Everyone knows the real estate term “Location, location, location.” Commercial property owners understand that the location of their land is crucial for a successful business venture.
Therefore, it can be upsetting for them to hear that the government is going to take their land for a “fair” price. Property owners want to know: Can you fight city hall?
The purpose of eminent domain
Eminent domain is the right of the federal government to take private land for public use in exchange for providing the property owner with “just compensation.” Not only is this outlined in the Fifth Amendment of the United States Constitution, but it’s also a part of California law.
Eminent domain applies to all privately held property, even commercial property. This governmental right is meant to be used for projects that benefit the public, such as schools, transportation, public utilities and environmental conservation.
While the overall purpose of eminent domain is for the greater good, it can significantly impact a business. The owner may need to relocate or cease operations.
California requires several steps before the government can acquire your property.
- The government must prove that the acquisition of your property is necessary for their project.
- The government must offer to compensate you for the fair market value of your property. Factors such as market trends and the property’s potential income generation must be considered when determining just compensation.
- If you disagree with the project’s necessity or compensation, you can challenge the government in court during condemnation proceedings.
- A judge will evaluate the necessity of the project and the compensation’s fairness in light of your arguments. If they find in favor of the government, the property is transferred, and you are awarded compensation.
If the government is trying to compensate you for taking your property, you have the right to fight city hall. When you go to court, you will want someone who understands eminent domain on both the state and federal levels. They will fight with you and offer your best chance of a positive outcome.