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What is the Difference Between Eminent Domain and Inverse Condemnation?

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Joseph Franks
What is the Difference Between Eminent Domain and Inverse Condemnation?

Your real estate is your home and sanctuary; you might have been living in a house for a long time or have plans to spend the rest of your life under that roof. It can come as quite a shock when you discover that the government has other plans for property that you own. One day you wake up and receive a notice that federal or state authorities are going to take over, so you need to vacate the place immediately. Sometimes, the residents don’t even get a prior warning. A government agency initiates some public project that causes damage to property, or takes away part of it without the owner’s knowledge and consent.

If you are facing or have already encountered this type of scenario, you are entitled to protest and demand compensation.  The 5th amendment of the U.S constitution forbids the government from seizing private property for public use without just compensation. The ‘Taking’s Clause’ is a power granted to certain federal, state, and local government agencies to conduct eminent domain or condemnation, whilst fulfilling specific conditions.

On the surface, it is easy to perceive eminent domain and inverse condemnation as the same thing. Both procedures involve a government entity that possesses authority to interfere with privately owned land. Nevertheless, the two terms are not interchangeable, and understanding the difference is important for the sake of realizing and exercising your legal rights. Civil Litigation and Property Damage Attorney in Los Angeles, CA, can help you initiate your claim and obtain the compensation you deserve.

Eminent Domain

The power of eminent domain allows the government to acquire or sale private property for public use; in return, the government body is obligated to pay fair compensation to residents affected by their actions. Eminent domain is always initiated by the government and sometimes, property owners may challenge the government’s authority under statutory law. Unfortunately, this kind of retaliation seldom succeeds; an exception would be if the acquired land is being used for personal rather than public use.

Most of the time, disputes in eminent domain cases are associated with ‘just compensation’ in relation to the value of seized property. The California statute defines fair market value as the highest price on the date of valuation.  This price should be agreeable for a property owner who is willingly selling real estate, i.e. he/she is not doing so under duress or because of an emergency. On the other hand, the buying party should be willing, ready, and capable of purchasing the property. Both sides are to be aware of the purpose of the transaction and how the property will be utilized thereafter.

Inverse Condemnation

Unlike eminent domain, inverse condemnation is commenced by the property owner when the government extorts or exploits private land without following the standard procedures of eminent domain. The property owner may contest development restrictions, which typically leads to land-use disputes. The chain of events is essentially known as a ‘taking’ and the government is required to financially reimburse the property owner, as in eminent domain. This taking does not necessarily result from a forced transfer of ownership.

Inverse condemnation can be related to unwarranted damage or destruction caused by the government body’s conduct, which negatively affects real estate value, habitability, and/or usability. The damage sustained can per permanent or temporary; hence, the government is responsible to compensate the property owner either way. The taking may also be initiated if the government tends to misuse its authority. Examples of situations where you know that things have gone too far:

  • Deprivation of basic utilities
  • Compromised accessibility
  • Inhabitable conditions
  • Direct appropriation
  • Physical invasion
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Joseph Franks
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