[Title 32 CFR 644.46]
[Code of Federal Regulations (annual edition) - July 1, 2003 Edition]
[Title 32 - NATIONAL DEFENSE]
[Subtitle A - Department of Defense (Continued)]
[Chapter V - DEPARTMENT OF THE ARMY (CONTINUED)]
[Subchapter J - REAL PROPERTY]
[Part 644 - REAL ESTATE HANDBOOK]
[Subpart B - Appraisal]
[Sec. 644.46 - Easements.]
[From the U.S. Government Printing Office]


3242003-07-012002-07-01true644.46Sec. 644.46NATIONAL DEFENSEDepartment of Defense (Continued)DEPARTMENT OF THE ARMY (CONTINUED)REAL PROPERTYREAL ESTATE HANDBOOKAppraisal
Sec. 644.46  Easements.

    (a) Definition. An easement is a property right of specified use and 
enjoyment falling short of fee ownership. It follows that the value of 
an easement is less than the market value of fee title to the same 
portion of property (exclusive of severance damages to residual 
portions).
    (b) Measure of Value. The measure of compensation for an easement is 
the amount by which market value of the ownership is diminished by the 
imposition of the easement. This should be developed by use of the 
``before'' and ``after'' method of appraisal, the difference being the 
value of the taking.
    (c) Flowage Easements. (1) The appraisal of flowage easements will 
not be undertaken until flood frequency surveys have been completed and 
approved by proper authority. The flood frequency data will be made 
available to the appraisers with the definite understanding that it is 
to be accepted as one of the controlling factors in estimating the 
market value of the easements. The appraiser's certificate should be 
qualified to include the assumption that the frequency data is correct 
and that he has no responsibility therefore.
    (2) The market value of fee simple title to each property over which 
a flowage easement is required will first be appraised in the usual 
manner. This estimate will be followed by appraisal of the market value 
of the property after imposition of the easement. The market value of 
the easement is then computed on the basis of the amount the market 
value of fee title is reduced by imposition of the easement. The 
appraiser will give full consideration to all factors having a bearing 
on the reduction in value of the parcel on which the easement is to be 
imposed. Each appraisal report will include complete information as to 
estimated flood frequency pertaining to each parcel appraised.
    (3) The appraiser's major problem in appraising tracts having 
considerable value is the development of his value estimate after the 
imposition of the

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easement. The market data approach to value is limited in this phase of 
the appraisal to index sales of land reflecting the ``use adaptability'' 
of lands to a less profitable purpose. Typical of such change in highest 
and best use are the conversion of row crop land and orchard land to 
pasture and forestry. Likewise, the cost approach to value is applicable 
only to land improvements and structures to be removed or destroyed. It 
is, therefore, considered essential that flowage easement appraisals 
reflect, in adequate detail, changes in utility by the development and 
use of the earnings approach to value before and after imposition in all 
cases involving lands capable of producing income. The ratios thus 
developed in ``before'' and ``after'' values for income producing lands 
should prove to be helpful in developing appropriate ratios for 
nonproductive lands.
    (4) In those instances where the type of land, topography, flood 
frequency and duration data clearly indicate that a minimal change in 
value (not to exceed $100) will result from exercise of the required 
rights, a brief appraisal is authorized. The appraisal report will 
contain as a minimum a complete statement of pertinent facts, including 
information regarding flood frequency and duration data pertaining to 
the property appraised. In the event condemnation is required to acquire 
the necessary rights, an acceptable ``before'' and ``after'' appraisal 
will be prepared prior to the institution of condemnation proceedings.
    (5) A tract map showing each contour level of varying flood 
frequency will be made a part of each appraisal report. This map should 
facilitate review of the appraisals and serve as an aid to the 
negotiator in his contacts.
    (d) Other Easements. It is recognized that many other types of 
easements, i.e., road, pipeline, restrictive, borrow, transmission line, 
flight, spoil, etc. are to be appraised. In all instances, the measure 
of value is still the same, the amount by which the market value of the 
ownership is diminished by the imposition.