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When is real property at risk of condemnation?

Buying a home, or even vacant land, is a significant investment. People may want to use a property to produce income or to provide them with a stable and affordable place to live indefinitely. Most of the time, property owners get to decide what happens to the homes, commercial real estate and vacant land they acquire.

Unfortunately, some people lose that right due to legal action taken by municipal authorities. Sometimes, local authorities may initiate condemnation proceedings which effectively force the sale of real property without the consent of the property owner. If the property owner doesn’t agree to sell, the condemning authority can take them to court and force the transaction to occur.

When is someone’s real property at risk of condemnation?

Condemnation is part of eminent domain rules

Although individual ownership rights have strong protection under the law, there are scenarios where the government can subvert those rights. Eminent domain is the governmental authority to force the sale of real property for public benefit.

In scenarios where there are large projects underway intended to benefit the community, authorities can condemn homes and require that owners sell them. Highway expansions, new utility infrastructure and other projects intended for the benefit of the community as a whole can lead to condemnation. Often, property owners receive an offer for sale before condemnation. The matter only goes to court if they refuse.

During condemnation, real property owners should receive a reasonable fair market value for their property. Additionally, the project that forces the sale of their home should be for public benefit, not the enrichment of private entities. In scenarios where property owners can prove that a project is not for public benefit or they can demonstrate that the amount offered for the property is unfairly low, they may be able to litigate in response to an attempt to condemn their holdings. They can either acquire more compensation, challenge the validity of the project or exclude their parcel of real estate from inclusion in the project.

Reviewing an eminent domain offer with a skilled legal team (and why a homeowner believes it is unfair) can help them explore their options when facing the potential loss of property that they may have intended to own indefinitely.

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