Eminent Domain
Eminent domain is the government's constitutional power to take private property for public use, provided the owner receives just compensation as required by the Fifth Amendment.
Exam Tip
Eminent domain = government's power to take property. Must pay JUST COMPENSATION (fair market value). Fifth Amendment protection.
What is Eminent Domain?
Eminent domain is the inherent power of the government (federal, state, or local) to take private property for public use. The Fifth Amendment requires that the owner receive "just compensation" for the taking.
Constitutional Basis
The Fifth Amendment states: "...nor shall private property be taken for public use, without just compensation."
Key Requirements
| Requirement | Description |
|---|---|
| Public Use | Property must serve a public purpose |
| Just Compensation | Owner must receive fair market value |
| Due Process | Owner has right to notice and hearing |
The Condemnation Process
- Government identifies need for property
- Appraisal determines fair market value
- Offer made to property owner
- Negotiation (owner can accept or reject)
- Condemnation suit filed if no agreement
- Court determines compensation
- Title transfers upon payment
Types of Takings
| Type | Description |
|---|---|
| Total Taking | Government acquires entire property |
| Partial Taking | Only portion of property taken |
| Inverse Condemnation | Government action reduces value without formal taking |
What Qualifies as "Public Use"
- Roads and highways
- Schools and public buildings
- Parks and recreation areas
- Utilities and infrastructure
- Urban redevelopment (controversial)
Owner's Rights
- Right to be heard in court
- Right to challenge the taking
- Right to fair compensation
- Right to challenge valuation
- Right to attorney (but not always paid by government)
Just Compensation
Compensation is based on fair market value at the time of taking, including:
- Land value
- Building value
- Business losses (varies by state)
- Relocation costs (under federal Uniform Act)
Study This Term In
Related Terms
Appraisal
Real EstateAn appraisal is a professional assessment of a property's market value, typically required by lenders before approving a mortgage to ensure the loan amount is appropriate.
Title
Real EstateTitle is the legal right to own, use, and dispose of real property, representing the bundle of rights that come with property ownership.