What is Property Condemnation? Everything You Need to Know About This Government Power

It’s not a scam: it’s called property condemnation. The government uses property condemnation to seize private property via eminent domain. It happens every day across the United States, and it’s more common than many homeowners realize.

Today, we’re explaining what property condemnation is, how the eminent domain process works, and what you might want to know about fighting back against this government power.

What is Property Condemnation?

Property condemnation is the legal process through which the government (and even certain private companies) acquire private property for public use.

Condemnation and eminent domain go hand-in-hand: eminent domain is the legal right of an entity to seize private property, while condemnation is the specific process through which that legal right is applied.

How Does Property Condemnation Work?

To acquire land via eminent domain, the government initiates the condemnation process.

The process varies based on local, state, and federal laws and the specific case. Typically, however, property condemnation requires two broad items:

• Requirement #1: The property is being acquired for a public use – say, to build a road or school.
• Requirement #2: The owner will receive fair compensation for the property.

As a property owner, your side of the condemnation process looks like this:

Step 1) You Receive a Condemnation Notice: The condemnation notice alerts the owner of the private property that the land is being converted from private land to public land for public use.

Step 2) Appraisal & Monetary Offer: The organization sends appraisers to the property to calculate fair value. Then, the organization makes a monetary offer. That monetary offer can include the assessed value of the land along with the relocation costs and certain other expenses.

Step 3) Challenging or Accepting the Condemnation: Many property owners challenge the condemnation or push for higher compensation. Some even take their case to a jury – which is your right under the 5th Amendment of the US Constitution. If the organization can genuinely prove that your land is being used for the public and has offered you fair compensation, however, then the organization may legitimately acquire your land via eminent domain.

Who Has the Power to Condemn a Property?

Generally, government organizations are the ones completing property condemnation and seizing property via eminent domain. However, both public and private companies, surprisingly, have the power to condemn a property.

• Federal, state, and local governments all have the right to claim eminent domain over private property.
• Private companies (like utility companies or telecommunication providers) can claim eminent domain if they can prove land is being seized for public use.
• Certain non-governmental but public organizations (like school committees) can claim eminent domain.

When an organization begins the condemnation process, that organization is called the condemnor.

Property Condemnation vs. Condemned Properties

It’s important to recognize the difference between property condemnation and condemning a property.

Yes, they’re the same word, but they mean different things in different contexts.

• Property condemnation, in the context of eminent domain, is the system the government uses to seize your property. A government organization must complete the condemnation process before acquiring a property via eminent domain.
• Property condemnation, in the context of safety issues, refers to the closure of a private property because of a perceived health risk. Condemned properties are private properties that have been shut down for public safety or public health reasons – typically by a municipal or local authority. This process is unrelated to eminent domain.

Key Things You Need to Know

Property condemnation can be a scary and uncomfortable process. Fortunately, you’re not alone – and you have the right to challenge the condemnation process.

Important things to know about property condemnation and eminent domain include:

You still own the property until the condemnation process is complete. Governments can’t just show up and take your home. They must complete the condemnation process, proving (in front of a jury, if necessary) that they need your land for public use and have made a fair offer.

The first offer isn’t always the best offer. Organizations are required to offer fair market value for your property. In many cases, however, their first offer doesn’t accurately reflect this value. Organizations might also hire their own appraisers or evaluation experts. You have the right to hire your own appraiser or challenge the “fair value” of your property in court.

Partial condemnation or easements are common. In some cases, the government only needs part of your land – say, a part of your front yard that will be turned into a roadway or an easement to build a power line over your land.

The government can legally acquire your property if following the condemnation process correctly. If a government legitimately needs your land for public use, is offering fair value, and follows the condemnation process correctly, then there may be little you can do to challenge the acquisition. At a certain point, the government will legally acquire your property, and you may be forced to move.

Private companies can also become condemners. In a 2005 decision (Kelo vs. City of New London, 545 US 469), the Supreme Court found both private and public organizations could acquire land via eminent domain – as long as they’re acquiring the land for public use. The decision expanded the definition of public use to include both direct and indirect public use. In other words, it might not be a state or federal government using the condemnation process to acquire your property – it could be a private organization like a utility firm or pipeline company.

Top 10 Most Common Reasons for Property Condemnation

Local, state, and federal authorities regularly seize private property via eminent domain using the condemnation process.

Here are the most common reasons for the application of eminent domain today:

1. Road and highway expansions
2. Utilities (like pipelines, power lines, and water systems)
3. Rail, transit, and infrastructure development
4. Flood control and drainage projects
5. Redevelopment or urban renewal projects
6. Park and green space creation
7. Public school or hospital construction
8. Environmental and conservation projects
9. Public housing developments
10. Military and federal installations

You Can Challenge the Condemnation Process

Condemnation may seem like an unbeatable force. But homeowners can and do challenge eminent domain every day – and many of them increase compensation or even overturn eminent domain cases entirely.

Under the 5th Amendment of the United States Constitution, you have the right to a fair trial for your eminent domain case.

If a jury disagrees that the eminent domain process is for public use or providing fair compensation, for example, then you could avoid property seizure.

Some of the ways to challenge property condemnation include:

Negotiate for Higher Compensation: As mentioned above, the first offer may not be the best offer. Some organizations hire their own appraisers who may lowball property owners. Some might offer a low payout because they assume you’ll push back.

Understand Emotional Value Isn’t Included: The condemnation process doesn’t consider the emotional or sentimental value of your land. If your family has owned the land for 10 generations, for example, then that land may be worth more to you than any amount of money – but this sentimental value isn’t considered as part of “fair compensation.”

Fight for Relocation Costs & Lost Income: You can, however, fight for relocation costs and lost income. In many cases, eminent domain covers the cost of relocating you to a new location, the loss of business income related to a commercial property, or damages to the remaining property (say, in a partial seizure).

Consider an Easement or Partial Seizure: Sometimes, the government doesn’t need your entire property. They might need to build power lines above it or utility lines underneath it, for example. Or, they might need to take the first 10 feet of your front yard to build a new sidewalk. Sometimes, the property condemnation process ends in an easement or partial seizure – but the organization must still compensate you.

If all of these steps seem intimidating, that’s okay: most homeowners aren’t property condemnation experts. That’s why many hire attorneys who do specialize in property condemnation.

What to Know About Property Condemnation & Eminent Domain

Property condemnation and eminent domain seem intimidating, but ordinary property owners can and do push back.

Key takeaways:

• You have the right to question the process, dispute the amount offered, and negotiate
• The 5th Amendment guarantees your right to a trial
• The condemnor, or the organization completing the condemnation process, must prove that your land is needed for public use and prove they’re offering fair compensation
• The first offer may not be the best offer

Consider hiring an attorney to represent your best interests in a property condemnation and eminent domain case.

By educating yourself on your rights as a property owner, you give yourself the best possible chance of handling a property seizure via the condemnation process and eminent domain.

Stephanie Corona

Stephanie is a property insurance claim expert with over 20 years of experience working as an insurance adjuster, expert witness, appraiser and umpire. She is passionate about sharing her expertise, knowledge, tips and training to help both property owners and Public Adjusters in their pursuit of effectively managing claims and recovering the claim settlement they deserve after a loss.