Possession and Use Agreements (PUAs) with an incentive shall be offered on every parcel, on every project, on a statewide basis.

The forms (or selected pre-approved or pre-approvable alternate provisions from form ) can reduce delays in the negotiation process, thus allowing TxDOT to provide transportation improvements in a timely manner. This procedure allows partial payment for the parcel once the PUA is signed. The PUA acquires the use of property for transportation purposes prior to completion of a full acquisition or eminent domain process. The PUA is a voluntary and irrevocable agreement transferring the right to use the property to the state before a fee conveyance is made. Use of the PUA allows removal of the parcel from the project letting critical path by providing a conveyance document with monetary consideration that is not a deed.

The “incentive” payment associated with execution of the is an independent market rental consideration paid to the property owner for the value of the advanced timing of possession. The market rental amount will be calculated at 10% of the initial approved value of a parcel with a minimum amount of $3,000 and a maximum amount of $25,000. The incentive percentage was determined based on industry standards for the recommended amount of a typical yearly market rental rate as associated to the total value of a piece of property. This is money the landowner will never have to pay back to TxDOT regardless of the outcome of the litigation.

Along with the market rental payment, the property owner can be paid any portion of the approved appraised value (0-100%) of the parcel as appropriately based on the circumstances of each individual parcel. In determining the amount of the approved value to pay to a landowner, consider any title issues on a parcel and the risk TxDOT may subject itself to double-compensation or interrupted possession based on outstanding title issues.

PUAs are to be recorded in county real property records. Action to complete the acquisition by either negotiated deed or ED must continue to be pursued within the timeline stated in the agreement.