Frequently Asked Questions 
Regarding Assembled Land Exchanges

Clearwater Land Exchange is a third-party facilitator involved in the assembled land exchange business. Clearwater Land Exchange was started in 1992 for the purpose of negotiating land exchange transactions, which would enable public land managers and private property owners the opportunity to realign land ownership patterns in a manner consistent with public laws and private property rights.

What is an assembled land exchange? Assembled land exchanges involve the assemblage of multiple ownership of public and private lands for the purpose of completing one or a series of land exchange transactions. Benefits of an assembled land exchange include:

• Reduced administrative and transaction costs on a per-acre basis to comply with the requirements of state and federal laws, regulations, and policies governing land exchanges.
• Greater flexibility and opportunities in meeting public and private land management objectives identified in land use and resource management plans.

Who is involved in assembled land exchanges? Multi-party assembled land exchanges often involve state and federal land management agencies, municipalities, Indian tribes, natural resource industries, conservation groups, and private individuals.

How is Clearwater Land Exchange compensated? The principle business of Clearwater Land Exchange is to purchase, sell, and exchange lands. Clearwater Land Exchange is a principal in the land exchange transaction with no fiduciary responsibility to any exchange participant. Clearwater Land Exchange is not licensed to conduct or practice real estate; therefore, no real estate fees or commissions are received. Clearwater Land Exchange negotiates with each private property owner on a willing buyer/willing seller basis. The purchase, sale, or exchange of lands is subject to a negotiated settlement acceptable to Clearwater Land Exchange and each of the private property owners in a land exchange. State and federal agencies are required by law to implement land exchanges on an equal value for equal value basis as determined in an independent or agency appraisal. There is no expenditure of public dollars paid to Clearwater Land Exchange for facilitating a land exchange. 

How does the public benefit from land exchanges? The public benefits in a variety of ways. Our land exchanges typically involve direct acquisition of private land for federal or state agencies. Conservation easements can also provide improved public access and resource protection of private land. 

How do Appraisals Work? How do I know the land exchange is fair? Federal law requires federal agencies to trade equal value for equal value. Values are determined by qualified, experienced, independent or agency appraisers. The agency participates in the selection of the appraiser. Appraisers follow detailed instructions dictated by the agencies involved. Additional scrutiny also comes from agency review appraisers. The governing laws include the Federal Land Exchange Facilitation Act (FLEFA) and the Federal Land Policy and Management Act (FLPMA).

What is the Role of Conservation Bankers? The window of opportunity can open and close quickly on the availability of environmentally sensitive property. For this reason, there is a need for conservation bankers to help buy and hold critical property that is ultimately exchanged to the appropriate federal or state agency. Some entity must be willing and able to buy and hold critical property. The Elk Foundation and the Nature Conservancy have played such a role and enabled us to complete exchanges. Whether the entity is a land trust, a private landowner or some other party, their role is critical to a successful transaction.

Can a private property owner complete a land exchange directly with a state or federal agency without involving a third-party facilitator in an assembled transaction? Yes.

So, why would a private property owner want to work with a third-party facilitator like Clearwater Land Exchange in an assembled land exchange? There are a number of reasons why private property owners benefit from participating in a third-party assembled land exchange, including:

• Limited agency budgets. State and federal agencies have limited budgets and personnel to facilitate land exchanges. This requires that agencies prioritize and limit the number of land exchanges to be completed. There is a greater opportunity for private property owners to participate in an assembled land exchange.
• Economy of Scale. Assembled land exchanges afford an economy of scale unavailable to private property owners in a direct land exchange. Private property owners generally have to cost-share with state and federal agencies in preparing timber cruise and appraisal reports, environmental analysis and other surveys, clearances, and documentation necessary to comply with state and federal laws and regulations. The cost per acre of processing an exchange is less in a large assembled land exchange versus that of a small direct exchange.
• Expertise. Private Property owners benefit from the expertise of third-party facilitators with experience in facilitating assembled land exchanges. Third-party facilitators are better informed concerning the laws and regulations governing the land exchange process.
• Limited risk. Third-party facilitators incur the risk involved in completing government land exchanges. A private property owner is under no obligation or responsibility to complete a transaction unless the exchange is in their best interest.