Eminent Domain FAQ

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Q: Do I have to pay for a lawyer to defend me against condemnation?

  • A: Condemnation can be quite involved, so you would benefit from the experience and knowledge of a lawyer who specializes in this area. Normally, the agency will not reimburse you for the costs you have as a result of condemnation proceedings. The agency will reimburse you, however, under any of the following conditions:
    • The court determines that the agency cannot acquire your property by condemnation
    • The condemnation proceedings are abandoned by the agency without an agreed upon settlement
    • You initiate an inverse condemnation action and the court agrees with you that the agency has taken your real property rights without the payment of just compensation, or the agency elects to settle the case without further legal action

    he agency may also be subject to state laws that require reimbursement for these or other condemnation costs.


Q: How will I know if my property is being considered for a government project?

  • A: The property owner is notified as soon as possible of:
    • The Agency's interest in acquiring your property
    • The Agency's obligation to secure any necessary appraisals, and
    • Any other useful information.

    Notification should be no later than during the appraisal of the property.


Q: The agency only wants part of my property, but what would be left is worthless. What can I do?

  • A: Agencies usually only purchase what is needed. If the Agency determines that the remainder property will have little or no value or use to you, the Agency will consider this remainder to be an uneconomic remnant and will offer to purchase it. You will have the option of accepting the offer for purchase of the uneconomic remnant or of keeping the property.


Q: What does the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 have to do with Eminent Domain?

  • A: The act is typically referred to as the "Uniform Act." The act provides for fair and equitable treatment of persons whose property will be acquired or who will be displaced because of programs or projects financed with federal funds. Congress amended and updated the Uniform Act in 1987.


Q: What if we can't agree on a price for my property?

  • A: In many States, a board of viewers or commissioners, or a similar body, will initially determine the amount of compensation you are due for the property. You and the agency will be allowed to present information to the court during all proceedings. If you or the agency are dissatisfied with the board's determination of compensation, a trial by a judge or a jury may be scheduled. The court will set the final amount of just compensation after hearing all arguments.


Q: What is condemnation?

  • A: If an agreement cannot be reached between the agency and the property owner to complete the acquisition of the property, the agency can acquire the property by instituting formal condemnation proceedings with the appropriate state or federal court.


Q: What is Eminent Domain?

  • A: Eminent domain is the power of the government to take private property for public use. Federal, state and local governments along with some quasi-public agencies (such as airport authorities, highway commissions, and community development agencies) and some non-governmental organizations such as utility companies, or a private person using federal financial assistance for a program or project, are authorized to use eminent domain.

    Under the Fifth Amendment to the constitution, private property owners are entitled to just compensation for any property taken under eminent domain. The Fourteenth Amendment applies the guarantee of just compensation on the state level.

    Property is taken to benefit the public's interests.


Q: What is the appraisal used for?

  • A: The appraiser is responsible for determining the initial fair market value of the property. The appraiser's report is used to establish the "just compensation" to be offered for the property.

    If you elect to donate the property and release the Agency from the obligation of performing an appraisal, or the fair market value of the property is less than $2,500, an appraisal isn't needed.


Q: When does an agency decide what property is needed for a project?

  • A: Generally, an agency determines what specific property needs to be acquired for a public project or program only after the project has been planned and government requirements have been met.


Q: Who pays for all the "extra" costs associated with selling a piece of property?

  • A: Incidental expenses will also be paid or reimbursed. Incidental expenses are all those reasonable expenses incurred as a result of transferring title to the agency, such as:
    • Recording fees, transfer taxes, documentary stamps, evidence of title, surveys, legal descriptions of the real property, and other similar expenses necessary to convey the property to the Agency. The Agency, however, is not required to pay costs required solely to perfect your title (that is, to assure that the title to the real property is entirely without fault or defect).
    • Penalty costs and other charges for prepaying any preexisting recorded mortgage entered into in good faith encumbering the real property
    • The pro-rata share of any prepaid real property taxes for after the agency obtains title to the property or takes possession of it, whichever is earlier.


Q: Will I be offered at least the fair value of my property?

  • A: This amount will never be less than the fair market value established by the approved appraisal.


Q: Will the appraiser consider only the present use of the property in the appraisal?

  • A: Generally, the appraiser will consider the best use of the land at the time it is acquired. The appraiser will inspect your property and note its physical characteristics. He or she will review sales of other properties similar to yours in order to compare the facts of those sales with the facts about your property. The appraiser will analyze all elements that affect value.

    By law, the appraiser must disregard the influence of the future public project on the value of the property. However, the appraiser must consider normal depreciation and physical deterioration that has taken place.

    If buildings, structures or other improvements considered to be real property are located on the property to be acquired, the Agency's offer must include at least an equal interest in these.


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