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Can You “Fight City Hall” Over Your Land?
Even if you possess legal ownership of property, it's not all yours forever and ever. Technically, certain government entities may be permitted to appropriate property for qualified purposes. It all has to do with the legal principle of “eminent domain.”
How it works: A federal, state or local government entity may need to use your property for legitimate public use or safety. In return, the property owner is entitled to fair and reasonable compensation based on fair-market value. Interpreting the Fifth Amendment, the United States Supreme Court has generally approved using the power of eminent domain in connection with efforts to facilitate urban renewal, destroy slums, erect low-cost housing in place of deteriorated housing and promote other aesthetic, as well as economic, values.
The taking of property may be complete, partial, temporary or restricted (as in the case of an easement). Typically, the states empower private utility and cable companies to bring eminent domain actions.
Although the exact procedures will differ for each jurisdiction, the process generally follows these three steps:
- The government seeks to negotiate a fee for purchasing the property. If the owner does not agree to sell the property, the government files an eminent domain action and serves proper notice.
- A hearing takes place in which the government must demonstrate that it tendered an offer or entered negotiations in good faith. It must also show the public need for the taking of property.
- Assuming the government's petition is approved, the court establishes proceedings to determine the property's fair-market value. The amount paid goes first to the landowner's obligations for mortgages and liens. Any balance is then paid to the owner.
Note: Either side retains the right to appeal if it is not satisfied with the results of the eminent domain proceedings.
Can you contest the issue when a government entity tries to take your property? It is possible, but we do not recommend taking on the authorities all by yourself. Contact an experienced attorney to assist you in complex property disputes.
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