Texas Attorney General Opinion: LO98-082 Page: 2 of 5
5 p.View a full description of this text.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
The Honorable Robert Junell - Page 2
Local Government Code section 272.001(h), about which you ask, permits a municipality
of a certain size to sell a lakeshore lot to the current lessee for a price equal to the fair market value
of the land:
A municipality having a population of 250,000 or less and owning land
within 5,000 feet of where the shoreline of a lake2 would be if the lake were
filled to its storage capacity may, without notice or the solicitation of bids,
sell the land to the person leasing the land for the fair market value of the
land as determined by a certified appraiser. While land described by this
subsection is under lease, the municipality owning the land may not sell the
land to any person other than the person leasing the land. [Emphasis and
footnote added.]
Without subsection (h), a municipality with a population of 250,000 or less that desires to sell
lakefront property would have to comply with subsection (a) of section 272.001, which requires a
political subdivision that wishes to sell or exchange its land to notify the public of the offer and the
procedure by which interested persons may bid to purchase or exchange the property.
Before we consider your questions, we believe a short discussion of relevant real-property
law may be helpful. The city, as owner of a lot adjacent to Lake Nasworthy, held the lot as an estate
in fee simple until the city leased the lot. By definition, the owner of a fee simple estate owns the
estate absolutely, unencumbered by any other interest or estate.3 When the city leased the lot, it
divided its estate between itself, as lessor, and the lessee: The city now holds a leased fee estate,
which includes the right to be paid rent for the term of the lease and a reversionary interest, and the
tenant holds a leasehold estate, which includes a right to possess the property and an obligation to
pay rent for the lease term.4
The meaning of the phrase "fair market value of the land does not appear to be controversial.
We have previously defined the phrase "fair market value of property" to denote the amount that a
willing buyer, who desires but is not obligated to buy, would pay a willing seller, who desires but
is not obligated to sell.' This definition is in accord with numerous Texas court decisions.6 In our
ZLocal Government Code section 272.001(h) defines the term "lake" to mean "an inland body of standing
water, including a reservoir formed by impounding the water of a river or creek but not including an impoundment of
salt water or brackish water, that has a storage capacity of more than 10,000 acre-feet."
3See APPRAISAL INSTITUTE, THE APPRAISAL OF REAL ESTATE 137 (11th ed. 1996).
4See id. at 138, 534.
5See Attorney General Opinion DM-441 (1997) at 4; cf Atterbury v. Brison, 871 S.W.2d 824, 827 (Tex. App.--
Texarkana 1994, writ denied); Keeton v. State, 803 S.W.2d 304, 305 (Tex. Crim. App. 1991) (en banc) (interpreting
Penal Code 31.08(a)(1)); APPRAISAL STANDARDS BOARD, UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL
PRACTICE 163 (1998 ed.) [hereinafter USPAP] (defining "market value"). See generally 16 WORDS & PHIRASES Fair
Market Value (1959 & Supp. 1997) (and cases cited therein). The Texas Appraiser Licensing and Certification Board
(continued...)(L098-082)
Upcoming Pages
Here’s what’s next.
Search Inside
This text can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Text.
Texas. Attorney-General's Office. Texas Attorney General Opinion: LO98-082, text, September 28, 1998; (https://texashistory.unt.edu/ark:/67531/metapth277378/m1/2/: accessed July 13, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.