When you own a property, you reserve the right to use it as you fit as long as you are operating within the law. This is what most people believe, and they are mostly right – that is until the government decides that they need part of or your entire property.
Basically, the law allows the government (state or federal) to claim private property for government or public use. However, the property owner must be fairly compensated in return. This power is known as eminent domain.
Understanding eminent domain basics
The U.S. Constitution grants government agencies like the Department of Housing and Urban Development (HUD) the power to claim and convert private property to public use. In return, the government agency in question must compensate the property owner at a fair market rate. So how do you negotiate a fair settlement when giving up your property to the government?
Take things seriously from the onset
The government agency in question must provide adequate notice that it intends to claim your property through eminent domain. Upon receiving the notice, you need to get down to the following:
- Carefully read the appraisal to understand how they reached a settlement offer. This will help you determine whether the offer is fair or not
- Obtain your own appraisal. This will help you strengthen your negotiating power
- Understand why you are being compensated. Most often, you will be compensated for the value of your property. However, you should also find out if you will be compensated for the foreseeable damages to the property you are left with. And this is where understanding the construction plans come in.
Remember, the more information you have about the government’s offer and the project in question, the more likely you negotiate a better settlement.
Protecting your interests
When the government has an interest in some or all of your property, you may feel like there is nothing you can do about it. This is not true. Acquainting yourself with California eminent domain laws can help you negotiate and get the most out of the situation.