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Approved 6/2022 2 <br />funding partners. All other deliverables must be approved if submitting an update. No <br />appraisals, supplemental appraisals, updated opinion letters, or reaffirmation letters by <br />the appraiser for the original appraisal will be accepted 30 days before a potential closing <br />date or end of a contract. Please note: the N.C. Department of Agriculture and <br />Consumer Services does not provide tax or legal advice to entities or individuals. <br />Before considering a supplemental appraisal, updated opinion letter, or reaffirmation <br />letter by the appraiser for the original appraisal within 60 of the potential closing, <br />consult with your appraiser and tax or legal advisors. <br />7. The appraiser must prepare two opinions of the value of the subject property: one before <br />placement of the conservation easement and the second after placement of the <br />conservation easement. The after condition or second value will be based upon a <br />hypothetical condition that the conservation easement is in place and the effects on the <br />value that may be created. The difference in the two values is the proposed conservation <br />easement's effect on the property's value. <br /> <br />8. The property rights, such as mineral, water, timber, and hunting, must be owned in fee <br />simple terms by the current landowners. Surface rights, such as structures, barns, hay <br />sheds, fencing, orchards, or other plantings, and any irrigation water rights, including but <br />not limited to wells, ditches, ponds, and lakes that provide irrigation on the subject <br />property and are legally permitted, may be appraised. Crop base and allotments, <br />including other plantings on the subject property, may be appraised and included in any <br />valuations. <br /> <br />9. The highest and best use conclusion must be supported by market evidence. A <br />noneconomic highest and best use, such as "forever wild" or "natural lands," or any use <br />that requires the property to be withheld from economic production in perpetuity, is not a <br />valid use upon which to base an estimate of market value. Nearby transactions <br />comparable to the land under appraisement and reasonably current may provide the best <br />evidence of market value. <br /> <br />10. Every effort must be made to provide comparable conservation easement encumbered <br />sales. A sales adjustment chart that summarizes the adjustments, shows the final adjusted <br />sale price, and how the sales compare with the subject property is required. Market <br />evidence and supporting narrative shall be provided for each adjustment used. <br /> <br />11. The contract appraiser must be aware that all appraisal reports completed for ADFPTF <br />grants will be used by staff who will rely on the details in the report to understand the <br />property and market characteristics. The appraisal report must include the level of detail <br />necessary to thoroughly explain and support the property description, highest and best <br />use analysis, market characteristics, adjustment process, and all conclusions so that all <br />users have an adequate understanding of the statements, opinions, and conclusions <br />offered within the report. <br /> <br /> <br /> <br />DocuSign Envelope ID: 480AFBD4-654C-48FA-9CB8-F7C8D7E98DB2