What Is Meant By Eminent Domain

The Power Of The Government

The good thing about eminent domain is that knowing the law gives you the power to negotiate with the government. You do not have to just accept whatever offer the government throws at you for your property. If they can prove the property is needed for public use, then they can progress to the state where they will begin to negotiate with you over the fair market value.

The government is likely to use their power to start by giving you an offer that is on the lower end of the spectrum. From there, the negotiation is going to begin to try and get to a price that you believe is fair based on the property value in your mind. In the event that no agreement can be reached, it can go to court. In this instance, a judge can help decide and ultimately rule on what the fair compensation is actually going to be.

The power of the government lets them start the process of trying to seize your property. The key to remember is that it does not give them the power to just take it without giving you anything in return. Even if you cannot come to an agreement on a fair price, you can rely on the court system to help you at least get compensated in a more justified manner.

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How Eminent Domain Works In Real Estate

If you own property, how might eminent domain impact you? What steps will a government take if it wants to claim your property for a public project?

Theres a process to eminent domain. The government wont show up and say theyre taking your land tomorrow. Instead, they must follow a series of steps.

Lets say the government wants to expand a highway to relieve traffic congestion. To make that plan work, it needs to purchase your residence and demolish it.

What usually happens is that the governmental authority that wants your land will offer to buy your property at a specific price. If you accept the offer, the sale goes forward and you can use the proceeds to find a new place to live. If you dont like the offer, you can negotiate for more money.

If you dont wish to sell under any circumstance or cant come to an agreement on a price, these differences are resolved in a condemnation proceeding.

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What Can I Do About Eminent Domain Abuse

The website features an Eminent Domain Abuse Survival Kit, which offers tools and information to fight eminent domain, including timelines of the typical condemnation process, links to friendly organizations that can help battle condemnation, and outreach advice. If citizens band together, they can stop the bulldozers, said Bullock.

What does eminent domain mean in real estate?

Eminent domain: the governments right to purchase private property to complete a public project. Ideally, the government will offer you an amount that reflects or exceeds the value of your property.

Can a private business use eminent domain for public use?

Despite explicit limitations in the U.S. Constitution and nearly every state constitution that allow condemnations only for public usesuch as for public buildingsfor the past 50 years, unrestrained local and state governments across the nation have taken property for private businesses in the name of economic development.

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The History Of Eminent Domain

The definition of eminent domain would not be complete without understanding where this concept originates. According to the Free Dictionary by Farlex, the idea of eminent domain stretches as far back as the Biblical era. Eminent domain came to America with the adoption of common law principles from England, and it has been upheld by federal and state laws since then. In the early years of European settlement in America, eminent domain was applied liberally and frequently, mostly because the country had an abundance of land that could be procured cheaply. A person who lost a parcel of property could usually acquire another quickly and easily. Accordingly, throughout the history of our country, ordinary citizens have been forced to question what is eminent domain?

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Examples Of Eminent Domain

In 1876, the Supreme Court issued its first ruling on eminent domain in Kohl v. United States. The case was brought to the court by an Ohio landowner who opposed the government taking his land to develop a post office and other public buildings. The court upheld the governments right to eminent domain.

A more recent example occurred in the early 1990s, when Donald Trump and his real estate development company tried to compel a New Jersey woman to sell her home, where shed lived for more than 30 years, so that he could build a parking lot for limousines. She refused to sell, so he turned to a government agency, which asserted eminent domain. The woman proved in court that the eminent domain would only serve to benefit the developer, because there was nothing stopping him from further developing his own private property in this case, the landowner prevailed.

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Chicago Burlington & Quincy Railroad Co V City Of Chicago

This case established eminent domain powers used by the state. Before this case, eminent domain powers were unregulated by the Fifth Amendment, which meant states could seize property for public use without compensation.

In the late 1890s, the city of Chicago wanted to connect a section of a road, which needed to cut across private property. Chicago condemned the land through a city petition and paid compensation to the property owner. The Quincy Railroad Company also owned part of the land and was awarded only a dollar, which provoked them to appeal.

The court ruled the state could take the land using eminent domain power if the original owners were awarded any form of compensation. The seizing of the land didnt prevent any of the companys use, including railroad tracks.

How Is Eminent Domain Different Than Land Condemnation

Although related, its important to note the difference between the two. We discussed that eminent domain laws are meant to provide compensation to landowners. But in the case of land condemnation, no compensation is given.

Land condemnation only happens when eminent domain cant be used. In other words, its when the federal government doesnt have the right to take your land. Land condemnation is used when the federal government takes your land immediately as opposed to at a future date. Eminent domain is meant to be used when the project will have long-term benefits for the general public. Land condemnation, on the other hand, is done to address an immediate issue, such as an emergency, a public safety, or a public utility issue.

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Currently Counties Cities And Housing Authorities In Georgia May Exercise Redevelopment Powers Including The Power To Sell Or Otherwise Dispose Of Property Acquired By Eminent Domain To Private Enterprise For Private Use

The Kelo decision is one of the most controversial decisions issued by the Supreme Court in recent memory. Because the decision makes clear that state legislatures can limit eminent domain authority, the issue of whether and how to do so is one of the hottest currently facing lawmakers. As shown above, there already has been a burst of legislation attempting to deal with the Kelo ruling. In a rare display of unanimity that cuts across partisan lines, lawmakers in virtually every state are advancing bills and constitutional amendments to limit the use of eminent domain to take property for economic development purposes.

As it turns out, according to a press release issued by Susette Kelos attorneys at the Institute for Justice, the little pink house in New London, Connecticut that started a nationwide property rights revolt still stands one year after the U.S. Supreme Court heard arguments and then eventually ruled that it could be torn down for private development. Susette Kelo and her neighbors still remain in their houses. Shortly after the Kelo decision, the state legislature and the governor of Connecticut established a moratorium on all takings for economic development while the legislature revisited the law. In February 2006, the City Council unanimously voted to find a way to save the homes. Susette Kelo states that she has no plans to move out of her little pink house.

Endnotes

How Does Eminent Domain Work

The process of eminent domain starts when the government or agency has a public interest project. This project would then need to be in a specific location that gives the greatest return to the public.

Once they have identified a specific property, an agent will evaluate it to determine its fair market value. So, the amount determined by the agent will represent the compensation that the owner of the property will receive in return.

The appraiser must be independent, accredited, and knowledgeable about the property.

After the fair market value is determined, the offer gets presented to the owner. But, if the owner finds this unreasonable, they have the right to hire an appraiser. If the buying party and owner canât agree, then negotiations may begin.

That is why the owner should have an attorney throughout this process. A real estate attorney can ensure that the owner is aware of their rights.

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Compensation For Condemned Property In North Carolina

If the government uses eminent domain to take your land, they must compensate you for it. The amount of compensation varies depending on the value of the land. If the land is a home, then the government must pay the fair market value of the home.

This can be more or less than what you paid for it. If its less than you paid, you can even refuse the offer.

If the land is not being used as a home, then the government must pay the fair market value of the land. This can be anywhere from $2 to $50 an acre or more. In many cases, the government will also have to pay for any improvements that have been made to the land.

How Does Eminent Domain Work In North Carolina

Local governments must provide clear guidelines for eminent domain. In North Carolina, for instance, local governments must follow state and federal guidelines.

Specifically, the North Carolina General Statute §160A-343 states that all governing bodies must follow the North Carolina Eminent Domain Code. Here is the process of eminent domain, including the following steps:

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What Is An Example Of Eminent Domain

In the United States, one of the most common examples of eminent domain is when the government is trying to build a road and the road’s path is obstructed by private property. Other examples include municipal buildings, public schools, or parks. Sometimes there’s simply no other place to put the public property.

What Does The Law Say About Eminent Domain In Georgia

As a result of Kelo v. New London and what many thought was a clear case of government overreach, many state legislatures placed restrictions on the states ability to exercise eminent domain powers. In that case, a private developer won an eminent domain taking for a redevelopment plan in Connecticut. In response, the state of Georgia amended its constitution in 2006. Any eminent domain taking in the state must be for public use. The amendment requires elected county officials, not appointed officials, to approve the condemnation.

At the same time, the legislature enacted a Landowners Bill of Rights, which affects who can take land and for what purpose, narrowing the governmental authority of eminent domain to remove some interpretations of eminent domain authority.

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What Should A Homeowner Do When He Or She Receives Notice

It is important that a homeowner does not ignore the notice he or she receives. It should be taken seriously. Homeowners should contact an attorney to look over the paperwork and explain exactly what is happening. The attorney should also look over the intended use to ensure it is fair. In addition, a proper appraisal should be done to ensure the compensation is indeed adequate for the property being taken.

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Eminent Domain: What Does It Mean For You

On Behalf of Nearhood Law Offices, PLC | Feb 8, 2022 | Residential Real Estate Transactions |

In the United States, governments have the authority to take private land if its being used for public use. This doesnt mean that the property owner just has to accept whats going on. Theyre entitled to be fairly compensated for the property, and this sometimes causes a problem.

There are instances in which the property owner wont agree with the government about what compensation is due. This can trigger a legal process that isnt necessarily aimed at stopping the government from taking the land but is meant to get the landowner a fair price for it.

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Can Eminent Domain Be Stopped

The only way to stop eminent domain is to challenge the government’s right to take. You can only do this if the government’s proposed taking does not meet the requirements for public necessity or public purpose. Even if you lose this challenge, you may still be entitled to a small portion of your property.

What Is The Purpose Of Eminent Domain

Eminent domain is the governments right to take private property for public use. This may include land for public roads, schools, highways, utilities like water or electricity lines, or even public parks. Governments can only take private property via eminent domain if the property owner has agreed to a condemnation or a conditional sale of their land.

The Fifth Amendment of the U.S. Constitution allows for this practice so long as landowners are fairly compensated for giving up their property rights.

The U.S. Supreme Court described eminent domain in a 1905 case as a function both legitimate and necessary. Though it may sound ominous, eminent domain is actually a critical part of the nations infrastructure.

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When Is Eminent Domain Used: Examples Of Eminent Domain

Eminent domain is supposed to be used when there is a public need, though what form that need takes is often left to the condemning authority. The government may permanently take your land, temporarily take your land, or simply take some rights on your land and allow you to keep the land itself.

An example of eminent domain could be an individual owning several acres of land near a school. The government decides to expand the school as the community grows and starts an eminent domain proceeding to take some or all of their property.

Or, lets say a utility needs to run a conduit of some sort across your land. It may temporarily take the land to build the conduit, and then permanently take an easement on the land to maintain it leaving you with the land, but limiting how you can use it.

More often, eminent domain is used by the Georgia Department of Transportation . The majority of eminent domain proceedings involve building or expanding roads. Perhaps you own a gas station on a corner, and GDOT determines that a new turn lane is needed to increase traffic safety and flow. They may take a piece of your property.

Why Is Eminent Domain Good

When your property is in the crosshairs of an eminent domain taking, understand that there may be a good reason for it. A larger school means more teachers and resources for school children in the community. A road project may improve flow and safety for drivers, cyclists, and pedestrians.

If there were no eminent domain, communities could be prevented from growing. Necessary services could be limited. And, generally speaking, a community could theoretically be held hostage by a few people who either wanted an unreasonable price for their land or simply wanted to oppress their neighbors.

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Public Use In Eminent Domain

Public use may sound pretty obvious, but it is actually quite nuanced. While we usually think of a road like I-40 or a state park as being available for the public to use, but public use can also refer to something such as a pro football stadium or for economic re-development.

In the highly controversial Kelo v. City of New London , the United States Supreme Court determined that the city could take the houses of private citizens and transfer the property to a private owner for development. They determined it was public use because there was a general public benefit of economic growth to the community. After this case, the houses were demolished and the developer was unable to find financing, leaving the property as an undeveloped empty lot. If there is any consolation to this, it is that the homeowners were required to be given just compensation for the property.