You Received a Letter of Intent — What to Do Next
By Jeffrey Tibbals
When a state or federal agency sends a formal letter of intent, most landowners' first instinct is to negotiate directly. That instinct is understandable, and it is almost always a mistake. What follows the letter is a legal process governed by constitutional standards and statutory procedure, and the initial offer is rarely the just compensation the law requires.
Do not sign anything
The right of entry, temporary construction easement, and initial offer packet frequently arrive together. Each of these documents affects your rights. None of them should be signed without review by counsel experienced in condemnation.
Get an independent appraisal
The condemnor's appraisal is prepared for the condemnor. It typically undervalues highest-and-best-use, treats the remainder as unaffected, and applies methodologies favorable to the taker. An independent appraisal aligned with legal strategy establishes the range in which the case will actually be tried.
Preserve the record
Photograph the property as it exists today. Preserve site plans, surveys, income records, and any correspondence from the condemnor. The condition of the property before construction begins is often the single most important factual record in a partial-taking case.
Think in terms of trial
Condemnors settle for fair value when they believe the landowner is prepared to try the case. Every step in the first thirty days — from the appraiser retained to the survey commissioned — should be taken with the courtroom in mind.
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