What Is Condemnation in Real Estate?

In real estate, condemnation can be one of the most complex and confusing situations that you could ever find yourself in. As with any issue regarding property rights and ownership, there are many factors that can contribute to the cause of condemnation, as well as different ways to go about the process itself.

In this article, we will attempt to answer what condemnation in real estate is and why you should care about it, as well as offer some tips on how to handle it if it ever comes up in your life.

What is Condemnation?

Condemnation is the acquisition of private property by a public entity through eminent domain. Condemnation is the legal process by which the government takes private property for public use.

The government needs to follow a series of steps before they can take any land. First, they have to give written notice of their intent to take the land, then they have to pay the owner fair market value for the land, and finally they need to provide some type of replacement property or money that's equivalent in value.

Types of Condemnation in Real Estate?

In general, there are various types of condemnation in real estate. Knowing what type of condemnation might affect your property will enable you to take any necessary precautions and make changes as necessary in order to protect your investment.

Dilapidated & Unsafe Buildings

Dilapidated and unsafe buildings are often condemned by the city. A building is considered to be dilapidated if it has a significant number of defects that makes it difficult to use for its intended purpose.

An unsafe building may have structural, fire or hazardous materials concerns that pose an immediate threat to life and health. Building owners are issued a notice of condemnation if the building is found to be either dilapidated or unsafe.

Eminent Domain

It is a governmental power to appropriate private property for public use, with just compensation. The government determines the level of necessity and sets the terms for the conversion. When this process is initiated, it is called condemnation.

Eminent domains can be used to build roads, schools, military installations or other public works that provide some form of public service. It also can be used as part of urban redevelopment projects such as building highways through cities to provide easier access between suburbs and commercial areas.

How to Avoid Real Estate Condemnation?

There are a few ways to avoid condemnation in real estate, but the best way is to prevent it by protecting your property. One way is through the purchase of an insurance policy that covers eminent domain.

Another way is by making sure you have the proper zoning or permits for your land. The last and most important thing you can do is make sure there are no encroachments onto your property, such as driveways, fences, or buildings.

Conclusion

Simply put, condemnation is the process by which a municipality legally takes private property to use for public need. This process can be initiated by either the government or through eminent domain . There are several different types of condemnation, and legal processes, but what they all have in common is that owners are compensated for their loss. Expert Legal service by Paul Biagini Attorney