As a landowner, the decision to sell your property is an important one. Unfortunately, the choice of when, to whom, and by how much to sell your property is not always your choice. One possible reason behind this is the eminent domain law. Under this law, the city or state possesses the right to acquire private property for the sake of public use. Through this law, private lands and homes can be forcibly bought and demolished in order to build public infrastructure like a school, a new city office, or a hospital.
It is important to remember that if the government’s claim to the property is deemed justified, private property owners will have no choice but to give up their ownership. In return, they will be paid a certain “just compensation” amount by the government, usually based on the property’s fair market value. While this may sound equitable, there are many circumstances that could lead to a misunderstanding between the state and affected landowners.