Eminent domain is a legal principle that enables government bodies to acquire private property for public use. While losing your property this way can be confusing and overwhelming, there is a silver lining. The law guarantees you, the property owner, a “just compensation.” This is a fair amount to compensate for the inconvenience caused.
But how is just compensation determined in a taking? Here’s what you need to know.
Done through a certified appraiser
Just compensation is primarily determined by the fair market value of the property. A certified real estate appraiser typically calculates this value. Here’s what they usually consider when determining the fair market value:
- The current usage of the property by the owner
- The property’s optimal use, considering its most profitable and legally allowable purpose
- Any existing restrictions or easements on the property, if any
- The condition of the property and any buildings on it
- The location of the property
- Comparable sales of other similar properties in the area
When a government entity, like a local city council or state department, shows interest in your property, it must follow certain procedures. One of the initial steps is getting an appraisal and finalizing the compensation using these factors.
Legal help during negotiations
The process of determining just compensation doesn’t end with their appraisal. After the assessment, negotiations typically take place between the property owner and the government entity. This can be challenging; sometimes, negotiations break down due to disagreements over the property’s valuation. If you and the government entity can’t agree on the amount of compensation, the matter can go to court. In a court case, both parties present each of their appraisals and evidence to support their valuations of the property. The court then makes a final decision on the amount of just compensation.
When an entity presents its interest in your property, you mustn’t feel backed against a wall and just accept any offer. You, as the property owner, have the right to a justified price when someone’s taking what’s originally yours. If you believe the initial offer represents the fair market value of your property, consider reaching out to a lawyer. They can protect your rights during initial negotiations and other legal processes.
