Definitions

ACQUISITION
The process of acquiring real property (real estate) or some interest therein.

AGENCY
A governmental organization (either Federal, State, or local) or a nongovernmental organization (such as a utility company, or a private person using Federal financial assistance for a program or project) that acquires real property or displaces a person.

APPRAISAL
The act or process of estimating the monetary value of an interest in property. The appraisal is to be independent and impartial and prepared by a qualified appraiser. It must set forth an opinion of defined value for an adequately described property. The value will be assigned as of a specific date and will be supported by the presentation and analysis of relevant market data. The term appraisal is also frequently used as a synonym for the written appraisal report.

BUSINESS
The term "business" means any lawful activity, except a farm operation, that is conducted:

(1) Primarily for the purchase, sale, lease and/or rental of personal and/or real property, and/or for the manufacture, processing, and/or marketing of products, commodities, and/or any other personal property; or

(2) Primarily for the sale of services to the public; or

(3) Primarily for outdoor advertising display purposes, when the display must be moved as a result of the project; or

(4) By a nonprofit organization that has established its nonprofit status under applicable Federal or State law.

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

DISPLACED PERSON
The term "displaced person" generally means any person who moves from the real property or moves his or her personal property from the real property:

(1) As a direct result of a written notice of intent to acquire, the initiation of negotiations for, or the acquisition of, such real property in whole or in part for a project;

(2) As a direct result of rehabilitation or demolition for a project; or

(3) As a direct result of a written notice of intent to acquire, or the acquisition, rehabilitation or demolition of, in whole or in part, other real property on which the person conducts a business or farm operation, for a project. Eligibility for relocation benefits will, however, vary depending on the length and type of occupancy.

EASEMENT
An easement, in general, is the right of one person to use all or part of the property of another person for some specific purpose. Easements can be permanent or temporary (i.e. limited to a stated period of time). The term may be used to describe either the right itself or the document conferring the right.

EMINENT DOMAIN
The right of an agency to take private property for public use. In the United States, just compensation must be paid for private property acquired for federally funded programs or projects.

FAIR MARKET VALUE
The sale price that a willing and informed seller and a willing and informed buyer can agree to for a particular property.

FARM OPERATION
The term "farm operation" means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing such products or commodities in sufficient quantity to be capable of contributing materially to the operator's support.

INTEREST
A right, title, or legal share in something. People who share in the ownership of real property have an interest in the property.

JUST COMPENSATION
The price an agency must pay to acquire real property. The price offered by the agency is considered to be fair and equitable to both the property owner and the public. The agency's offer to the owner is “just compensation” and may not be less than the amount established in the approved appraisal report as the fair market value for the property. If it becomes necessary for the agency to use the condemnation process, the amount paid through the court will be just compensation for the acquisition of the property.

LIEN
A charge against a property in which the property is the security for payment of a debt. A mortgage is a lien, and so are taxes. Customarily, liens must be paid in full when the property is sold.

MINIMUM DAMAGE REQUISITION
An interest in property that a qualified person with appraisal knowledge indicates can be acquired for less than $10,000.00.

NEGOTIATIONS
The process used by acquiring agencies to reach amicable agreements with property owners for the acquisition of needed property. An offer is made for the purchase of property in person or by mail, and the offer is discussed with the owner.

NONPROFIT ORGANIZATION
The term "nonprofit organization" means an organization that is incorporated under the applicable laws of a State as a non-profit organization, and exempt from paying Federal income taxes under section 501 of the Internal Revenue Code (26 U.S.C. 501).

PERSON
Any individual, partnership, corporation, or association.

PERSONAL PROPERTY
In general, it is property that can be moved. It is not permanently attached to, or a part of, the real property. Personal property is not to be considered in the appraisal of real property.

SMALL BUSINESS
The term “small business” means a business having not more than 500 employees working at the site being acquired or displaced by a program or project, which site is the location of economic activity. Sites occupied solely by outdoor advertising signs, displays, or devices do not qualify as a business for some purposes of the rules.