The Reversionary Interest Conveyance Act authorizes the sale of federal reversionary interests in specific Sacramento, California, land parcels to current landowners at fair market value.
Doris Matsui
Representative
CA-7
The Reversionary Interest Conveyance Act authorizes the sale of federal reversionary interests in approximately 8.43 acres of land in Sacramento, California, to current landowners. Eligible owners may purchase these interests at fair market value, with all associated administrative and appraisal costs covered by the buyer. Proceeds from these sales will be deposited into the Federal Land Disposal Account.
Sacramento Land Deal: Federal Government to Sell Future Ownership Rights on 8-Acre Tract
Ever heard of a "reversionary interest"? It’s basically a legal "dibs." For about 8.43 acres in Sacramento, the federal government currently holds a right that says if the land stops being used for a specific purpose, ownership reverts back to the U.S. Bureau of Land Management. The Reversionary Interest Conveyance Act changes that by allowing the current private landowners to buy out the government’s "dibs" once and for all, giving them full, clear title to their property.
Cleaning Up the Title
Under Section 2 of the bill, if you are the recorded owner of a parcel within this specific Sacramento area, you can ask the Secretary of the Interior to sell you the federal government's remaining rights. Once you make the request, the government has a two-year deadline to offer the interest to you and finalize the deal. This is a big win for property owners who want to develop, sell, or refinance their land without the headache of a federal ghost hovering over their deed. For a small business owner or a developer in the area, this removes a massive layer of red tape that usually makes banks nervous.
The Price of Total Ownership
This isn't a federal giveaway. The bill is very specific about the math: buyers have to pay at least the "fair market value" for these rights. Section 2 mandates that the price be determined by professional appraisals that meet strict federal standards (the Uniform Appraisal Standards for Federal Land Acquisitions). On top of the purchase price, the landowner has to cover all the paperwork costs—surveys, appraisals, and administrative fees. The money collected doesn't just disappear into a general fund, either; it’s earmarked for the Federal Land Disposal Account to help manage other public land transactions.
Protecting the Tracks
While the bill clears up ownership for the neighbors, it makes sure the local infrastructure stays intact. Section 3 includes a "statutory construction" clause that protects existing railroad rights. Specifically, it ensures that the right-of-way for the Southern Pacific Transportation Company remains at least 50 feet wide from the center of the tracks. It also clarifies that this bill isn't a loophole for people trying to claim land through "squatter's rights" (adverse possession) or abandonment—if the railroad hadn't already legally transferred the property before this bill, this law won't suddenly make those outside claims valid.