Property owners whose properties are condemned by a local government or state agency have rights. Besides the commonly known right to just compensation, property owners also have a right of first refusal.
So what does this right mean, and does it apply to every property owner in Tennessee?
Here is what to know:
Repurchasing property
The right of first refusal allows property owners whose properties were condemned (condemnees) to repurchase their property if the local government or state agency (condemnor) decides to sell it.
Different factors may lead to a condemnor selling a condemned party. A condemnor may do so to recoup some costs they incurred to maintain the property, to allow the land to be redeveloped for better projects than the initially intended one and to attract new investments into the community.
It’s also not uncommon for a condemnor to put a condemned property on the market to avoid liability. For example, if the property has a safety hazard that can result in an injury. By selling, the new owner will be responsible for removing or managing the threat.
With the right of first refusal, the former property owner will generally have the priority to buy back the property before the government offers it to the public for sale in any commercially reasonable manner, for example, at an auction.
Does the right apply to every property owner?
Currently, the right of first refusal only applies to properties condemned by the Tennessee Department of Transportation (TDOT). Condemnations by other state departments are not affected by the right of first refusal and the condemnor can put a property on the market before contacting the former owner.
If your property was condemned by a local government or state agency that wants to sell it, you need to learn about rights to ensure they are upheld throughout the process.