To clarify the appropriate payment of just compensation for Temporary Construction Easements (TCEs)1 to the grantor, the Caltrans Office of Appraisals and Local Programs has issued this memo: Temporary Construction Easements – Payment of Just Compensation (July 6, 2015).
The key takeaway is that a property owner must be compensated for the entire TCE term. So while the actual/physical use of a property may be anticipated for a limited time during a project, compensation should be made for the entire duration of legal possession.
For an example of the situation and additional information regarding the topic, check out the memo.
- A TCE is a temporary property encumbrance for a specific anticipated use over a specified duration of time. ↩