State agencies and businesses managing public projects may invoke eminent domain. The authority given under this law allows for the forced sale of real property, possibly through condemnation proceedings, during projects intended for public benefit.
When people who own acreage or farmland face eminent domain claims against their real property, they may have the option of subdividing their parcels. They can retain the land not required for the project and only sell the property that the condemning authority actually needs to complete the project.
In those situations, the just compensation for the forced sale of the property may include not just the value of the acquired parcel but also severance damages.
What are severance damages?
The need to divide a parcel can affect the fair market value of both parcels. Severance damages specifically address the reduction in value caused by dividing a parcel.
The loss of road frontage, reduced water access and other changes to the property triggered by the division of the parcel can reduce the likely resale value of the property. Owners pursuing just compensation for the acreage they must sell due to an eminent domain claim may need assistance determining what the parcel they sell is worth and how the division of their property affects the fair market value of the land that they retain.
Requesting severance damages in a forced sale triggered by eminent domain proceedings can help property owners limit the economic hardship caused by major public projects. Property owners concerned about severance damages and just compensation may need to work with a lawyer familiar with complicated eminent domain cases to negotiate appropriate compensation for the sale of their property.