{"id":21387,"date":"2021-01-29T11:46:23","date_gmt":"2021-01-29T19:46:23","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=21387"},"modified":"2024-05-28T21:36:22","modified_gmt":"2024-05-29T04:36:22","slug":"what-is-eminent-domain","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/what-is-eminent-domain\/","title":{"rendered":"What Is Eminent Domain? The Government Can Force You to Sell Your Home"},"content":{"rendered":"

Disclaimer:<\/i><\/b> Information in this blog post is meant to be used as a helpful guide and for educational purposes only, not legal advice. If you need assistance with an eminent domain situation, please contact a skilled real estate attorney.<\/i><\/p>\n

A freeway expansion<\/a>, a bridge project<\/a>, a new sports arena, an updated power plant \u2014 the government is initiating a new community project . . . on your land. Crazy as it sounds, the government has the constitutional right to acquire your land for public use so long as it pays just compensation for it through what is known as eminent domain<\/a>.<\/p>\n

If you\u2019re subject to eminent domain, you need to learn your legal rights to resolve the situation in the most favorable way possible. We\u2019ll help you get started with a clear-cut breakdown of eminent domain, informed by advice from real estate attorneys from across the U.S.<\/p>\n

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<\/a> Source: (Clay Banks \/ Unsplash)<\/figcaption><\/figure>\n

The Fifth Amendment outlines eminent domain<\/h2>\n

The Constitution\u2019s Fifth Amendment grants the government the right to eminent domain<\/a> in a provision that states, “private property shall not be taken for public use, without just compensation.” Let\u2019s break down these terms:<\/p>\n

Just compensation<\/h3>\n

Whether federal or state<\/a>, the government can seize private property if it pays the owner the equivalent of its fair market value<\/a>. But that\u2019s not an objective figure understood by all parties. Rather, fair market value generally means the sale price that a willing and well-informed buyer would pay<\/a> to purchase the property on the open market. The amendment also grants property owners the right to challenge the legality of the seizure.<\/p>\n

\u201c\u2018Just compensation\u2019 is a fluid concept and depends on the art of valuation and the costs everyone will invest in litigating,\u201d shares Rajeh A. Saadeh<\/a>, a New Jersey-based real estate attorney, investor, professor, and an expert on the subject of eminent domain.<\/p>\n

Public use<\/h3>\n

The government can only justify eminent domain if it is seizing private land for public use. Public use includes projects like roadways, bridges, public parks, buildings, schools, and facilities like water, power, and gas. The government may also employ eminent domain in wartime for defense reasons<\/a>.<\/p>\n

Beyond these purposes, public use remains a somewhat fluid concept that may apply to other government projects, as well. In a 2005 ruling, for instance, the Supreme Court ruled that \u201cpublic use\u201d extends<\/a> to general benefits a community would enjoy from a boost in economic development. However, in 2006, the Minnesota state legislature enacted a law that prevented eminent domain seizures based on economic benefit alone.<\/p>\n

Here\u2019s an overview of the eminent domain process<\/h2>\n

If you\u2019re the subject of eminent domain, here\u2019s a preview of the events to come:<\/p>\n

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  1. The government agency first inspects<\/a> the property to determine fair market value. HUD guidance stipulates<\/a> that the fair market value \u201cshould be determined by an independent state-licensed or state-certified appraiser.\u201d As the homeowner, you will receive notice of the appraisal, so you or your real estate agent may accompany the appraiser while they evaluate your home.<\/li>\n
  2. As the homeowner, obtain a copy of the appraisal<\/a> so you can anticipate the government\u2019s offer and plan with your attorney accordingly.<\/li>\n
  3. The government will make you an offer at or above the appraiser\u2019s assessed fair market value, typically within 45 to 60 days<\/a> following the appraisal. The offer will include a “summary statement” explaining the basis for the offer.<\/li>\n
  4. Once you receive the offer, you may negotiate with the agency until both parties reach a satisfactory agreement. You\u2019ll sign a purchase contract and receive payment at a mutually acceptable time.<\/li>\n
  5. If you\u2019re unable to reach an agreement, the agency may file a lawsuit to acquire your property through an eminent domain proceeding in court. You have the right to receive notice of the proceeding and the right to a fair hearing before the award is made final. Typically, notice must be sent 90 days before the hearing<\/a> if the property is occupied, or 60 days before if it is not.<\/li>\n<\/ol>\n
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    <\/a> Source: (Romain V \/ Unsplash)<\/figcaption><\/figure>\n

    You can negotiate for a higher sale price and better terms<\/h2>\n

    As soon as you receive notice of eminent domain, contact a lawyer who is well versed in real estate law<\/a>. Your attorney will serve as the liaison between you and government representatives. They’ll negotiate on your behalf to secure the best offer possible and represent you in court if both parties cannot reach an agreement.<\/p>\n

    \u201cAlways negotiate with the government when you are in an eminent domain situation. Many individuals often forget that the government has a budget and could easily exceed a property\u2019s worth,\u201d advises Carlos Del Rio, a real estate attorney in Chicago<\/a>.<\/p>\n

    Here are some of the items your lawyer can help you negotiate:<\/p>\n