Eminent Domain

Eminent Domain is the inherent power of the state to seize a citizen's private property, expropriate property, or rights in property, without the owner's consent. The property is taken either for government use or by delegation to third parties who will devote it to "public use or civic" or in some cases, economic development.

The most common uses of property taken by eminent domain are public utilities, highways, and railroads. Some states require that the government body offer to purchase the property before resorting to the use of eminent domain.

The process of eminent domain is usually done in 5 steps. The following steps are:

  • (1)The government attempts to negotiate the purchase of the property for fair value, considered to be the fair market value - that is, the highest price somebody would pay for the property, were it in the hands of a willing seller .
  • (2) If the owner does not wish to sell, the government files a court action to exercise eminent domain, and serves or publishes notice of the hearing as required by law.
  • (3)A hearing is scheduled, at which the government must demonstrate that it engaged in good faith negotiations to purchase the property, but that no agreement was reached. The government must also demonstrate that the taking of the property is for a public use, as defined by law. The property owner is given the opportunity to respond to the government's claims.
  • (4)If the government is successful in its petition, proceedings are held to establish the fair market value of the property. Any payment to the owner is first used to satisfy any mortgages, liens and encumbrances on the property, with any remaining balance paid to the owner. The government obtains title.
  • (5) If the government is not successful, or if the property owner is not satisfied with the outcome, either side may appeal the decision.

 

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