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Ask Attyadvisor Your Own Question
Attyadvisor, Attorney
Category: Real Estate Law
Satisfied Customers: 6895
Experience:  29 years of experience in General Practice, Real Estate Law and Estate Law.
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I have a property in Burbank that the LADWP is offering

Customer Question

I have a property in Burbank that the LADWP is offering $1000.00 to purchase the Subject
Easement. The amount is based on the fair market value of the property interests as determined by an independent appraiser in compliance with all state regulations. I want to be sure that this is the real value is the value if you can help me.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Attyadvisor replied 1 year ago.

You would want to hire an your own appraiser to tell you if the amount is in fact fair market value. There are many factors that an appraiser takes into account to make their determination. Did you receive a copy of the appraisal by the "independent appraiser"? I would want to check the comparables.

“Appraisal Methodology

The methodology for easement valuation is based upon the bundle of rights: the

fair market value of an easement is its contribution to the bundle comprising the

ownership rights of a specific property.

An easement is an interest less than the fee estate, with the landowner retaining

full ominion over his realty subject only to the easement, and the landowner may

make any use of his realty that does not interfere with the easement holder’s

reasonable use of the easement.”


Interagency Land Acquisition Conference,

Uniform Appraisal Standards forFederal Land Acquisitions

(Washington, D.C.: 1992), p. 56


Before and After Method

The Before and After method is used to determine whether, and the degree to

which,an easement changes a property’s use and value. Under the Before and

After method, the value of the property after the imposition of the easement is

subtracted from the value of the property before the imposition of the easement to

estimate the value of the easement. Each value conclusion is made as of the same



The Land Trust Alliance and the National Trust for Historic Preservation,

Appraising Easements

(Alexandria, VA: 1990), 2nd

ed., p. 19.

Appraisal Methodology (Cont’d)

Direct Comparison

If there is a substantial record of sales of easements comparable to the

donated easement (such as purchases pursuant to a governmental program),

the fair market value of the donated easement is based upon the prices of

such comparable easements.


Treasury Regulations




Given the lack of comparable sales of easement

encumbered properties, the appraiser must visualize and consider the effects the easement restrictions will have on the property relative to other properties,....”

I would want to see the comparables on the appraisal that came up with the $1000valuation.

The formula used is set put below:

"Step 1

Gather details of the easement. If it is already granted, obtain a copy of the easement deed. The value of the easement depends on its location, purpose and use. Put simply, appraisers do not value the easement itself, but its effect on the burdened property. For example, a small gutter overhang between two residential houses is unlikely to have any impact on the use of the burdened house, so has minimal value. A large right of way that prevents an owner from developing his tract of land is another matter.

Step 2

Ascertain the market value of the whole of the burdened land, as if the easement does not exist. This is not just the land over which the easement is exercised, like the width of a right of way, but the larger plot owned by the burdened landowner. Express the market value as an appropriate per unit value (per square foot, per acre). This is your "before scenario."

Step 3

Consider the remainder. This is the burdened landowner's larger tract of land, less the easement area. Value the remainder on the basis that it is subject to the easement. Use comparison or paired sales analysis to assess the value of other plots in the locality, sold with and without the burden of a similar easement, to ascertain the impact of the easement. Adjust for special circumstances; for example, the easement will have a lesser value on the remainder if it is limited in time. Express the value according to your price per unit. This is your "after scenario."

Step 4

Measure the easement land. Include the whole length and width. Do this by reference to plans and a ground inspection.

Step 5

Deduct the "after scenario" value from the "before scenario" value to arrive at a value per unit of the easement land. Multiply by the measured area of the easement land to arrive at a total market value."

Value of Easements

You can always counter for a higher amount.

Expert:  Attyadvisor replied 1 year ago.

Are you the same customer asking this question?

"I have a property in Burbank that the LADWP is offering a nominal amount to purchase the SubjectEasement to do an underground construction project which involves tunneling. A paragraph of the proposed contract titled "Full and Complete Settlement in Lieu of Condemnation: Waiver of Damages". It reads as follows (ver batim)"Owner and City acknowledge that this transaction is a negotiated settlement in lieu of City exercising its power of eminent domain. Owner and City further acknowledge that City is acquiring the Easement through the Subject Property set forth herein under the threat of the power of eminent domain. Owner acknowledges that City's acquisition of the Easement through the Subject Property for the XXXXXXXXX Project is a valid public use. Owner hereby acknowledges that the compensation paid to Owner through this Agreement constitutes the full and complete settlement of any and all claims against City related to City's acquisition of the Easement through the Subject Property, including but not limited to full payment of just compensation in eminent domain by reason of City's acquisition of the Easement, specifically including, but not limited to, any and all rights or claims that the Owner has, may have or may in the future have under Article 1, Section 19 of California Constitution, the Eminent Domain Law, or any other law or regulation, except as provided herein. OWNER, ON BEHALF OF ITSELF AND ITS SUCCESSORS AND ASSIGNS, FURTHER KNOWINGLY AND VOLUNTARILY WAIVES AND EXPRESSLY RELEASES AND DISCHARGE CITY AND ANY AND ALL OF CITY'S EMPLOYEES, AGENTS, OFFICERS, SERVANTS, REPRESENTATIVES, CONTRACTORS, ATTORNEYS, PARTNER AGENCIES ASSIGNS, FROM LIABILITY IN REGARD TO ANY CLAIMS FOR THE ACQUISITION OF THE EASEMENT THROUGH THE SUBJECT PROPERTY AND THE CONSTRUCTION OF THE PROJECT AS PROPOSED, TO INCLUDE THE FOLLOWING: COMPENSATION FOR THE FAIR VALUE OF THE REAL PROPERTY TAKEN, PRE-CONDEMNATION DAMAGES, DAMAGES ARISING OUT OF OR RELATED TO THE PLANNING ACTIVITIES FOR THE PROJECT, LOSS OF BUSINESS GOODWILL,RELOCATION AND DISPLACEMENT CLAIMS UNDER THE CALIFORNIA RELOCATION ASSISTANCE LAW, LOST PROFITS, LOST RENTS, BUSINESS OPERATION IMPACTS, DAMAGE TO IMPROVEMENTS OR STRUCTURES, SEVERANCE DAMAGES, ANDY IMPACT ON ACCESS RIGHTS, THE IMPACT ON CIRCULATION RIGHTS, THE VALUE OF ANY LEASEHOLD INTEREST, CLAIMS RELATED TO SIGNAGE, CLAIMS RELATED TO VIEW OR VIEWSHED, CLAIMS FOR ANY FURNITURE, FIXTURES AND EQUIPMENT, ANY RIGHT TO REPURCHASE OR LEASEBACK FROM CITY, OR RECEIVE ANY FINANCIAL GAIN SHOULD CITY DETERMINE TO SELL ANY PORTION OF THE EASEMENT THROUGH THE SUBJECT PROPERTY, ANY RIGHT TO CHALLENGE CITY'S ADOPTION OF A RESOLUTION OF NECESSITY, ANY RIGHT TO RECEIVE ANY NOTICES PURSUANT TO CODE OF CIVIL PROCEDURE $1245.235, ANY RIGHT TO ENFORCE ANY OTHER OBLIGATION PLACED UPON CITY PURSUANT TO CODE OF CIVIL PROCEDURE $$1230.020 THROUGH 1273.050, ANY OTHER RIGHTS CONFERRED UPON OWNER PURSUANT TO CODE OF CIVIL PROCEDURE $$1245.245 AND 1263.615 AND 1263.025, AND ANY AND ALL CLAIMS FOR LITIGATION EXPENSES, ATTORNEY'S FEES, STATUTORY INTEREST AND/OR COSTS ARISING OUT OF THE ACQUISITION OF THE EASEMENT THROUGH THE SUBJECT PROPERTY AND/OR CONSTRUCTION OF THE PROJECT AS PROPOSED.Followings are my specific concerns:1. I do not know all the Codes and legal references cited in the above paragraph, how would LADWP expect to waive all the rights to all of these for a nominal purchase amount.2. If City (and LADWP) could and will invoke its Eminent Domain powers to acquire these easments, what is the reason for this voluntary purchase offering of easements? Are they getting more rights through this voluntary and negotiated process versus through the eminent domain laws?3. What options do I have at this poiint?Thanks."?

Expert:  Attyadvisor replied 1 year ago.

You would be the one waiving your rights. They provide a law ball figure that you will want to counter by hiring your own appraiser to set the value. Is set out the different methods used to appraise and you will want to to do your homework on this one.

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