Eminent Domain vs. Condemnation: What Property Owners Need to Know

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As a property owner in Alabama or Texas, you may hear the terms eminent domain and condemnation used interchangeably. However, eminent domain refers to an entity’s constitutional right to seize private property, while condemnation refers to the legal process itself.

Owning your own property is a source of pride. In today’s economic climate, owning a home is a significant accomplishment, especially for first-time homeowners. The percentage of homeowners across the country has fallen slightly between 1990 and 2020 (from 65.3 percent in 1990 to 64.7 percent in 2020). In Alabama, the percentage of home ownership in 2020 was 68.7 percent, which is above the national average. Homeownership in Texas is not far behind, with 62.2 percent of people owning their homes in 2020. Moreover, both states believe that property ownership comes with several legal protections and rights. For instance, the Texas Attorney General’s Office provides a comprehensive list of legal protections enjoyed by private property owners, known as the Landowner’s Bill of Rights. However, there are circumstances in which a qualifying government entity, such as the federal or state Department of Transportation, may exercise its eminent domain power to seize private property for projects that benefit the public in some way. When an entity wishes to exercise the constitutional power of eminent domain, it must provide the affected private property owners with “just” or “adequate” compensation in exchange for taking their land.

Unfortunately, most private property owners are not familiar with their legal rights and options in eminent domain matters. One significant point of confusion is understanding the differences between the terms eminent domain and condemnation. Although these terms involve the taking of private property in exchange for compensation in order to benefit the public, it’s important for landowners to understand the difference between eminent domain and condemnation to ensure that their best interests are protected at every step of the legal process. If you are facing an upcoming eminent domain or condemnation matter, reach out to a dedicated and experienced Alabama condemnation attorney as soon as possible to start discussing your options for resolving this issue fairly and equitably. This post will highlight the differences between eminent domain and condemnation in Texas and Alabama and why enlisting the support of a skilled and caring eminent domain lawyer is the best way to maximize your chances of obtaining a favorable outcome.

What Eminent Domain Means for Private Property Ownership

First, it’s helpful to understand the legal definition of the term “eminent domain.” According to the Huntsville Bar Association, “eminent domain is the power of the sovereign, or those on whom such power has been conferred, to take property, or interests in property, for public use and upon payment of just compensation.” In other words, an entity imbued with eminent domain power has the legal authority to take privately owned property in order to convert it or use it in a project intended for public use. The Fifth Amendment of the U.S. Constitution enshrines eminent domain power at the federal level, and state constitutions also acknowledge and grant eminent domain authority to qualifying entities. Originally, addressing eminent domain power in the federal and state constitutions aimed to prevent entities from taking private property from owners without paying fair compensation in return for taking the land. However, any entity that legitimately has the right to exercise eminent domain power may invoke such authority to use private property for projects that benefit the public interest. Private property owners in Alabama and Texas should understand that eminent domain refers to an entity’s legal right to seize private land in exchange for compensation in order to use the property in such a manner that serves the public interest.

How Condemnation Differs From Eminent Domain

Now that we understand that eminent domain refers to a qualifying entity’s legal authority to use private property for projects benefiting the public in exchange for compensation, let’s explore what the term “condemnation” means. Once an entity decides to invoke its eminent domain power, it must move through a specific legal process known as condemnation. Essentially, eminent domain refers to an approved agency’s legal right to seize private property, while condemnation refers to the legal proceedings that occur to make this transaction and event move forward and conclude. For example, if a state Department of Transportation wants to build a new on-ramp to an existing freeway in order to ease traffic congestion (which would benefit the public by easing congestion), this governmental agency would invoke its eminent domain power to initiate condemnation proceedings against the private property owners whose land is where the new on-ramp would be constructed. The Department of Transportation would notify the property owners of its intention to take the land for the purpose of building a new highway on-ramp and offer them compensation in exchange for their property. In other words, eminent domain refers to the constitutional power itself, while condemnation refers to the legal process of taking private property in exchange for just compensation.

Know Your Rights During the Condemnation Process

When an entity wishes to exercise its eminent domain power, it must inform the affected property owners through a condemnation letter. This written notice tells the owner of the upcoming and constitutionally justified taking of the property and provides an offer of compensation that should be considered “just” or “adequate.” Unfortunately, condemnation letters are often worded in such a way that confuses or intimidates property owners, leading them to assume that they have no choice but to go along with the process and accept the initial offer. However, it’s essential to understand that property owners have legal rights and protections in the face of condemnation actions. For instance, you have the right to work with a highly qualified and knowledgeable condemnation lawyer who will help you understand your legal rights and advocate for your best interests at every stage of the condemnation proceedings. Your skilled and caring condemnation attorney can also help you negotiate a more just and favorable amount of compensation that considers a wide array of factors, such as the current and potential value of the land being taken as well any damages that will be imposed upon the land not taken (the “remainder”). Learn more about your rights as a Texas or Alabama landowner by calling a dedicated and trusted eminent domain attorney today. Together, you can explore the eminent domain and condemnation differences and identify the most strategic path forward to help you obtain a better outcome.

If you are a property owner who has just learned of an upcoming eminent domain or condemnation project that may involve your land, it’s essential that you contact a skilled and experienced eminent domain attorney as soon as possible to ensure that your best interests remain protected at every turn. Call Sewell Sewell Beard LLC today at (205) 544-2350 to speak with one of our Jasper, Alabama condemnation lawyers, or call our Prosper, Texas office at (972) 777-5390 to discuss your options with one of our knowledgeable eminent domain attorneys. We’ve been doing this for 39 years.