Condemnation
Definition and meaning of Condemnation in real estate.
Condemnation is the legal process by which a government agency or authorized private entity takes private property for public use, exercises the power of eminent domain, and provides just compensation to the owner.
In more detail
When condemnation occurs under eminent domain, the property owner cannot refuse to sell, but they have the right to negotiate or contest the amount of compensation offered. The taking must be for a public purpose, such as building a highway, utility line, school, or public park.
The compensation is typically based on the property's fair market value at the time of the condemnation. In the separate context of building safety, a local municipality can condemn a structure if it violates building codes, lacks utility service, or is structurally unsound. In either case, condemnation has major financial and legal implications for property owners, buyers, and lenders.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Legal basis | The power of eminent domain under the U.S. Constitution |
| Owner right | Entitled to just compensation based on fair market value |
| Alternate meaning | Declaration that a structure is unsafe and illegal to occupy |
The state government initiates a condemnation proceeding to acquire a strip of land from a retail parking lot to widen an adjacent highway, offering the owner compensation for the lost land.
Frequently asked questions
Can a property owner stop a condemnation proceeding?
It is very difficult to stop a condemnation, but owners can challenge whether the taking serves a public purpose or argue for a higher payout in court.
What is inverse condemnation?
Inverse condemnation occurs when a government action damages or reduces the value of private property without initiating formal condemnation proceedings, allowing the owner to sue for compensation.
Related terms
Sources & references
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