenance costs should be established.
10.5.7 Disposal of Property Originally Acquired as Replacement
Housing
10.5.7.1 Property originally acquired specifically to provide replacement housing for
persons displaced by transportation projects may be sold to the original displacee for
either the current market value or FDOT’s investment in such property, whichever is less.
10.5.7.2 FDOT shall receive no less than market value if the sale is to anyone other than
the displaced person. Market value should be established in accordance with Section
10.5.3.
10.5.7.3 The cost of the appraisal, if any, shall be borne by the displaced person. If
someone other than the displaced person purchases the property, any cost of the
appraisal shall be reimbursed to the displaced person by the purchaser. Reference
should also be made to Section 10.5.3.2 regarding payment for the appraisal.
10.5.8 Disposal of Buildings and Acceptance of Replacement
Buildings as Compensation
10.5.8.1 When selling a building, FDOT may accept the construction of a replacement
building totally or partially in lieu of cash. A specific legislative appropriation is not
required.
10.5.8.2 This type of disposal/replacement requires the approval of the Executive Office
of the Governor prior to any advertisement for bids. The request for approval shall be
sent by the district to the Director, Office of Right of Way for forwarding, via the Secretary
of Transportation, to the Executive Office of the Governor.
10.5.8.3 Approval by the Executive Office of the Governor is subject to the notice, review,
and objection procedures under Section 216.177, F.S., as outlined below:
(A) Notice of action to be taken, either approval of disposal or replacement by
the Executive Office of the Governor shall be provided, in writing, to the
chair and vice chair of the Legislative Budget Commission at least fourteen
(14) days prior to the action referred to, unless a shorter period is approved
in writing by the chair.
(B) If the chair of the Legislative Budget Commission or the President of the
Senate and the Speaker of the House of Representatives timely advise, in
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-17
writing, the Executive Office of the Governor that the action exceeds the
delegated authority of the Executive Office of the Governor or is contrary to
legislative policy or intent, the Governor shall void such action and instruct
FDOT to change immediately its spending action or spending proposal until
the Legislative Budget Commission addresses the issue. The written
documentation shall indicate the specific reasons that an action or proposed
action exceeds the delegated authority or is contrary to legislative policy
and intent.
10.5.8.4 The bid requirements of this procedure shall apply. The advertisement or bid
specification package shall disclose that an asbestos survey and Operations and
Maintenance (O & M) Plan, if applicable, for FDOT’s building have been prepared and
are available for review prior to the bid opening.
10.5.8.5 The replacement building shall be consistent with the current and projected
needs of FDOT and the Department of Management Services, and shall be of equal
value, as determined by an appraisal, with FDOT’s building or supplemented with cash
to equal the appraised value. The appraisal and appraisal review requirements of this
procedure and Section 6.1, Appraisal and Appraisal Review, shall apply.
10.5.9 Concurrence by the Federal Highway Administration
(FHWA) and the Director, Office of Right of Way
10.5.9.1 On certain properties acquired for the Interstate System, written concurrence to
dispose of the property shall be obtained from FHWA prior to advertising or negotiating
for the disposal. This concurrence is required on properties located on the Interstate
System within the right of way lines on the approved right of way maps or when a change
in the access control line will occur. Requests, including complete supporting
documentation, shall be submitted to the State Property Management Administrator, for
FHWA concurrence. Concurrence is not required when the property to be disposed of is
an uneconomic remnant that has not been incorporated within the approved right of way
limits. The request shall be in accordance with 23 CFR, Part 710, Subpart D in reference
to final acceptance of the project.
10.5.9.2 The disposal of all property located on the Interstate System outside the right of
way lines on the approved right of way maps or non-Interstate property on federal aid
projects must be approved by the Director, Office of Right of Way, prior to advertising or
negotiating for the disposal. Requests, including complete supporting documentation,
shall be submitted to the State Property Management Administrator, for the Director’s
approval.
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-18
10.5.9.3 Requests for FHWA or the Director, Office of Right of Way, concurrence shall
include the following documentation:
(A) Federal aid number;
(B) An explanation as to why the property is not needed;
(B) A right of way map marked to show the location of the property to be
disposed.
NOTE: The map must provide enough detail to allow the property to be
physically located, or additional maps may be submitted to locate the
property;
(D) When available, marked construction plans that show the property in
relation to construction features and remaining right of way (photographs
and other methods of depicting or explaining the construction features in
relation to the subject property may be used if construction plans are not
available);
(E) Documentation of the offices included in the routing and comments made
by the offices with the resolution of the comments, and declaration of
surplus by the District Secretary or authorized designee;
(F) Documentation of the determination of estimated value except for public
purpose disposals;
(G) If the disposal is for a public purpose for less than estimated value, a copy
of the resolution from the governing body or letter signed by the head of the
agency requesting the public purpose disposal. If the resolution has not
been executed, submit a copy of the language of the resolution;
(H) A copy of the proposed conveyance document (ex., deed, agreement, etc.),
along with verification of its review by the Office of General Counsel, per
Topic No. 000-010-004, Interests in Real Estate. If the disposal is for a
public purpose for less than market value, the quit claim deed must include
a reverter clause; and
(I) Form 650-050-12, Type 1 Categorical Exclusion Checklist per NEPA
assignment.
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-19
10.5.10 Sale Closing
10.5.10.1 FDOT shall prepare necessary closing documents. If FDOT agrees to use
closing documents prepared by the prospective purchaser, the Office of the General
Counsel shall review and approve all such documents and the legal description in the
deed must be reviewed by the District Right of Way Surveyor.
10.5.10.2 The deed must be prepared in accordance with the requirements of Right of
Way Manual, Section 7.5, Legal Documents and Land Acquisition Closing, as
applicable. The district shall conduct the closing as follows:
(A) The district shall prepare and have executed a deed to convey the property.
The deed shall not contain any warranties of title to the conveyed property,
for example a warranty deed shall not be used, per Section 337.26(2), F.S.
(B) The deed shall be executed only by the District Secretary. The seal of
FDOT shall be affixed to the deed.
(C) Obtain or waive a reservation of oil, gas, and other mineral interests as
follows:
(1) The deed, for conveyances other than those described in Section
337.25(4)(a)(b), F.S., conveyance of property donated for
transportation purposes, or public purpose conveyances to
governmental entities, shall include a reservation of oil, gas, and
other mineral interests to FDOT, pursuant to Section 270.11, F.S.,
unless such reservation is waived as described below.
(2) If the applicant petitions for the waiver of the reservation, and
provides written justification, the waiver may be approved, in writing,
by the District Secretary or authorized designee.
(3) Notice of the reservation shall be made in the advertisement for bids
or at the start of negotiations. The language reserving the interests
shall be embodied in the deed unless the reservation waiver request
has been approved.
10.5.10.3 At closing, FDOT shall receive from the purchaser the balance due on the sale
in the form of cashier’s check, money order, or other non-cancellable instrument.
Personal or business checks shall not be accepted.
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-20
10.5.10.4 If the property to be disposed of includes one or more buildings, either prior to
or at closing, the purchaser shall be provided with and acknowledge receipt of Form No.
575-060-22, Radon Gas Notification. This notification is required per Section 404.056
(5), F.S.
10.5.10.5 If the property being disposed of was constructed prior to 1978, at least ten
(10) days prior to closing, the purchaser shall be provided with and acknowledge receipt
of Form No. 575-060-37, Radon Gas Notification and Disclosure of Lead-Based
Paint Hazards Warning, and a copy of the EPA Pamphlet, Protect Your Family from
Lead in Your Home in accordance with 40 CFR, Part 745. Additionally, the purchaser
shall have the opportunity to conduct a risk assessment or inspection for the presence of
lead-based paint or to waive that right on the form. A copy of this form shall be retained
in the official file.
10.5.10.6 At closing, the purchaser shall be provided:
(A) Form No. 575-060-02, Cash Receipt Form;
(B) A deed; and
(C) A copy of the signed Form No. 575-060-22, Radon Gas Notification, or
Form No. 575-060-37, Radon Gas Notification and Disclosure of Lead-
Based Paint Hazards Warning, as applicable.
10.5.10.7 If Form No. 575-030-16, Closing Statement is used, it shall be prepared in
accordance with Right of Way Manual, Section 7.5, Legal Documents and Land
Acquisition Closing.
10.5.10.8 No credit to federal funds is required. All revenue collected shall be deposited
in the State Transportation Trust Fund, except Turnpike Enterprise revenues, which shall
be deposited into the Turnpike General Reserve Trust Fund. Revenues will be re-
allocated to the districts in accordance with Right of Way Manual, Section, 11.1.4,
Revenues To Be Returned To Districts.
10.5.10.9 The following shall be forwarded to the District Records and Funds
Management Office:
(A) Form No. 575-060-02, Cash Receipt Form; and
(B) Payment balance received from the purchaser.
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-21
10.5.10.10 A copy of the conveyance document shall be forwarded to the District Right
of Way Surveying and Mapping Office. If not contained in the conveyance document, the
Item/Segment Number, Managing District, and parcel number shall be included.
10.5.11 Disclaimers
10.5.11.1 When a property owner requests FDOT to disclaim any interest in real property,
the district may:
(A) Determine if FDOT holds or has ever held a real property interest in the
property that is the subject of the request for disclaimer;
(B) Require the property owner to provide, at his/her own expense, evidence in
the form of a current title search and/or opinion of title showing that FDOT
holds or has ever held a real property interest in the property that is the
subject of the request for disclaimer.
If no evidence of an FDOT interest in the subject property is found, the District Secretary
may execute either a disclaimer or a quitclaim deed to the property.
10.5.11.2 If it is determined that FDOT has had an interest in the property that is no
longer valid (such as an expired temporary easement), the district should provide a
quitclaim deed to the property that is the subject of the property owner’s request.
10.5.11.3 If it is determined that FDOT has a current interest in the property that is the
subject of the property owner’s request for a disclaimer, the district shall determine if it
should release the interest. If the interest is to be released, the district shall comply with
the disposal requirements of this section.
10.5.12 Transfers of Property to the Florida Department of
Environmental Protection (FDEP)
10.5.12.1 Title for property originally acquired by FDOT for a transportation use, which
has been converted to a non-transportation use, such as maintenance yard, soil lab,
satellite district office, etc., shall be transferred to the Board of Trustees of the Internal
Improvement Trust Fund (T.I.I.T.F.). For this type of transfer, the following shall be
provided to FDEP:
(A) An executed FDEP Title, Possession and Lien Affidavit;
(B) A certified survey, sketch and legal description;
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-22
(C) An environmental audit performed in accordance with FDEP guidelines. An
FDOT Professional Engineer or Professional Geologist may perform this
audit;
(D) An executed FDEP Environmental Affidavit; and
(E) An executed quitclaim deed.
NOTE: No appraisal is necessary for this type of transfer.
10.5.12.2 FDOT surplus property may be conveyed to FDEP. Whether FDOT or FDEP
initiates the proposed transaction, FDOT must provide only the pertinent parcel
information that is available. The conveyance may occur as follows:
(A) FDOT shall inform FDEP, in writing, that it has 90 calendar days to decide
whether to accept the property. If requested by FDEP, an extension may
be provided.
(B) If FDEP does not accept the property and no extension has been granted,
FDOT may dispose of the property in accordance with this procedure.
10.5.12.3 The requirements of Section 10.5.5 shall apply if the property is conveyed for
no consideration or for less than market value.
10.5.13 Relinquishments
10.5.13.1 If a relinquishment is to a Federal, State, or local government agency for
highway purposes, there need not be a charge to the said agency, nor in
such event any credit to Federal funds. If for any reason there is a charge,
the Department may retain the Federal share of the proceeds if used for
projects eligible under title 23 of the United States Code. Relinquishments
must be justified by the State's finding concurred in by the FHWA, that:
(A) The subject land will not be needed for Federal-aid highway purposes in
the foreseeable future;
(B) That the right-of-way being retained is adequate under present day
standards for the facility involved;
(C) That the release will not adversely affect the Federal-aid highway facility
or the traffic thereon;
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-23
(D) That the lands to be relinquished are not suitable for retention in order to
restore, preserve, or improve the scenic beauty adjacent to the highway
consonant with the intent of 23 U.S.C. 319 and Pub. L. 89-285, Title III,
sections 302-305 (Highway Beautification Act of 1965).”
10.5.14.1 On transportation facilities that were either acquired or constructed using
federal funds, FDOT may relinquish a portion of a highway right-of-way or
facility, including a park and ride lot, to a local government agency for
highway use in accordance with procedures set forth at 23 CFR 620.203(f),
(i), and (j). Compliance with Section 10.5.5 is required, as applicable.
10.5.14.2 Facilities that may be relinquished with the approval of the Federal Highway
Administrator include: 1) frontage roads or portions thereof located outside
the access control lines of a federal aid project constructed to serve as
connections between ramps to or from the federal aid project and existing
public roads or streets, and 2) ramps constructed to serve as connections
for interchange of traffic between the federal aid project and local roads or
streets.
10.5.14.3 FHWA or State ROW Director concurrence shall be implemented per
10.5.9.
10.5.14.4 A local governmental agency may submit a proposal to the district for review
for non-Interstate System rights-of-way. The district will follow the
requirements of the FHWA-FDOT Oversight and Stewardship Agreement.
10.5.14.5 Prohibited uses of park and ride lots:
(A) The park and ride lot may not be conveyed to a private party. It must remain
in public ownership and any use and change in ownership must have prior
FHWA approval per 23 CFR 810.106(a)(6).
(B) Commercial use of Interstate System right-of-way is precluded except the
sale of appropriate articles through vending machines, per 23 USC 111.
(C) Any modification of the park and ride lot facilities that could impair the
highway or interfere with the free and safe flow of traffic requires FHWA
approval per 23 CFR 1.23.
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-24
10.5.14 Required Documentation
The following information shall be compiled by the district and retained in the official file:
(A) The District Secretary’s or authorized designee’s written approval for the
property to be declared surplus and conveyed;
(B) Complete name and address of applicant;
(C) A right of way map marked to depict the area to be disposed;
(D) Legal description of the property to be conveyed;
(E) Title evidence, if applicable;
(F) Documentation, such as notification and related correspondence, of the
local government’s right of first refusal, if applicable;
(G) A copy of the advertisement for a negotiated sale or for bids, if applicable;
(H) A copy of the bid tabulation sheet and other documents related to the sale,
if applicable;
(I) If disposing of a high maintenance or liability (nuisance) property, written
documentation establishing the property’s significant liability risk to FDOT
and the projected ten (10) year maintenance costs. If no significant liability
risk exists but maintenance costs are significant, the projected ten (10) year
maintenance costs should be established;
(J) A copy of the signed Form No. 575-060-22, Radon Gas Notification, if
applicable;
(K) A copy of the signed Form No. 575-060-37, Radon Gas Notification and
Disclosure of Lead-Based Paint Hazards Warning, if applicable;
(L) A copy of the appraisal(s) or agent’s price estimate(s), if applicable;
(M) A memorandum prepared by a qualified FDOT employee stating the results
of a review of the appraisal in accordance with Right of Way Manual,
Section 6.1, Appraisal and Appraisal Review, if applicable;
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-25
(N) Appraisals agent’s price estimate(s) or written estimates if goods, services,
or real property are received as consideration in lieu of cash;
(O) For oil, gas, and other mineral interest reservation waivers, a copy of the
purchaser’s reservation waiver request including written justification and the
District Secretary’s or authorized designee’s signed approval of the waiver;
(P) For public purpose conveyances and relinquishments, a copy of the local
government or other political subdivision’s adopted resolution or a copy of
the letter signed by the agency head requesting the property for use by that
agency;
(Q) For disclaimer requests, a copy of the applicant’s request, results of the title
search, and, if applicable, a copy of the disclaimer;
(R) For transfers of properties converted to a non-transportation use to FDEP,
copies of executed FDEP Title, Possession and Lien Affidavits, survey
sketches, environmental audits, FDEP Environmental Affidavits, and
executed deeds;
(S) For transfers of FDOT surplus property to FDEP, copies of correspondence
notifying FDEP of the availability of surplus property, copies of requests for
extensions, approvals or denials of the requested extensions, and copies of
correspondence from FDEP accepting or refusing the transfer;
(T) For disposal of properties acquired with federal funds, copies of FHWA’s
concurrences with the disposals of properties acquired for the Interstate
System and copies of the Director’s, Office of Right of Way, concurrences
for all other disposals;
(U) A copy of the executed deed;
(V) Copies of Form No. 575-060-02, Cash Receipt Form; and
(W) Form 650-050-12, Type 1 Categorical Exclusion Checklist per NEPA
assignment.
TRAINING
Right of Way Program participants will be trained in the activities required by this
procedure during the Property Management segment of the FDOT Fundamentals of Right
of Way Course.
Topic No. 575-000-000
Right of Way Manual Effective: April 15, 1999
Property Management Revised: July 24, 2017
Disposal of Surplus Real Property 10-5-26
FORMS
The following forms are available through the FDOT Infonet and Internet at:
http://infonet.dot.state.fl.us/tlofp/
http://www.dot.state.fl.us/proceduraldocuments/forms.shtm
575-030-16, Closing Statement
575-060-02, Cash Receipt Form
575-060-22, Radon Gas Notification
575-060-37, Radon Gas Notification and Disclosure of Lead-Based Paint Hazards
Warning
The following form may be obtained from the Internal Revenue Service (IRS) on the
internet at:
http://www.irs.gov/pub/irs-pdf/f8282.pdf
IRS Form 8282, Donee Information Return
The following forms may be obtained from Florida Department Environmental Protection
at the following address:
Florida Department of Environmental Protection
Division of State Lands
3900 Commonwealth Blvd. Mail Station (M.S.) 100
Tallahassee, Florida 32399
Title, Possession and Lien Affidavit
Environment Affidavit
