Owning land is a source of pride and accomplishment. As the owner, you enjoy many legal rights and protections allowing you to use your property as you see fit. For example, you may decide to build your dream home on a piece of land you just acquired, or you may opt to demolish an existing structure to create a “tiny home” or short-term rental home on your land. As long as your vision aligns with all applicable zoning laws and any applicable covenants in your area, you can take steps to make your dreams a reality. However, there are certain instances where a governmental entity may enforce its eminent domain power to seize your property for a project that will benefit the public in some way. State and federal constitutions endow qualifying governmental entities with eminent domain authority, which allows them to take privately-owned property to use in projects for public use. In exchange, the entity must provide the affected landowner with “just compensation.” When an entity invokes its eminent domain power, the legal process called condemnation begins. If you are a property owner in Alabama or Texas and an entity has sent you a condemnation notice of an upcoming eminent domain-related action, contact an experienced, knowledgeable and caring condemnation lawyer as soon as possible to discuss your options. While you may not be able to stop the seizing of your land, your attorney can help you maximize your award to ensure that you walk away with the compensation you need to start your life’s next chapter. It takes time to put your case together. So, it is important to retain an experienced condemnation attorney right away.
Common Types of Eminent Domain and Condemnation Actions
First, it’s helpful for property owners to understand how eminent domain and condemnation cases work. Only approved entities may exercise eminent domain authority, such as departments of transportation, water districts, educational districts, states, counties, and municipalities. Additionally, the Alabama legislature has “conferred the right of eminent domain on corporations formed for the purpose of constructing, operating, or maintaining railroads, street railroads, gas or electric works, water companies, power companies, canals, terminals, bridges, viaducts, wharves, tiers, telegraph or telephone lines, pipelines, or any other work of internal improvement or public utility.” Essentially, an entity wishing to add a new public park, construct a new school, widen a road, build a new road or renovate a library may invoke eminent domain power, as these projects will meet the legal requirement for public use.
Navigating the Condemnation Process
As a landowner, the condemnation process can seem overwhelming and confusing. Unfortunately, many property owners are unaware of their legal rights during this process, making them more vulnerable to accepting lowball offers. Let’s take a look at the steps that are typically involved in the condemnation process. Remember, it’s always a good idea to enlist the guidance of an experienced condemnation attorney to help you obtain the best possible outcome.
Having the Property Appraised
When an entity wishes to exercise eminent domain power, it must first have an appraiser visit the property to determine the amount of compensation to provide the landowner that would be considered a “fair and just” offer. This means that an appraiser may show up at your property to request access in order to assess the value of your land. It’s important to recognize that you and your attorney have the right to accompany the appraiser during their inspection.
Making You an Offer in Writing
Next, the condemnor must provide you with an amount of “just” compensation. This offer must be in writing, and it must be accompanied by a written summary demonstrating the basis for the amount of compensation they are offering. Unfortunately, these letters are often worded in such a way that implies the landowner has no choice but to accept the offer. The reality is quite the opposite—as the landowner, you have the right to involve your own independent appraiser to push for a more equitable compensation offer. You have the right to be heard in a court of law and to have a jury enter the condemnation award. You must start preparing your case for trial as soon as possible. It is a mistake to wait until you receive an offer to contact an experienced condemnation attorney. You should already have that lawyer long before you receive the offer so you will know if the offer is or is not accurate and legitimate. That is how you prepare, it is how you negotiate with the condemning entity and if necessary refuse the offer and make them take you to court. That’s not where they want to go.
Maximizing Your Property’s Worth
While we like to trust that the condemning entity will strive to provide a just amount of compensation, we must recognize that it’s in their best interest to protect their bottom line. The term “just compensation” can be frustratingly vague, and a condemning authority may take advantage of this broad term to justify a lower offer. Here are a few criteria you can use to calculate a more comprehensive and accurate valuation for your property as you prepare to negotiate a more favorable settlement offer.
Fair Market Value
Fair market value refers to the price your property would bring if offered for sale by a willing seller (who is not compelled to sell) and sought by a willing buyer (who is not under immediate pressure to buy). Your attorney may suggest enlisting an independent realtor or real estate professional to help you determine the fair market value of your property. Your property must be appraised at its highest and best use, not necessarily its current use. That is a requirement of law that is often not followed by a condemning entity.
Before and After Value
In some eminent domain cases, only a portion of the owner’s property is taken. That is a partial taking. In such instances, the owner is entitled to the monetary difference between the fair market value of the complete property before the taking and the fair market value of the remaining property. The owner is also entitled to be paid for any damage the project will cause to the remaining land (the “remainder”) that is not being acquired. That is also a requirement of law that is often not followed by a condemning entity. Damages to the remainder often include diminished or denied road access, drainage problems, etc. Your attorney will help you locate an experienced condemnation appraiser who knows how to quantify damages to the remainder.
Highest and Best Use
Landowners in Texas and Alabama have the right to receive compensation for the land being taken based on the highest and best use of their property, even if the land is not currently being used in such a way. For example, if your property is a parcel of vacant land, it will be worth much more once it is developed into a bustling commercial shopping center. Therefore, the condemning entity must compensate you in a way that reflects the potential profitability of your land, not just its current value.
Get Started With a Trusted Condemnation Lawyer Today
As soon as you learn of an upcoming construction project that could impact your community or property, get in touch with an experienced, knowledgeable and caring condemnation attorney to discuss your options. It’s best to take proactive steps to ensure that you secure a fair and favorable offer in exchange for giving up your land. Your attorney will answer your questions, address your concerns, and support you through every step of the condemnation process. An experienced condemnation attorney will know how to assemble a team of experts to put your case together to maximize your award. If you are prepared, the receipt of the offer is the beginning of the negotiation, not the end.
If you need help with a condemnation matter, the dedicated legal team at Sewell Sewell Beard LLC is here to help you. We’ve been doing this type of legal work for 39 years. Call our Alabama office at (205) 544-2350 or our Prosper, Texas office at (972) 777-5390 today to discuss your case with an experienced and caring condemnation attorney.
