Eminent domain allows the government to take private property for public use, such as building roads or schools. Owners should be able to receive fair compensation, but coming to a fair valuation could require litigation. Understanding how eminent domain works can help property owners protect their interests and make informed decisions.
How eminent domain affects commercial property owners
When the government claims property under eminent domain, it can disrupt businesses in many ways. The property owner might lose part or all of their land, which can force a business to relocate or shut down. Even if the government only takes a small portion of the land, it could impact access, parking, or the overall usefulness of the property.
The basis for compensation is from the property’s market value, but this value may not reflect the true impact on the business. For example, a small business might lose loyal customers if it has to move. Property owners should carefully review the details of the government’s offer and consider how the changes will affect their operations.
Why litigation may be necessary
Litigation may become necessary when property owners and the government cannot agree on compensation or the necessity of the property taken. If the owner believes the government undervalued their property or the project does not qualify as public use, they may choose to challenge the decision in court.
Litigation can delay the process but gives property owners a chance to present evidence about their property’s value and the impact of the taking on their business. These cases often revolve around proving the fair market value of the property and highlighting how the government’s plans affect its current or future use.
Grasping the full scope of eminent domain can reduce stress and help you protect your investment. If the government wants to take your property, careful planning and a clear understanding of the process can make a big difference in how you move forward.
