Appraisal for Public and Private Expropriation Purposes
Appraisal with specific purpose for government agencies or private sector who receive concessions and authorization from the government agencies to proceed with public development projects on their behalf. Projects may also be in the form of joint venture between government and the private sector. Reason for granting responsibility and authorization to the private sector is mainly down to the superior flexibility of operation the private sector is able to deliver in completing projects. Hence, the state’s burden and incurred cost are passed on to the private sector. As a result the cost of expropriation or eminent domain must be carefully obtained and examined by the private sector domain by conducting feasibility studies before any project proceeding.
The procedures regarding the valuation for compensation cost for government projects begin as the private sector identifies the project’s framework and subjected area to exercise the power of eminent domain. This includes categorizing each rights and ownership documents for each of the land owners or holders of the right. The process has to be done carefully and thoroughly in order to cover every square inch of the area. Any plot of land being left may delay the delivery of the area, hence, delaying the project entirely. After the expropriation line or area subjected for eminent domain has been clearly stated and officially announced publicly, the next step is conducting on-site survey of the entire area in order to determine details of the assets and properties located on each plot of land; buildings, houses, trees, livestock and any special structures that may exist. It is also crucial to consider the nature of possession and ownership on the ground of each plot, otherwise, problems may arise later, which result in non deliverable of the land to be developed upon. Subsequently, the valuation models and approaches are identified after exploration of the land. Valuation may adopt multiple appraisal methods depending on type of ownership, building type, type of usage, location and etc.