UNDERSTANDING EMINENT DOMAIN

Outlined in the Fifth Amendment to the U.S. Constitution, eminent domain refers to the right of local, state, and federal governments to seize private property for public use. Under eminent domain, the government agency must provide “fair” payment of compensation to the property owner. Although many government takings involve real estate property, eminent domain is not solely limited to real property.

In fact, eminent domain may apply to the following types of private property:

• Land
• Real estate
• Franchises
• Intellectual property
• Stocks
• Buildings
• Airspace
• Contracts
• Leases
• Investment funds

Additionally, the government may seize either an entire property or part of it, temporarily or permanently.

The process of taking private property is known as “condemnation proceedings.” During condemnation proceedings, the property owner may challenge the legality of the seizure under eminent domain, as well as the fair market value offered for the property as compensation.

RIGHTS OF PROPERTY OWNERS IN EMINENT DOMAIN CASES

Under the Fifth Amendment, property owners must be justly compensated—i.e., they must receive the fair market value in compensation for their property—in government takings. Unfortunately, property owners are not the ones who get to decide what the “fair market value” of their property is; that is left up to the government agency engaged in eminent domain.

Most often, the government entity will hire an independent appraiser to come in and assess the value of the property being expropriated. In many cases, the assessment by the independent appraiser is based on older sales and does not accurately reflect the fair market value of the property. These appraisers are often interested in simply obtaining a uniform value for all properties involved.

As the property owner involved in an eminent domain case, you have the following rights:

• The right to receive the actual fair market value of your property
• The right to contest the appraiser’s valuation of your property
• The right to challenge the validity of the expropriation under eminent domain
• The right to view the appraisal that the purchase offer is based on
• The right to be compensated for relocation costs (in certain instances)
• The right to refuse the initial purchase offer
• The right to work with an eminent domain attorney

It is important that you understand and protect your rights. Most importantly, you have the right to seek counsel from an experienced government takings attorney, like those at Potts Law Firm. An attorney will be able to further explain your rights and ensure that your best interests are protected throughout the legal process.

CAN YOU STOP EMINENT DOMAIN?

While you have the right to take legal action against a government entity that is attempting to condemn your property under eminent domain, you should know that property owners face an uphill battle when it comes to stopping eminent domain. Generally speaking, the only way to successfully stop eminent domain is to prove that the government does not plan to use your property for a justified public use.

However, there are other instances in which you may wish to take legal action following government takings. One common reason for eminent domain legal action is the improper valuation of property and unjust compensation based on inaccurate fair market value. In other words, if you believe that the government agency has failed to offer full compensation for the fair market value of your property, you could be entitled to compensation for your damages.

COMMON DAMAGES IN EMINENT DOMAIN CASES

The various damages available in eminent domain matters vary from case to case. That being said, some of the most common types of damages in these cases include:

• Differences in the valuation of property based on the comparable sales
• Denial of access
• Line of sight
• Damages to the remainder
• Highest and best use of the property
• Different valuations for independent economic units

Our eminent domain attorneys at Potts Law Firm can review your case and determine whether you have grounds for a claim. We can also assess the types and value of damages you may be entitled to receive. Reach out to our firm right away to schedule a no-cost, no-obligation consultation.