Condemnation Real Estate

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“A Condemnation Real Estate/house may sound like an abandoned house in a horror movie, but it doesn’t have to be. Even perfect homes are susceptible to condemnation.”

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Condemnation Real Estate

The Condemnation Real Estate occurs when a public authority, like a local government, deprives the owner of it. The owner must be compensated fairly for the property, though.

 

The Process and Procedures of Condemnation in Real Estate

The government entity is responsible for initiating condemnation proceedings when a property is subject to condemnation, even if its owner refuses to sell it. The government must demonstrate that the acquisition is for a legitimate general purpose. This purpose could be constructing roads, schools, parks, or other community development projects.

You will likely suffer from one or more of the above situations if your property has been condemned or claimed by one of the above agencies.

 

Notice of condemnation

During the condemnation process, the first step is issuing a condemnation notice. This notice will inform the land owner that converting the property’s status from private to public has begun.

Contact an eminent domain lawyer or attorney immediately if you receive a condemnation notice.

 

Make a monetary offer.

It is common for agencies seeking to take eminent domain to have already determined the property value. They will then use that value to make a monetary offer to the property owner.

The offer can be rejected and negotiated by both sides. The property owner can contest the condemnation in court. Both sides provide evidence to support their positions, including appraisals and expert testimony.

When negotiations fail, the agency will file a condemnation lawsuit in court. They will state the reason for taking the property and the amount they offer. The court determines fair and just compensation for the property owner’s loss based on the evidence presented during the proceedings.

A real estate lawyer can often help you reject an unfair offer if you feel it is unreasonable.

 

Contesting the Condemnation

Fighting a condemnation can be challenging. However, a real estate attorney can help you get a fair settlement.

Unfortunately, condemned properties rarely return to their owners as a result of the legal process. This is because “public use” in the legal process is so broad that it is difficult to challenge.

However, owners and their attorneys may contest the original appraisal of the property.

 

Defining Condemnation

This is a procedure used by both public and private entities to acquire property legally. Condemning a property is the term used to describe its destruction. The objective of the process is to meet a need, such as a safety or health concern or another (public) objective.

Sometimes, we may temporarily address and improve the conditions. However, it may also be permanent, leading to the loss of property ownership. A government will take ownership of a property or transfer it to a third party, then demolish and rebuild it.

If local authorities determine that structures threaten surrounding structures or are unsafe for residents, they can order their demolition. In addition, abandoned, dilapidated, or poorly maintained buildings are subject to fines if they are an eyesore to the neighborhood. It is impossible to occupy these buildings, whether vacant or occupied.

You will have two options if you receive a condemnation order due to health and safety concerns. You must rectify the situation if you receive an order due to health and safety concerns. It can face legal action by others who do not agree (with eminent domain claims or health and safety orders).

 

Condemnation Types

A government usually condemns a property when its condition makes it unsafe for use or occupancy. A government may also condemn a property when it intends to use the property for a legitimate public purpose through a process known as eminent domain.

 

Condemnation Types

 

Unsafe or dilapidated buildings

Dangerous or decaying buildings are often condemned to prevent harm to occupants or neighboring structures. State, federal, and local regulations may apply depending on the building’s condition. If those codes or standards fail, a condemnation may occur.

If renovations occur or the damage is repaired, the order may lapse during a fire, earthquake, or chemical spill. This can occur as a result of deterioration over time or as a result of a specific event that damages the property. Renovations may lead to condemnation in some cases if they reveal unsafe conditions or violations that existed when the original building stood.

To avoid problems and costs, property owners need to recognize condemnation orders. Those who disagree with the orders may consult a lawyer to determine their options. A property owner can rectify the situation by making the needed repairs. This will have the orders removed. In extreme cases, they may need to demolish the property.

 

The domain of the eminent

The federal and state governments can use eminent domain. They can condemn and transfer private property to private ownership or third parties. An order of Condemnation Real Estate must provide just compensation and notice of seizure and serve a general purpose.

Before seizing property, authorities must appraise it. Then, they must pay a pro tanto award. The owner can accept the prize without losing their right to sue. The condemning authority must provide timely notice throughout the process. It must also give the owner a copy of the appraisal.

As a result, payments tend to be small compared to the amount awarded by the courts to owners of condemned properties.

Owners may file a lawsuit. They believe the amount offered needs to increase to reflect the property’s value. The property owner may challenge the validity of the seizure and request the right to retain the property for as long as they prove that the seizure did not serve the public interest.

A special commissioner generally hears these matters. The property owner can challenge the commissioner’s decision if they disagree. However, the condemnor may issue payment based on the commissioner’s decision. The condemnor can access the property as the court hears the appeal.

 

An example of condemnation

In many cases, condemnations occur when the government requires land for public benefit projects. For example, the government might need to build a road, but private property is in the way.

Over time, if the traffic is too high, governments may decide to expand roads in your town. This is to ensure the streets can safely handle the traffic. The expansion, however, will require acquiring several nearby properties, including yours. In this case, you must sell your property since the expansion will make the road safer for those living in your town. Eminent domain applies, forcing you to give up your home.

Initially, the government offers you a pro-Tanto award for your property. The pro-tanto offer may be unjust to you. You need to consider the factors that increase the value of your property. Consider hiring a lawyer to try to negotiate a higher price.

The condemnation of large amounts of land can sometimes occur through eminent domain. During World War II, the government took over 20 million acres of land by eminent domain. They built radar and naval stations and used the land for defense.

 

Property Condemnation: Who Has the Power?

In North Carolina, several public and private entities can condemn property. These are the entities and agencies that can charge a property:

  • Governments can take personal property through eminent domain, regardless of size or location.
  • Some school committees, as can utility, communications, and other private companies, can also claim eminent domain.

 

Eminent domain versus condemnation

Condemnation Real Estate and eminent domain are closely related. However, it is essential to note that they are not the same. Eminent domain refers to a government’s right to take the land or property of private citizens. In Condemnation Real Estate, the government takes over the landowner and eminent domain occurs.

No condemnation can take place without eminent domain, and vice versa.

 

The Eminent Domain and Condemnation Process

Condemning authorities must follow a rigorous process when they invoke eminent domain. Appraising the property is the first step in determining its fair market value. The owner then receives a pro-Tanto award, which they can accept without giving up their right to sue the government. Both parties can also agree on a fair settlement.

However, the payments made to both property owners are typically small compared to what they usually receive if the matter goes to court.

Following the notification, the condemning authority should send the owner a copy of the appraisal to notify them that they are commencing the condemnation process. As noted, the owner can challenge the offer in court and appeal it further.

It is also possible for the property owner to contest the necessity of condemnation by filing a lawsuit against it. If condemnation proceeds, the court must find that the government’s reasoning for invoking eminent domain is valid or deem condemnation necessary. Condemnation requires the property owner to accept an amount set by the court or a special commissioner.

 

Inverse Condemnation: What Is It?

Government agencies sometimes take action that negatively impacts a property. However, they still need to exercise their eminent domain authority.

In Thornton’s view, “They’ve committed acts that rise to the level of taking the property.” For example, a government project might result in flooding or cut off access to a property. Often, property owners can seek compensation for inverse condemnation in these cases.

It is tough to prove inverse condemnation. Often, the agency involved will take some steps to minimize the adverse effects but only cover part of the property’s value. If a project like a railway tracks your house, they can reduce the damage by providing soundproof windows.

 

FAQs about Condemnation Real Estate

Generally, landowners facing condemnation have many questions, especially if an authority is claiming eminent domain. Find answers to some of the most common Condemnation Real Estate questions below.

 

Does anyone have the right to condemn my property?

Federal, state, and local governments, as well as government agencies like the FBI, CIA, NSA, and police, can condemn private property.

Besides the government, private entities may invoke eminent domain, such as public utilities and common carriers.

 

Does my property qualify for any compensation if someone condemns it?

There may be a possibility for you to recover your property’s fair market value if it goes missing permanently or temporarily. If the authority accepts only part of your property, you can recover the reduction in market value for the remaining property.

 

Can I stop a condemnation before it occurs?

The condemning authority should provide you with a value comparable to your property. This should happen regardless of the circumstances of the seizure. You should consult an attorney and obtain an independent real estate appraisal.

If you end up in court, you will personally see that no one is taking advantage of you or lying to you.

 

Is it necessary for me to accept the offer of the condemning authority?

In most cases, government seizures involving eminent domain end in the government’s favor. However, you can always take the condemning authority to court. If you want your property to receive the maximum compensation possible, it is still advantageous to go to court.

 

How will they determine my compensation if I decline the offer?

The court will determine the compensation you will receive based on condemnation law and the procedure that applies in the court suit that follows. So, the court will examine the case, review multiple appraisal reports, and determine the compensation amount based on their findings.

 

What is the appraisal process for my property?

Several methods exist to appraise your property, including comparable sales, cost, and income. It is possible to evaluate your property based on its fair market value, its improvements or features, and the revenue it generates.

 

What Makes Some Appraisal Estimates Different From Others?

The appraisal process includes evaluating non-subjective elements, yet the estimated market value that an appraiser presents to a court is ultimately subjective. Factual assumptions, personal bias, and the selection of market data can all affect the final determination of value.

 

Bottom Line

The bottom line is that landowners need to prepare for condemnation because it is not something they can control. However, scammers do not necessarily target them just because they are condemned. You could receive fair market value on your home when the government declares it uninhabitable and requests an appraisal. This ensures you get just compensation.

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