An eminent domain action can be an opportunity to make a very profitable real estate transaction for the private property owner. The government’s obligation to reward “full compensation” to the owner of the property includes not just the fair market value of the property seized, but also the damages, remuneration of the attorney attending the case, appraiser charges, fees paid to the engineer and other professionals who may have been hired by the private property owner, cost of moving, any losses incurred by the business and such costs would be compensated.
But either due to the lack of knowledge on the part of the private property owner or any miscalculations made by them can turn this transaction into a nightmare for them.
The things that a Landowner does not know about Eminent Domain can be the cause of distress and loss for them, hence every private property owner should educate themselves about the mistakes that should not be made in case of an eminent domain transaction. Some of these are listed below:
1.Not Consulting with the Professionals
The private property owner should research, identify and hire a team of attorneys, appraisers, engineers, land planners, general contractors, surveyors, business damage experts, and other professionals to analyse every contingency and suggest the most appropriate action to be taken.
2.An Estate’s worth Isn’t Limited to Its Current Usage
When the government wants to take your property, it is responsible to provide the landowner with “just compensation”. The definition of the term “Just Competition” would mean the amount of money that would compensate the loss of the property suffered due to acquisition of the property by Government or its agents.
3. Lacking knowledge of entities that are Compensable
Eminent domain is governed by a special set of rules that define what is compensable and what is not. If the private property owner does not understand these rules or does not consult or hire the professionals then they stand to lose a significant amount of compensation and also may waive their right to them.
4. Entitlement to resettlement benefits
The constitution of the United States guarantees just compensation to the private property owner whose estate is subject to acquisition through eminent domain. Apart from the value of land, buildings, components and even the prospect of being converted to something much more lucrative. The government is also bound to reimburse the relocation costs that will be incurred by the private property owners, tenants of the estate and any lawful occupants at the time of acquisition.
5. Failing to understand Non-monetary benefits
The private property owner must educate themselves on how to evaluate the non-monetary benefits that they may be entitled to get. The Non-monetary benefits could be providing commercial property owners with new or improved access to major thoroughfares. Remedial measures, such as re-positioning the road or adding a sound wall where the estate may be subject to higher noise levels as a result of activities undertaken by the condemner.
To sum it up, proper knowledge of eminent domain will enable the private property owners to receive a complete and fair “just compensation“ from the Condemner. To know more about eminent domain, get in touch with us today!