Valuation And Process To Close

(1) Easement funding offers. During each application period, the department will offer program enrollment for the associated easements to qualified easement holders for applications submitted by qualified easement holders and landowners that receive the highest scores and may be funded within the payment maximums established by the program. (2) Performance and review. (a) Acceptance of the offer and execution of its contract may require holder’s performance of temporal benchmarks during the term, including but not limited to production of: 1. Appraisal for the value of a conservation easement on the parcel, produced by a state licensed property appraiser in accordance with Uniform Standards for Professional Appraisal Practice, and any accompanying reports or other documents incident to the appraisal. The easement value must be calculated as the difference between the parcel’s fair market value before and after the easement is granted; 2. Boundary survey and legal description of the parcel to be encumbered by the easement; FARMLAND PRESERVATION CHAPTER 0080-01-04 3. Preliminary assessment of improvements on the parcel and the percentage of impervious surfaces on the parcel with a primary purpose other than commercial production of agriculture or forestry; 4. If subsurface rights on the parcel are severed, a remoteness study and written statement of a state licensed geologist that subsurface interests on the parcel are so remote as to be negligible; 5. Title commitment containing title search results identifying parcel ownership, any current lienholders, recorded leases, or other encumbrances affecting the suitability of the parcel for the program; demonstrating marketable and insurable title of the owners indicated in the application; and all supporting documents; 6. Proposed final draft of deed language; 7. Recorded deed for conveyance of the easement interest, drafted in accordance with the Act and this chapter and recorded in each county where the parcel is located; and 8. Owner’s title policy insuring the holder in an amount equal to the appraised value of the easement or the amount paid to the holder under the program for acquisition of the easement, whichever is greater. (b) For documents required under this rule, holders shall select service providers from a list of approved vendors maintained by the department of general services, State of Tennessee Real Estate Asset Management (STREAM). (c) The department may forward to STREAM any documents submitted under the contract, and upon departmental request STREAM may review those documents for accuracy and validity in operating the program, using all processes that are appropriate and generally accepted within the real estate industry for transfer of property interests in agricultural and forest land. If STREAM review indicates inaccuracy or invalidity of documents submitted under the contract, including inaccuracy or overvaluation of the appraised value of the easement or other non-compliance with requirements of the Act or this chapter, the department may pursue remedies in accordance with the contract or void the parcel application for that application period. (d) If an application selected for an easement funding offer is later voided or withdrawn for any reason, such as failure to perform contract requirement, easement valuation exceeds payment caps, etc., the department will not extend additional offers to alternate applicants in the same application period. (e) Except for provisions relative to payment caps, nothing in this chapter may be construed to limit or to influence construction of contract terms extended under offers for program funding. (3) Term. Easement funding offers run for a term not to exceed 360 days from the date a program funding offer is made. For good cause shown and with the department’s sole discretion, the department may grant one extension of the performance period, up to 180 days from the end of the term. The department will not extend the time for performance for delays arising from the applicants’ lack of diligence or for general market conditions, but may consider extensions for documented circumstances beyond the applicants’ reasonable control. If a qualified easement holder is unable to execute the contract in full prior to the end of the term and extension, if applicable, the offer expires and is withdrawn. FARMLAND PRESERVATION CHAPTER 0080-01-04