When a business is fully taken, how is loss of goodwill typically handled?

• A. Provide relocation assistance only
• B. Notify them and send a goodwill packet to the owner in writing (by mail or email)
• C. Deny compensation for goodwill
• D. Record the sale and transfer title

Answer: (B)

When a business is fully taken, you handle goodwill by informing the owner in writing and sending a goodwill packet that explains the compensation process. This written communication creates a formal record and gives the owner clear information about the value of goodwill, eligibility, and the steps to pursue compensation, along with contact details and timelines. Providing the packet ensures due process and helps prevent disputes later.

Relocation assistance may be part of the overall package, but it alone isn’t the complete action for a full taking. Denying compensation for goodwill isn’t appropriate because there are established rights and processes to evaluate and provide compensation for intangible value. Recording the sale and transferring title happens as part of closing the transaction but doesn’t address the owner’s rights or the goodwill compensation process.