Condemnation Settlement Agreement

CONDEMNATION SETTLEMENT AGREEMENT

PARTIES

CONDEMNING AUTHORITY:

Name: [________________________________]

Address: [________________________________]

City, State, ZIP: [________________________________]

Contact Person: [________________________________]

Telephone: [________________________________]

Email: [________________________________]

(hereinafter "Condemnor" or "Acquiring Agency")

PROPERTY OWNER(S):

Name(s): [________________________________]

Address: [________________________________]

City, State, ZIP: [________________________________]

Telephone: [________________________________]

Email: [________________________________]

(hereinafter "Owner" or "Property Owner")

RECITALS

WHEREAS, Condemnor is authorized to acquire real property for public purposes pursuant to [________________________________];

WHEREAS, Condemnor is acquiring property for the [________________________________] Project ("Project");

WHEREAS, Owner is the owner of certain real property located at [________________________________], more particularly described in Exhibit A attached hereto ("Subject Property");

WHEREAS, Condemnor [has filed / intends to file] a condemnation action, Case No. [________________________________], to acquire [all or a portion of] the Subject Property;

WHEREAS, the parties desire to settle all claims and disputes arising from the acquisition of the Subject Property without the necessity of further litigation;

WHEREAS, Owner has been provided the opportunity to obtain independent legal counsel and appraisal services;

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

AGREEMENT

ARTICLE I - PROPERTY ACQUISITION

1.1 Property Being Acquired

Condemnor is acquiring the following interest in the Subject Property:

☐ Fee Simple interest in the entire parcel
☐ Fee Simple interest in a portion of the parcel, as described in Exhibit B
☐ Permanent Easement, as described in Exhibit B
☐ Temporary Construction Easement, as described in Exhibit B
☐ Other: [________________________________]

Total area being acquired: [________________________________] acres/square feet

1.2 Legal Description

The property being acquired is more particularly described in:

• Exhibit A: Legal Description of Subject Property
• Exhibit B: Legal Description of Area Being Acquired (if partial taking)
• Exhibit C: Survey/Plat

1.3 Title

Owner warrants that Owner holds marketable title to the Subject Property, subject only to the following encumbrances: [________________________________]

ARTICLE II - SETTLEMENT AMOUNT

2.1 Total Settlement Payment

Condemnor agrees to pay Owner the total sum of:

$[________________________________]

("Settlement Amount") as full and complete compensation for the acquisition described herein.

2.2 Breakdown of Settlement Amount

2.3 Payment Terms

☐ Lump Sum Payment

The Settlement Amount shall be paid in a single lump sum within [____] days of:

• ☐ Execution of this Agreement
• ☐ Court approval of this Agreement
• ☐ Delivery of executed deed/conveyance documents
• ☐ Other: [________________________________]

☐ Installment Payments

The Settlement Amount shall be paid as follows:

2.4 Payment Method

Payment shall be made by:
☐ Check payable to [________________________________]
☐ Wire transfer to account designated by Owner
☐ Check payable to Owner and [Lender Name] jointly
☐ Other: [________________________________]

2.5 Interest

☐ The Settlement Amount includes interest through [__/__/____].
☐ If payment is not made by [__/__/____], interest shall accrue at [____]% per annum.

ARTICLE III - RELOCATION BENEFITS

3.1 Eligibility for Relocation Benefits

☐ Owner is eligible for relocation assistance benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies Act (42 U.S.C. § 4601 et seq.) and/or applicable state law.

☐ Owner is not eligible for relocation assistance benefits.

☐ Relocation benefits are addressed separately and are not part of this settlement.

3.2 Relocation Benefits Included in Settlement

☐ The Settlement Amount [includes / does not include] the following relocation benefits:

3.3 Separate Relocation Claim

☐ Owner retains the right to file a separate claim for relocation benefits not addressed in this Agreement.

☐ Owner waives all claims for relocation benefits.

ARTICLE IV - CONVEYANCE AND POSSESSION

4.1 Conveyance Documents

Within [____] days of execution of this Agreement [or receipt of payment], Owner shall execute and deliver the following documents:

☐ Warranty Deed
☐ Quitclaim Deed
☐ Easement Agreement
☐ Right of Entry
☐ Other: [________________________________]

Conveyance documents shall be in the form attached as Exhibit D.

4.2 Delivery of Possession

Owner shall deliver possession of the property being acquired on:

☐ Date of this Agreement
☐ [__/__/____]
☐ [____] days after receipt of payment
☐ Other: [________________________________]

4.3 Condition of Property

Owner shall deliver the property in [its present condition / the following condition: ________________________________].

Owner shall remove the following personal property: [________________________________]

The following items are included in the sale and shall remain: [________________________________]

4.4 Risk of Loss

Risk of loss shall pass to Condemnor upon [delivery of possession / recording of deed / other: ____________].

ARTICLE V - LIENS AND ENCUMBRANCES

5.1 Owner Representations

Owner represents that as of the date of this Agreement:

☐ There are no liens, mortgages, or encumbrances on the Subject Property except: [________________________________]

☐ There are no pending or threatened litigation, bankruptcy, or other proceedings affecting the Subject Property except: [________________________________]

☐ All property taxes and assessments are current through [__/__/____].

5.2 Satisfaction of Liens

☐ Owner shall satisfy all liens and encumbrances from the Settlement Amount at or before closing.

☐ Condemnor shall pay the following amounts directly to lienholders:

5.3 Title Insurance

☐ Condemnor shall obtain title insurance at Condemnor's expense.
☐ Owner shall provide title insurance at Owner's expense.
☐ No title insurance required.

ARTICLE VI - RELEASES AND WAIVERS

6.1 Owner's Release

Upon receipt of the Settlement Amount, Owner, for Owner and Owner's heirs, successors, and assigns, hereby releases and forever discharges Condemnor, its officers, employees, agents, contractors, and successors from any and all claims, demands, actions, causes of action, damages, costs, expenses, and compensation of any kind, whether known or unknown, arising from or related to:

☐ The acquisition of the Subject Property
☐ The Project
☐ All claims for just compensation, severance damages, consequential damages, and any other damages related to the taking
☐ All claims that were or could have been asserted in Case No. [________________________________]

6.2 Scope of Release

This release includes but is not limited to:

☐ Claims for additional just compensation
☐ Severance damages
☐ Business damages and loss of goodwill
☐ Temporary damages during construction
☐ Loss of access claims
☐ Inverse condemnation claims
☐ Attorney's fees and costs
☐ Relocation benefits [if included in settlement]
☐ All other claims arising from the acquisition

6.3 Waiver of Unknown Claims

☐ California Civil Code Section 1542 Waiver (California only)

Owner expressly waives the provisions of California Civil Code Section 1542, which provides: "A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."

☐ General Unknown Claims Waiver

Owner acknowledges that Owner may discover facts different from or in addition to the facts now known or believed to be true. Owner agrees that this Agreement shall remain effective notwithstanding the discovery of such facts.

6.4 Reservations from Release

The following claims are expressly reserved and NOT released:

☐ Claims for personal injury or property damage from construction activities
☐ Relocation benefits (to be claimed separately)
☐ [________________________________]

6.5 Condemnor's Release

Condemnor releases Owner from all claims arising from Owner's ownership of the Subject Property prior to transfer, except: [________________________________]

ARTICLE VII - DISMISSAL OF LITIGATION

7.1 Dismissal

Within [____] days of payment of the Settlement Amount, the parties shall:

☐ File a joint stipulation for dismissal with prejudice in Case No. [________________________________]
☐ File a stipulated judgment consistent with this Agreement
☐ Other: [________________________________]

7.2 Court Costs

☐ Each party shall bear its own court costs and filing fees.
☐ Condemnor shall pay all court costs and filing fees.
☐ Other: [________________________________]

7.3 Form of Dismissal

The dismissal shall be in the form attached as Exhibit E.

ARTICLE VIII - ATTORNEY'S FEES AND COSTS

8.1 Attorney's Fees

☐ Included in Settlement Amount

The Settlement Amount includes $[____________] for Owner's reasonable attorney's fees.

☐ Separate Payment

In addition to the Settlement Amount, Condemnor shall pay Owner's reasonable attorney's fees in the amount of $[____________].

☐ Statutory Entitlement

Owner's attorney's fees are payable pursuant to [State statute citation] and are [included in / separate from] the Settlement Amount.

☐ Each Party Bears Own Fees

Each party shall bear its own attorney's fees.

8.2 Expert and Appraisal Costs

☐ The Settlement Amount includes $[____________] for Owner's appraisal and expert costs.
☐ Condemnor shall separately reimburse Owner $[____________] for appraisal and expert costs.
☐ Each party shall bear its own expert costs.

8.3 Payment of Fees

☐ Attorney's fees shall be paid directly to: [________________________________]
☐ Attorney's fees shall be paid to Owner.

ARTICLE IX - TAX MATTERS

9.1 Tax Reporting

☐ Condemnor shall report the Settlement Amount on IRS Form 1099-S.

☐ The payment breakdown for tax purposes is as follows:

9.2 Replacement Property

☐ Owner intends to treat this transaction as an involuntary conversion under IRC Section 1033.

☐ Owner has [____] years from the end of the tax year in which the settlement payment is received to acquire replacement property.

9.3 Tax Advice

Owner acknowledges that Condemnor has not provided tax advice. Owner has been advised to consult with a qualified tax professional regarding the tax consequences of this settlement.

ARTICLE X - REPRESENTATIONS AND WARRANTIES

10.1 Owner's Representations

Owner represents and warrants that:

☐ Owner has full authority to enter into this Agreement and convey the property interests described herein.

☐ Owner has had the opportunity to obtain independent legal counsel.

☐ Owner has had the opportunity to obtain an independent appraisal.

☐ Owner enters into this Agreement voluntarily and not under duress.

☐ No bankruptcy proceedings are pending or contemplated.

☐ There are no outstanding judgments or liens against Owner that would affect the property, except as disclosed.

☐ Owner has disclosed all known environmental conditions affecting the property.

10.2 Condemnor's Representations

Condemnor represents and warrants that:

☐ Condemnor has authority to acquire the Subject Property for the stated public purpose.

☐ The person signing on behalf of Condemnor has authority to bind Condemnor.

☐ Funds are available for payment of the Settlement Amount.

ARTICLE XI - ENVIRONMENTAL MATTERS

11.1 Environmental Condition

☐ Owner represents that, to Owner's knowledge, there are no hazardous materials or environmental contamination on the Subject Property.

☐ Owner discloses the following known environmental conditions: [________________________________]

☐ Environmental condition is "as is" and Condemnor accepts the property in its current condition.

11.2 Indemnification

☐ Owner indemnifies Condemnor against environmental claims arising from conditions existing before transfer.

☐ Condemnor accepts the property "as is" and waives environmental claims against Owner.

☐ Other: [________________________________]

ARTICLE XII - GENERAL PROVISIONS

12.1 Entire Agreement

This Agreement, including all Exhibits, constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior negotiations, representations, and agreements.

12.2 Amendments

This Agreement may not be amended except by written instrument signed by both parties.

12.3 Governing Law

This Agreement shall be governed by the laws of the State of [________________________________].

12.4 Binding Effect

This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors, and assigns.

12.5 Severability

If any provision of this Agreement is held invalid, the remaining provisions shall continue in full force and effect.

12.6 Counterparts

This Agreement may be executed in counterparts, each of which shall be deemed an original.

12.7 Notices

All notices shall be in writing and delivered to the addresses set forth above, or such other addresses as may be designated in writing.

12.8 Time of Essence

Time is of the essence with respect to all provisions of this Agreement.

12.9 Confidentiality

☐ This Agreement shall remain confidential except as required by law.
☐ This Agreement is a public record.

12.10 Court Approval

☐ This Agreement is subject to court approval.
☐ This Agreement is not subject to court approval.

SIGNATURES

CONDEMNING AUTHORITY:

[________________________________]

By: [________________________________]

Title: [________________________________]

Date: [__/__/____]

Approved as to Form:

[________________________________]
Attorney for Condemning Authority

PROPERTY OWNER(S):

Signature: [________________________________]

Printed Name: [________________________________]

Date: [__/__/____]

Signature: [________________________________]

Printed Name: [________________________________]

Date: [__/__/____]

Approved as to Form:

[________________________________]
Attorney for Property Owner

ACKNOWLEDGMENTS

Owner Acknowledgment

STATE OF [________________________________]

COUNTY OF [________________________________]

On [__/__/____], before me, [________________________________], a Notary Public, personally appeared [________________________________], who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of [________________________________] that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Notary Public: [________________________________]

My Commission Expires: [__/__/____]

[SEAL]

Condemnor Acknowledgment

STATE OF [________________________________]

COUNTY OF [________________________________]

On [__/__/____], before me, [________________________________], a Notary Public, personally appeared [________________________________], who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

WITNESS my hand and official seal.

Notary Public: [________________________________]

My Commission Expires: [__/__/____]

[SEAL]

EXHIBITS

☐ Exhibit A: Legal Description of Subject Property
☐ Exhibit B: Legal Description of Area Being Acquired / Easement
☐ Exhibit C: Survey/Plat
☐ Exhibit D: Form of Deed/Conveyance Document
☐ Exhibit E: Stipulation for Dismissal
☐ Exhibit F: [________________________________]

SETTLEMENT CHECKLIST

Before Signing:

☐ Obtained independent appraisal
☐ Consulted with experienced condemnation attorney
☐ Reviewed all terms carefully
☐ Understood tax implications
☐ Verified all liens and mortgages addressed
☐ Confirmed relocation benefits addressed
☐ Negotiated attorney's fees provision
☐ Reviewed release language carefully

After Signing:

☐ Received full payment
☐ Executed and delivered deed
☐ Filed dismissal of litigation
☐ Notified lienholders
☐ Filed tax returns properly
☐ Pursued replacement property (if IRC 1033)
☐ Retained copies of all documents

IMPORTANT CONSIDERATIONS

Settlement Value

Before settling, consider:

• Is the offer at or above fair market value?
• Are severance damages adequately compensated?
• Are business damages/goodwill included?
• Is the release language appropriate?
• Are attorney's fees adequately addressed?

Tax Implications

• Condemnation proceeds may qualify for IRC Section 1033 involuntary conversion treatment
• Replacement property must be acquired within statutory period (generally 2-3 years)
• Consult tax professional before settlement

Relocation Benefits

• Relocation benefits are separate from just compensation
• May not want to waive relocation claims
• Benefits may continue even after settlement of compensation

This template is provided for educational and informational purposes only. Settlement of condemnation claims involves significant legal and financial consequences. Consult with a qualified attorney and tax advisor before signing any settlement agreement.