Eminent domain

Real Estate Dictionary has concluded that eminent domain is a set of words that is commonly heard in media and has caused many lawsuits throughout the history of real estate. The important question that is asked by many or runs through the minds of the person watching the news is what is it and how does it effect me?

Eminent domain is a law that states that the certain entities can take a property from an owner for the greater good of the community. An example of eminent domain is a city having constant traffic and the city needs your property to extend the road from a one lane to a two lane road.

The other question is how is conducted. This rule is conducted by paying fair market value for the property. In other words if your home in fair market value is $80,000 they only have to give you $80,000. The issue that a lot of people have with this is some people spend $40,000 fixing there house up and it could be worth $120,000, meaning the homeowner basically gets the house stolen from them.

There are a couple of entities that can enforce this policy. They include utility companies, military, government, and railroads. The federal government states that each state in the united states has the authority to decide what justifies enforcement. This means that if missouri for example decides that a farm owner would be able to provide cheaper corn to the people and provide it faster if an extension was built. Missouri could realistically decide that the farmer has power under this law. This is an unlikely scenario but very possible under eminent domain. HOME