Eminent Domain – Undeveloped Parcels
Eminent domain is intimidating. A government is trying to “take” some or all of your property for “public use.” The use of this power is legal; it’s part of the U.S. Constitution and is found under the Fifth Amendment. Developed and undeveloped parcels are at risk.
Landowners have rights under the Takings Law.
The government can acquire private property, but you have rights that must be upheld so that you’re made whole.
If you received notice notifying you of the eminent domain of your parcel, don’t wait. Our firm has 55+ years of experience giving power to our clients and protecting their rights.
Contact us today, and we’ll review your notice and discuss the next steps to take.
Landowner Rights
Indiana Code, § 32-24-1-8 and the Fifth Amendment’s Takings Law outline your rights as a landowner. One line in Takings Law is especially important for all landowners to know: “nor shall private property be taken for public use, without just compensation.”
Your land can be taken under eminent domain, but:
- “Taking” must be for public use
- You must receive “just compensation.”
You may lose your parcel, or part of it, but the government must not abuse this power. Indiana has adopted House Bill 1010 (2006), which strengthens your rights, but it’s still not immune to abuse.
If you’re feeling the pressure of eminent domain and the buying agent is trying to push you into an offer, your best option is to contact a lawyer who will consider access issues, zoning, compensation and the recovery you deserve.
What Should Landowners Do After Receiving a Notice?
Landowners should take a deep breath and realize that they do have rights, and that if your undeveloped parcel is part of eminent domain, you do have rights that apply.
You should contact a lawyer at this time because you’ll be going through a four-stage process that is intimidating.
Owners can:
- Negotiate a higher price (it’s your land, so you deserve just compensation)
- Contest the action
- Abandon the property
You may also be dealing with partial property loss instead of whole loss. Perhaps the Department of Transportation requires a small section of your property to expand the highway.
In all cases, the four stages of eminent domain will come into effect.
4 Stages of the Process of Eminent Domain
1. Project Design
Government agencies must have a reason for eminent domain, which means a project has been designed. The project will require professionals, such as engineers, who will determine how a highway expansion will occur.
The engineer may find that additional land is necessary for the project, and a portion or all of your land may be required.
2. Appraisal Process
Once the necessary property is identified, an appraiser will assess the fair market value of the property. The appraiser’s job is to provide the government with what they believe the land is worth so that they can put together an offer.
3. Property Offer
A government buying agent will contact you with a purchase offer. Property owners will feel a lot of pressure to accept the offer because the agent is often persuasive. It’s their job to get you to accept the offer.
If you have an attorney at this time, they will help you with the negotiation process and push back against the buyer’s agent.
NOTE: Short deadlines for approval mean you need to act very quickly during this stage.
4. Disputes
When the landowner does not agree to the purchase, a condemnation complaint is made to the court.
Eminent Domain Litigation
The government may have the power to take your undeveloped land, but as a property owner, you are not completely powerless. You have a right to just compensation under the Fifth Amendment.
It’s not uncommon for the government to claim that the “highest and best use of the property” is substantially lower than is the actual case. Severance damages may also be understated or not recognized.
Our lawyers may be able to negotiate a fair and just settlement.
What is Just Compensation?
Just compensation is compensation for property that’s taken under eminent domain. Typically, it is the fair market value of the property, and the intent is to place the property owner in the same position as before the eminent domain process.
- In cases of total property taking, just compensation is the value of the entire property.
- In cases of partial property taking, just compensation is the difference between the property’s value before the taking and after the taking. For example, if a property is worth $200,000 prior to the taking and $150,000 after the taking, just compensation would be $50,000.
Determining just compensation is a complicated process, and often, property owners feel that they aren’t offered fair market value for their property.
Often, government-hired appraisers do not perform thorough inspections of properties or even contact property owners. As a result, their “fair market” value offer isn’t truly “fair.”
As a landowner, you have a right to fair compensation if your property is subject to eminent domain. We can help you understand your rights and pursue a claim for just compensation.
How Cohen & Malad Can Help
If your undeveloped parcels are subject to eminent domain, don’t wait to consult with a qualified and experienced lawyer. You have a right to fair compensation and to be made whole.
At Cohen & Malad, LLP, we will work to negotiate the highest value possible to ensure you are justly compensated.
Contact us today to schedule a consultation.
