Just Compensation for TCEs

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).

TCE memo

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.

  1. A TCE is a temporary property encumbrance for a specific anticipated use over a specified duration of time.