This bill prohibits state and local governmental entities, including planning commissions, from requiring a right-of-way dedication that requires a landowner to transfer ownership to any portion of the landowner's property located along an existing public right-of-way to the governmental entity as a condition of approving any application made to the governmental entity.
Under this bill, a governmental entity may require a right-of-way reservation as a condition of approving any proposed subdivision of a property, subject to the following:
(1) If a governmental entity requires a right-of-way reservation, then the landowner has the choice of agreeing to a right-of-way reservation or a right-of-way dedication;
(2) If a landowner, who has agreed to a right-of way reservation pursuant to item (1), transfers the applicable property to another person, then that new landowner may convert the right-of-way reservation into a right-of-way dedication through a process determined by the governmental entity;
(3) If the governmental entity diminishes the distance of the required right-of-way in the adopted major road plan or major street plan, as applicable, following the creation of a right-of-way reservation, then the right-of-way reservation automatically diminishes to reflect the new distance in the adopted major road plan or major street plan, as applicable; and
(4) If a governmental entity takes possession of the property covered by the right-of-way reservation, then the landowner of the property is entitled to just compensation as required by law.
This bill also specifies that a real estate licensee has no duty to inform any party to a real estate transaction concerning a right-of-way reservation or any rights attached to the real estate with regard to the above-described provisions of this bill.
Under this bill, a "right-of-way reservation" means:
(A) An agreement between a landowner and a governmental entity whereby the landowner is prohibited from erecting a permanent building within an area designated as the location of a future right-of-way in the major road plan or major street plan; and
(B) A reservation that does not affect the application of the existing right-of-way for determining the placement of easements or setbacks.