Real Estate Program Manual (REPM)

REPM

The REPM is a tool to benefit WisDOT Real Estate staff and our business partners in understanding and applying policies, guidelines and practices of the WisDOT highway real estate acquisition program. It is meant for the use of WisDOT Real Estate staff and consultants ONLY and includes publication of WisDOT/Real Estate approved forms and related documents. Materials in this manual require use of Acrobat® Reader™.

Notes:

For convenience, immediately after general 'Table of Contents' heading, each REPM chapter is saved in whole as a stand-alone PDF. The detailed/expanded 'Table of Contents' is further down with additional links and descriptions of each separate section, sub-section, subject and topic.
A copy of the entire manual is under construction. Use the individual chapter links below in the mean time.
For guidance and forms specific to local public agency right of way acquisition processes, see Local Public Agency (LPA) Manual for Right of Way Acquisition.

General 'Table of Contents'

Introduction
Chapter 1: Project Development
Chapter 2: Appraisalupdated 03/2020
Chapter 3: Acquisitionupdated 01/2024
Chapter 4: Litigation
Chapter 5: Relocationupdated 05/2023
Chapter 6: Property Managementupdated 12/2021
Chapter 7: Financeupdated 10/2019
Chapter 8: Quality Assurance Review
Chapter 9: Contamination Guide
Chapter 10: Outdoor Advertising Signs
Definitions
Index

Updates (key REPM form and language updates remain posted for 6 months)

REPM form updates (see full list of all current approved REPM forms)

Administrative Cost Log (template) updated 10/2019
Appraisal / Appraisal Review Request (RE1010 - paper only) updated 11/2019
Business Replacement Payment - Tenant (unnumbered - template) updated 11/2019
Business Replacement Payment - Owner (RE1609 - template) updated 10/2019
Certificate of Right of Way (RE1899 - paper only) updated 01/2020
Decent, Safe and Sanitary Inspection Certification (RE1950 - template) updated 10/2019
Disposition of Real Estate Taxes (RE1616 - READS Template) updated 01/2020
Payment Request Checklist (RE1002) updated 09/2019
READS Relocation Parcel Checklist (unnumbered - READS template) updated 11/2019
Re-Establishment Expenses - Worksheet (RE1034 - READS template) updated 11/2019
Reasonable Project Costs - Worksheet (template) updated 11/2019
Relocation Assistance Package Receipt (RE1036 - template) updated 10/2019
Relocation Payments Summary Non-Residential (RE1679B - template) updated 10/2019
Relocation Payments Summary - Residential (RE1679R - template) updated 10/2019
Replacement Housing Payment - Owner (RE1943 - template) updated 10/2019
Replacement Housing Payment - Tenant (RE1948 - template) updated 10/2019
Scope of Work Agreement - new 11/2019
Tangible Loss & Substitute Use - Relocation Worksheets (RE1050 - paper only) updated 11/2019

REPM language updates

Chapter 1 - Section 1.3 - Encumbrances and Change Orders updated 09/2019
Chapter 2 - Appraisal rewrite 10/2019
Chapter 3 - Section 3.1.3 - Owner Contact updated 11/2019
Chapter 3 - Section 3.7.4 - Completing Disposition of Real Estate Taxes updated 01/2020
Chapter 3 - Section 3.12 - Condemnation Limitations updated 01/2024
Chapter 6 - Section 6.5 - Surplus Land Disposal updated 12/2021
Chapter 7 - Finance updated 10/2019

Detailed/Expanded 'Table of Contents'

Tip: Use (ctrl + f) for finding text quickly; search on whole chapters or individual sections.

Introduction

Chapter One: Project Development

1.1 Real Estate Cost Estimating

1.1.1 Definitions
1.1.2 General Information
1.1.3 Reporting
1.1.4 Comparison to Similar, Historical Projects
1.1.5 Appreciation Factor

Level 1: Program Estimate
Level 2: Base Estimate
Level 3: Build-Out Estimate
Level 4: Not to Exceed Estimate
Level 5: Project Cost Allocation - Encumbrance

1.2 Open Records

1.3 Encumbrances and Contract Change Orders

1.3.1 Introduction
1.3.2 Encumbrance Process

1.3.2.1 Project Cost Allocation Instructions

1.3.3 Contract Change Order Process

1.4 Early Authorization of Project ID

1.4.1 Allowable Expenses Prior to Relocation Order Approval
1.4.2 Additional Requirements if Federal Funds in R/W

1.5 Functional Replacement

1.5.1 State or Federal Participation
1.5.2 Process

1.6 Right of Way Plats and Relocation Order

1.6.1 Estimates
1.6.2 Interest Acquired
1.6.3 Right of Way Plat
1.6.4 Relocation Orders
1.6.5 Printing Requirements
1.6.6 Federal Funding
1.6.7 Approval Notification
1.6.8 Recordkeeping

1.7 Contracting for Real Estate Services

1.7.0 General Overview

1.7.0.1 Roles, Authority and Contract Types
1.7.0.2 Processes Specific to WisDOT Real Estate

1.7.1 Purchase Contracts (Chapter 16) Overview

1.7.1.1 Purchase Contracts for Real Estate
1.7.1.2 Purchasing Real Estate (RE) Title Services

1.7.2 Master Contracts (Chapter 84) Overview

1.7.2.1 Master Contracts for Real Estate
1.7.2.2 Appraisal/Appraisal Review Services (Low-Bid "Cost Per Unit")
1.7.2.3 Full Service and Other Specialty Real Estate Services

1.7.3 Real Estate Contracting for Services Summary

1.8 WisDOT Relocation Incentive Program

1.8.0 Policy and Guidance
1.8.1 Procedures

1.8.1.1 Approvals
1.8.1.2 Regional Processes
1.8.1.3 Real Estate Vacancy Timetable and Payment Schedule

1.8.2 Summary

Chapter Two: Appraisalupdated 03/2020
2.0 General Appraisal Policy
2.1 Appraisal Administrative Items
2.2 Appraisal Field Work
2.3 Eminent Domain Appraisal Reporting
2.4 Eminent Domain Appraisal Concepts
2.5 Waiver Valuations
2.6 Appraisal Review Guidelines
Addendum A - WisDOT Real Estate Appraisal Training

Chapter Three: Acquisition

3.1 Negotiation Procedures

3.1.1 Requirements for R/W Acquisition

3.1.1.1 Relocation Order
3.1.1.2 Offering Price Approval
3.1.1.3 Acquisition Restrictions

3.1.2 Negotiation Requirements
3.1.3 Owner Contact updated 11/19
3.1.4 Preparing for Negotiation
3.1.5 Formal Negotiations
3.1.6 Owner's Appraisal
3.1.7 Related Issues

3.2 Early and Advanced Acquisitions

3.2.1 Introduction
3.2.2 Early Acquisition Process
3.2.3 Hardship and Protective Purchase Process (Advanced Acquisition)

3.2.3.1 Use of Condemnation
3.2.3.2 R/W Plat and Relocation Order Requirements
3.2.3.3 Advanced Acquisition Criteria
3.2.3.4 Procedure for Hardships or Protective Purchases
3.2.3.5 Denial of Hardship Request

3.3 Alternate Offers and Changes to Original Offering Price

3.3.1 Alternate Offers

3.3.1.1 Uneconomic Remnants
3.3.1.2 Economic Remnants

3.3.2 Changes to Original Offering

3.4 Donations, Temporary Interests, and Right of Entry Easements

3.4.1 Donations
3.4.2 Temporary Limited Easements and Construction Permits
3.4.3 Temporary Right of Entry Easement

3.5 Conveyance of Documents

3.5.1 Recording Documents
3.5.2 Notarization or Acknowledgement
3.5.3 Signing, Witnessing and Acknowledging
3.5.4 Signature Line Examples
3.5.5 Minors and Guardians
3.5.6 Incompetent Persons
3.5.7 Power of Attorney
3.5.8 Persons Unable to Write
3.5.9 Trusts
3.5.10 Estates
3.5.11 Partnerships

3.5.11.1 General Partnerships
3.5.11.2 Limited Partnerships

3.5.12 Corporations

3.5.12.1 Private Corporations
3.5.12.2 Public Corporations

3.5.13 School Boards

3.5.13.1 Common or Union School Districts
3.5.13.2 Unified School Districts

3.5.14 Cemetery Associations
3.5.15 Religious or Fraternal Societies and Churches
3.5.16 Cooperatives
3.5.17 Land Contracts
3.5.18 Federal Land Transfers
3.5.19 Condominiums NEW 03/2020

3.6 Parcel Closing Procedures

3.6.1 Satisfaction of Mortgage, Partial Release and Other Liens
3.6.2 Closing Statements and Payment Procedures
3.6.3 Recording Conveyances and Awards
3.6.4 READS Entry

3.7 Taxes and Tax Proration

3.7.1 Prorating Rules
3.7.2 Delinquent Taxes and Special Assessments
3.7.3 Tax Liens
3.7.4 Completing Disposition of Real Estate Taxes

3.8 Internal Revenue Service Forms

3.8.1 Reportable Real Estate Transactions

3.8.1.1 Agent's Advice to Property Owner

3.8.2 Exceptions

3.8.2.1 By Transaction
3.8.2.2 By Transferor
3.8.2.3 Certifications for Exceptions

3.8.3 Special Rules for Multiple Transferors

3.8.3.1 In General
3.8.3.2 Husband and Wife
3.8.3.3 Partnerships

3.8.4 Form W-9: Taxpayer Identification Numbers (TINs)
3.8.5 Form 1099-MISC: Attorney's Fees Paid from Gross Proceeds
3.8.6 Filing Requirements
3.8.7 Retention Requirements Compiled
3.8.8 Specific Instructions for Completing Form 1099-S
3.8.9 Summary and Cautionary Statement

3.9 Condemnation/Legal Assistance

3.9.1 Requests for Legal Assistance and Opinions
3.9.2 Authority
3.9.3 When Condemnation is Necessary
3.9.4 Condemnation of Federal Bankruptcy Property
3.9.5 Revisions to Offering Price
3.9.6 Jurisdictional Offer to Purchase
3.9.7 Notice of Jurisdictional Offer
3.9.8 Lis Pendens
3.9.9 Rights of Subsequent Parties in Interest
3.9.10 Contested Right to Take
3.9.11 Award of Damages
3.9.12 Approval of Awards of Damages
3.9.13 Service of Award
3.9.14 Waiting Period Before Award of Damages
3.9.15 Award of Damages Payment
3.9.16 Date of Acquisition/Evaluation
3.9.17 Disputed Payments
3.9.18 Amended Awards
3.9.19 Occupancy Writ of Assistance
3.9.20 Inverse Condemnation by Owner
3.9.21 Trial of Title
3.9.22 Acquiring Title in Trustee
3.9.23 Emergency Condemnation
3.9.24 Direct Acquisition by Local Public Agency
3.9.25 Acquisition by Agent/Department

3.10 Right of Way Certification Process

3.10.1 Process Overview
3.10.2 General Procedures and Responsibilities
3.10.3 Real Estate Requirements to Let a Project
3.10.4 Certification Types and Status
3.10.5 Completing Certificate of Right of Way
3.10.6 Certificate of Right of Way (RE1899)
3.10.7 Detailed Instructions to Complete RE1899
3.10.8 The PS&E Tracking System
3.10.9 Real Estate Review of a Cert (Form RE1899)
3.10.10 PS&E Real Estate Clearance
3.10.11 Federal Oversight Projects
3.10.12 Ad Meeting
3.10.13 After the Ad Meeting
3.10.14 Bid Review Meeting

3.11 Special Property Owners

3.11.1 Railroads

3.12 Condemnation Limitations

3.12.1 Process for Bicycle and pedestrian facilities ONLY projects
3.12.2 Process for Projects requiring Acquisition for both Roadway and Bicycle and pedestrian facilities

Chapter Four: Litigation

4.1 Appeals for Greater Compensation

4.1.1 General Information and Appeal Deadlines
4.1.2 Appeal to County Condemnation Commission
4.1.3 Appeal from Condemnation Commission to Circuit Court
4.1.4 Direct Appeal to Circuit Court
4.1.5 Appeal from a Judgment

4.2 Roles and Responsibilities in Litigation

4.2.1 Office of General Counsel
4.2.2 Real Estate Statewide Litigation Facilitator
4.2.3 Real Estate & Technical Services Managers
4.2.4 Regional Litigation Coordinators

4.3 Litigation Procedures

4.3.1 Proper/Improper Service
4.3.2 Service of Appeal
4.3.3 Preparing Attorney Working File
4.3.4 Initial Case Review Meeting
4.3.5 Legal Pre-Trial Settlements
4.3.6 Federal Funding in Real Estate and State/Federal Funding in LPA Projects
4.3.7 Filing of Judgments
4.3.8 Finalizing Litigation and Case Summary
4.3.9 Payment of Litigation Costs
4.3.10 Post Litigation Wrap-Up Conference
4.3.11 Litigation Files

4.4 Claims and Legal Actions

4.4.1 Drainage and Change of Grade Claims

4.4.1.1 Drainage Claim Details
4.4.1.2 Change of Grade Claim Details

4.4.2 Incidental Expenses to Transfer Property
4.4.3 Claim or Action Taken Against a State Employee
4.4.4 Construction Claim
4.4.5 Crop Loss and Damages Claim (caused by survey crews)
4.4.6 Notice of Claim Filed with Claim Board
4.4.7 Lawsuits Naming State
4.4.8 Subpoena
4.4.9 Inverse Condemnation
4.4.10 Right to Take

Chapter Five: Relocation

See Outdoor Advertising Relocation Agreement with Relocation Cost Schedule (RE1033)

Chapter Six: Property Management

For current listings, see Land and Property for Sale

6.0 Procedures Upon Acquisition

6.0.1 Inspection of Property Acquired
6.0.2 Maintenance of Vacant Land
6.0.3 Vacant or Improved Property of Historical Interest
6.0.4 Insurance on Acquired Buildings
6.0.5 Safety and Health Considerations
6.0.6 Conflict of Interest

6.1 Site Clearance

6.1.1 General Requirements

6.1.1.1 Police and Fire Training Policy on WisDOT Property w/Agreement

6.1.2 Site Clearance Process, Roles and Responsibilities

6.1.2.1 "Examples" Razing & Removal Forms/Docs/Materials - For Reference Only!
6.1.2.2 "Fill-Ready" Razing & Removal Forms/Docs/Materials - As Needed/Required

6.2 Lease of State owned Properties

6.2.0 Overview
6.2.1 WisDOT Right to Lease
6.2.2 Rental Agreement - Terms and Conditions

6.2.2.1 Rental Agreement as Contract
6.2.2.2 Rental Agreements and Relocation
6.2.2.3 Accommodation of Tenants Prior to Construction
6.2.2.4 Contemplation of Leasing for Agricultural Use
6.2.2.5 When to Have Rental Agreements Available
6.2.2.6 Fulfillment of Obligations, Terms and Conditions of Rental Agreements
6.2.2.7 Maintenance

6.2.2.7.1 Normal (Minor) Maintenance
6.2.2.7.2 Unusual (Major) Maintenance
6.2.2.7.3 Emergency Repairs

6.2.3 Owner or Tenant Refusal to Execute Rental Agreement

6.2.3.1 Eviction

6.2.4 Payment and Collection of Rent

6.2.4.1 Payment
6.2.4.2 Collection

6.2.5 Procedure for Establishing Rent Under Rental Agreement

6.2.5.1 When to Present Rental Amount to Lessee
6.2.5.2 Calculation of Rental Amount
6.2.5.3 Adjustment of Rent During Negotiations

6.3 Right of Way Use Agreements

6.3.1 Proposing and Executing an Agreement

6.3.1.1 Proposing a Right of Way Use Agreement
6.3.1.2 Reviews and Approvals
6.3.1.3 Contents
6.3.1.4 Fair Market Rental

6.3.2 Right of Way Agreements in Milwaukee County
6.3.3 Maintaining Inventory of Leases
6.3.4 Maintaining Intended Use
6.3.5 Change in Proposed Use of Lease
6.3.6 Special Consideration to Institutions of Higher Learning

6.4 Managing Property Inventory

6.4.1 Overview
6.4.2 Sources of Inventoried Parcels
6.4.3 Classifications of Inventoried Parcels
6.4.4 Disposition of Inventoried Parcels

6.5 Surplus Land Disposalupdated 12/2021

6.5.1 Overview
6.5.2 Definitions

6.5.2.1 Surplus Property Classifications
6.5.2.2 Marketing Categories and Appropriate Disposal Action
6.5.2.3 Definitions Specific to Appraisal / Valuation

6.5.3 Approvals Required
6.5.4 General Disposal Procedures
6.5.5 Wisconsin Act 392

6.5.5.1 Critical Timelines
6.5.5.2 First Refusal Rights
6.5.5.3 Marketing Requirements

6.5.6 Surplus Property Disposal Requirements

6.5.6.1 Research and Identification
6.5.6.2 Establishing Title
6.5.6.3 Federally Funded Surplus
6.5.6.4 Regional Review and Approval
6.5.6.5 Environmental Documentation
6.5.6.6 Establishing Deed Restrictions
6.5.6.7 Property Description/Survey
6.5.6.8 Conveyance Type and Preparation
6.5.6.9 Valuation
6.5.6.10 Sale Packet Processing and Approving Authority
6.5.6.11 Parcel Closings and Document Recording
6.5.6.12 File Documentation and Closure

6.5.7 Establishing Value of Surplus Property

6.5.7.1 Appraisal Order Request
6.5.7.2 Average Unit of Comparison Method (see average unit spreadsheet link)
6.5.7.3 Assessed Valuation Method (see assessed spreadsheet link)
6.5.7.4 Surplus Property Appraisal Reports

6.5.7.4.1 Appraisal Report Non-Complex Surplus Property
6.5.7.4.2 Appraisal Report Complex Surplus Property

6.5.7.5 Surplus Property Valuation Issues
6.5.7.6 Surplus Property Appraisal Reviews

6.5.7.6.1 Objective Review
6.5.7.6.2 Appraisal Review

6.5.8 General Marketable Property Disposal

6.5.8.1 Public Sale

6.5.8.1.1 Public Sale - Sealed Bid
6.5.8.1.2 Public Sale - Auction
6.5.8.1.3 Public Sale - Broker Listings

6.5.8.2 Private Sale or Transfer

6.5.8.2.1 Private Sale or Transfer - Qualifying Public Use
6.5.8.2.2 Private Sale or Transfer - Transportation-Related Use
6.5.8.2.3 Private Sale or Transfer - Project Parcel Mitigation
6.5.8.2.4 Private Sale or Transfer - Wetland Mitigation

6.5.9 Limited Marketable Property Disposal
6.5.10 Non-Marketable Property Disposal

6.5.10.1 Disposal of Inventoried, Non-Marketable Property

6.5.10.1.1 Parcels Valued at <$1,000
6.5.10.1.2 Parcels Valued at >$1,000

6.5.10.2 Disposal of Non-Inventoried, Non-Marketable Property

Sample documents and templates referenced:

Example #1 - Letter Ordering Transfer of RW to WisDOT
Example #2 - Public Sale Bulletin Template
Example #3 - Summary of Sale Coversheet
Example #4 - 60-Day First Right of Refusal Letter
Example #5 - Low Value Parcel Offer Letter
Example #6 - Average Unit of Comparison Valuation Spreadsheet
Example #7 - Assessed Valuation Method Spreadsheet

6.6 Excess Buildings/Personal Property Sales

6.6.1 Salvage Value of Improvements and Fixtures
6.6.2 Maintenance of Surplus Inventory
6.6.3 Public Sale Announcements
6.6.4 Bid Process
6.6.5 Performance Deposits
6.6.6 Bill of Sale and Indemnification Agreements
6.6.7 Moving Structures Over State Highways
6.6.8 State Sales Tax on Personal Property Transaction

6.7 Reporting Sale and Rental Revenue

6.8 Scenic Easements

6.9 Jurisdictional Transfers

Chapter Seven: Finance

7.0 Making Payment Requests

7.0.1 Overview
7.0.2 Payment Types
7.0.3 READS Entry
7.0.4 Payment Request Checklist & Required Documentation
7.0.5 Recordkeeping
7.0.6 Missing or Expired Check / Cancelling a Check new 10/2019

See Chapter 1; Sections 1.3 and 1.4 for early authorization of real estate project ID and encumbrance and contract change order process. Formerly Sections 7.1 and 7.2.

7.3 Projects Less Than $1,000

Chapter Eight: Quality Assurance Review

8.1 Quality Assurance Review

Chapter Nine: Contamination Guide

9.0 Definitions

9.1 Investigating and Acquiring Contaminated Parcels

9.2 Determining Potential for Contamination

9.2.1 Phases of An Investigation

9.3 When Contamination Is Suspected Or Identified

9.3.1 Authority to Enter Private Lands for Environmental Testing
9.3.2 Test Results Notification

9.4 Underground Storage Tanks

9.5 Move Payments Involving Hazardous Materials, Substances and/or Waste Disposal

9.6 Acquiring Contaminated Property

9.6 Acquiring Contaminated Property
9.6.1 Contaminated Site Closure
9.6.1.1 Closed Sites with Continuing Obligations

9.7 Appraising Contaminated Parcels

9.7.1 Specialized Appraisal Terms and Definitions
9.7.2 Describing Contamination in Appraisal Report
9.7.3 Appraisal Considerations for Contaminated Property
9.7.4 Common Appraisal Method
9.7.5 Valuation of a Contaminated Site as if Unimpaired

9.8 Local Public Agencies (LPA) Projects and Connecting Highways

Chapter Ten: Outdoor Advertising Signs

10.0 Purpose

10.0.1 Introduction

10.1 Sign Status and Sign Categories

10.1.1 On-Premise vs. Off-Premise Signs
10.1.2 Illegal Signs
10.1.3 Conforming Signs
10.1.4 Special Sign Categories
10.1.5 Nonconforming Signs
10.1.6 Grandfathered Signs
10.1.7 Determining Sign Status and Category Summary

10.2 Compensation and Relocation Benefits

10.2.1 Background
10.2.2 Conforming Sign Compensation

10.2.2.1 Realignment Under Wis. Stats. 32.1915(4) and 84.30(5r
10.2.2.2 Relocation Under Administrative Rule 92.54

10.2.3 Nonconforming Sign Compensation
10.2.4 Grandfathered Sign Compensation
10.2.5 Illegal Signs Get No Compensation

10.3 Procedures

10.3.1 Identify Signs Early
10.3.2 Identify Impact Type
10.3.3 Review Plat
10.3.4 Determine Sign Status and Category
10.3.5 State-Municipal Agreement
10.3.6 Process Overview
10.3.7 Illegal Signs - Procedures
10.3.8 Conforming Signs - Procedures

10.3.8.1 Realignment of Conforming Signs to State and Local Requirements
10.3.8.2 Realignment of Conforming Signs to State, but Not Local Requirements
10.3.8.3 Realignment of Same parcel Not Possible - Sign Site Acquired

10.3.9 Nonconforming Signs - Procedures
10.3.10 Jurisdictional Offers - Conveyance Forms and Payments
10.3.11 Abandoned Signs
10.3.12 Leasehold Interest
10.3.13 Sign Inventory Maintenance Notification
10.3.14 Leasing and Removal of Outdoor Advertising Signs on Highway lands

10.4 Off-Premise Sign and Sign Site Appraisal

10.4.1 Billboard Valuation Case Law
10.4.2 Appraisal Process Introduction
10.4.3 Appraisal Problem Identification and Discussion
10.4.4 Scope of Work
10.4.5 Highest and Best Use
10.4.6 Valuation Process - Approaches to Value

10.4.6.1 Sales Comparison Approach
10.4.6.2 Cost Approach
10.4.6.3 Income Approach

10.4.7 Severance Damage to TOARP
10.4.8 Division of Proceeds

Chapter 10 Appendices

Definitions - terms typical to real estate as may be unique to WisDOT

Index - a quick find list of key topics within REPM

Job Aids

Condemnation Process with Publishing
File Check List
Offering Package Checklists
Creation and notification procedures for Surplus Lands and acquired improvements

REPM forms with READS templates - list contains copies of all current approved WisDOT eminent domain highway real estate forms for use ONLY by internal WisDOT staff and our consultants. Important: Staff and consultants must auto-generate project related forms, letters and documents directly from READS where available and as applicable.

Real Estate Program Manual (REPM)

​​​​​​​​​​​​​​​​REPM​

General 'Table of Contents'

Updates (key REPM form and language updates remain posted for 6 months)

Detailed/Expanded 'Table of Contents'

Related links

REPM