City Acquired Land Without Payment: Eminent Domain Violation?

Eminent domain is the term used in the United States to describe the inherent power of the state to seize a citizen's rights in property with due monetary compensation, but without the owner's consent. Your property may be taken for governmental use, or by delegation to third parties who intend to devote it to public use, or, in some cases, for economic development. Most commonly, your land can be taken for public utilities, highways and railroads, or for reasons of public safety. Many states--though not all-- require that the governmental entity offer to purchase your property before resorting to the use of eminent domain. Your property may not, under any circumstances, be taken without a fair and just payment.

Condemnation vs. Eminent Domain

The term "condemnation" describes the formal act of transferring the title to your property to the government. Condemnation vs. eminent indicates the government may be taking a lesser interest in your property, such as an easement, and in most cases of condemnation, the only thing to be decided is just compensation, although in certain cases the property owner may challenge a condemnation case, arguing that the property is not being taken for public use.

Eminent Domain

The exercise of eminent domain is not limited to real property as the government may also condemn personal property, such as supplies for the military in times of war. The government may also condemn intangible property such as trade secrets, copyrights, patents or contract rights, and, in fact, professional sports teams may be seized by eminent domain.

The Process

Eminent domain laws vary from jurisdiction to jurisdiction, however in general when a governmental entity wishes to acquire privately held land, they must do the following:

• Attempt to negotiate the purchase for fair market value
• If you do not wish to sell, they must file a court action to exercise eminent domain, and serve a public notice of the hearing.
• A hearing must be scheduled at which time the government must demonstrate it engaged in good faith negotiations to purchase the property from you, but no agreement was reached. They must also demonstrate that the taking of the property is for public use, then you will be given the opportunity to respond.
• If you are unsuccessful in your bid to stop the government's exercise of eminent domain over your property, fair market value of the property will be determined, and any payments you owe in the form of mortgages or liens will be paid with the remainder being paid to you, and the title to your property going to the government.
• If you are dissatisfied with the final outcome, you have the right to appeal the decision.

Fair Market Value

Fair market value is generally considered to be the highest price that somebody would pay for the property, should you have been a willing seller. If you do not agree with the the governmental assessment of fair market value, an appraiser will generally be brought in to assist with negotiations. The major problem with the concept of fair market value is that generally speaking, real estate can only be expected to go up in value, therefore if you purchased the property as an investment, and have no desire to sell, you could find, several years down the road, that the property you were forced to sell at fair market value is now worth three times what you received.

Legal Assistance

It is very worth your while to hire an experienced property attorney who has knowledge of the particular laws in your area governing eminent domain. It may still turn out that you have no choice but to submit to the eminent domain decision, but a skilled attorney can ensure you receive the best price possible for your property. If you were the victim of an eminent domain decision, and were never paid by the governmental entity, hire an attorney immediately who can either ensure your are compensated fairly, or will file a petition to reclaim your land.