Land and Property Acquisition

When the Town of Holly Springs needs to improve or relocate roads, water or sewer lines, greenways, and other facilities, sometimes private property must be purchased.

Safeguards exist for both the property owners, from whom the necessary land must be acquired, and for the taxpayers, who pay for the improvements.

Land & Property Acquisition Process

Every property and property owner’s situation is unique. Once the design of a project is determined and the impacts of the project are known, you will be contacted by the Town’s land acquisition agent. They will explain the potential impacts to your property and answer your questions to the best of their ability. In general, one of the following situations will apply:

Partial Acquisition

A portion of your property is needed. When construction impacts may occur on your property, such as changes to driveways, landscaping, irrigation, or fencing, the Town may choose to have the project contractor repair those items, or the Town may pay you directly an amount that is needed to repair any remaining impacts made by the project.

Full Acquisition

Your entire property is needed for the project.

Relocation

In the event that any acquisition requires a resident to relocate, the Town of Holly Springs will assist in identifying a comparable replacement property and pay for eligible moving costs, such as packing, storage, and shipping. The relocation payment is separate from the acquisition of the property itself. Tenants of rental properties may be eligible for relocation benefits.

Appraisal and Fair Compensation

Whether a portion or all of the property is needed for the project, you as the property owner are entitled to receive fair market value for the property. The law defines fair market value as the amount of money a willing buyer will purchase a property for, and a willing buyer will sell a property for, when neither party is compelled to do so. Therefore, the concept of fair market value in the case of a Town-initiated acquisition may be difficult to determine because you as the property owner may not want to sell, and the Town may not want to purchase, but both parties must do so. The Town engages licensed professional appraisers who are neutral parties to assist in this process. The Town of Holly Springs will offer to acquire your property based on fair market value, determined by other property sales in the area, location and condition of the property, and the opinions of a licensed real estate appraiser.

Negotiations

The Town will negotiate with the landowners to purchase the land at the amount the Town determines to be fair market value of the legal interests taken. This negotiation may involve direct communication with the landowners or their representatives, and it may also involve legal mediation if necessary.

Agreement and Purchase

Once an agreement is reached on the sale price and terms, the Town will proceed to purchase the land. This involves drafting and signing a purchase agreement or contract, transferring ownership, and making the necessary payments.

Property Outside the Construction Area

The Town of Holly Springs does not compensate for indirect effects such as visual impacts, noise, or increased traffic outside of the construction area.

Common Terms Used in Acquiring Real Property

Acquisition

Acquisition is the process of gaining ownership or control of real property (real estate) or an interest in real property. 

Agency

An agency can be a governmental organization (federal, state, or local) or a nongovernmental organization (such as a utility company).

Appraisal

An appraisal is a written statement prepared independently and impartially by a qualified appraiser. It sets forth an opinion of the defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.

Condemnation

Condemnation is the legal process of acquiring private property for public use or purpose through the government’s power of eminent domain. Condemnation usually is not used until all attempts to reach a mutually satisfactory agreement through negotiations have failed. An agency then goes to court to acquire the needed property. 

Easement

An easement is an interest in real property that affords a person the right to make limited use of another person’s real property. An easement may be exclusive or non-exclusive and may be perpetual or expressly limited in duration. 

Eminent Domain

Eminent domain is the right of the government to take private property for public use. In the United States, just compensation must be paid for any private property acquired. 

Fair Market Value

Fair market value is the price on the date of valuation that a property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts. 


Interest / Interest in Property / Property Interest

An interest is a right, title, or legal share in something. People who share in the ownership of real property have an interest in the property. Property interest is often referred to as “a bundle of sticks,” meaning there are many different components to the concept of land ownership. There are varying degrees of property interest, such as fee simple, easements, or a tenancy. Fee simple interests are the most comprehensive interest, where you “own” your property, often subject to other lesser interests of others such as easements, restrictive covenants, or a mortgage. Sometimes, the Town may need to acquire the fee-simple ownership, but often the Town only needs a lesser interest, such as an easement. In an easement situation, you are still the “underlying fee owner,” meaning you still own the land, pay taxes on it, and are responsible for maintenance above ground, but there may now be a legal right for the Town to place a water or sewer line underground, for example. 

Just Compensation

Just compensation is the price the Town must pay to acquire real property. The Town official must estimate the just compensation to be offered for the property. This amount may not be less than the amount established in the approved appraisal report, if one is obtained, as the fair market value for the property. 

Market Value or Fair Market Value

Market value is the sales price a willing and informed buyer would pay in cash to a willing and informed seller for a particular property when not otherwise forced to do so. 

Negotiation

Negotiation is the act of discussing an issue between two or more parties with competing interests with the aim of reaching an agreement. It is the process by which the Town and the property seller seek to reach an amicable agreement over the terms and conditions of the property sale. An offer may be made to purchase property in person or by mail, and the offer is discussed with the owner. 

Personal Property

In general, personal property is property that can be moved. It is not permanently attached to or part of the real property. Personal property is not to be included and valued in appraising real property.