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What, exactly, is eminent domain?

On Behalf of | Feb 24, 2025 | Real Estate Law |

Eminent domain is the power of the government to take private property for public use, provided that the property owner receives just compensation. This authority is granted by the Fifth Amendment of the U.S. Constitution, which states that private property cannot be taken for public use without fair payment. 

While eminent domain is often associated with government projects like roads, highways and public utilities, its application can be controversial, especially when private land is seized for projects that benefit private developers.

How does it work?

When the government or an authorized entity, such as a city, county or public utility, decides to exercise eminent domain, it must follow a legal process. The key steps typically include:

  1. Determining Public Use – The government must show that the property is needed for a public purpose. Traditional examples include roads, schools and government buildings, but courts have sometimes upheld eminent domain for economic development projects.
  2. Offering Just Compensation – Property owners must be compensated for the fair market value of their land. This value is typically determined by an appraisal, but disputes often arise over whether the amount offered is truly fair.
  3. Negotiation and Litigation – In some cases, property owners can negotiate for a higher payment. If they refuse the offer, the government may file a condemnation lawsuit to take the property through the courts.

While the government has broad powers to take private land, property owners have rights as well. A property owner may challenge eminent domain by arguing that:

  • The project does not serve a legitimate public use.
  • The government has not offered fair compensation.
  • The taking is excessive, meaning the government is seizing more land than necessary.

In some cases, courts have ruled in favor of property owners, blocking or modifying government takings. However, successfully fighting eminent domain requires strong legal arguments and evidence, which is why many landowners seek legal representation before pushing back.