Acquiring real property can change a person’s life. Whether they purchase or inherit the property, they may be able to use it as their primary residence or as a space in which they operate a business.
Typically, real property owners control their holdings until they die or transfer ownership to an outside party. Most of the time, ownership transfers are amicable, if not downright profitable.
Occasionally, those who own real property may find themselves compelled to sell their houses, commercial facilities or land. Eminent domain laws allow for the forced sale of real property. When do eminent domain claims deprive owners of their interest in real property?
When there is a public project nearby
State statutes extend eminent domain authority to government entities and organizations completing projects for public benefit. Under eminent domain statutes, property owners may have an obligation to sell their property for highway expansions and other projects intended for the benefit of the public.
When owners face eminent domain claims, they have several options. They can ask for an assessment of the plan to show that their property isn’t necessary. They can challenge the claim that the project is for public benefit rather than private profit. They can also counter the amount of compensation offered by proving that it is unjust because it is far below the fair market value for the property.
Real property owners concerned about the impact of eminent domain claims may need the support of a real estate attorney. Initiating litigation or assertively negotiating could protect property owners from the forced sale of their holdings or ensure the terms set are at least reasonable.