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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. While a condemned house may evoke the idea of a creepy abandoned home in a horror film, the term actually does not imply a home that’s unsafe to live in. Even homes in perfect condition can be condemned. Condemnation occurs when a public authority, such as the local government, seizes a piece of private property for public use. However, they must pay the owner a fair market price for the property. What is condemnation in real estate terms
Public authorities are able to condemn a home or parcel of land through , which gives them the right to seize property in the name of public interest. But they may not simply take it as they please — the owner must be compensated in accordance with the property’s . The Fifth Amendment to the U.S. Constitution specifies that private property “shall not be taken for public use, without just compensation.” The government can take land for both private and public projects that are deemed beneficial for the public as a whole. The property owner does not have to consent to the seizure. Some of the reasons the government might take land are to: Construct a new school Improve or expand the road system Install or maintain infrastructure for utilities Build a hospital in an underserved area When the public authority exercises condemnation, the owner receives an offer for the property’s fair market value. If the owner feels the offer is too low, he or she can dispute the appraisal in court and try to secure more money. Condemnation example
Condemnation frequently occurs when the government needs land for publicly beneficial projects, often for building a new road whose path is obstructed by private property. For example, if your town has grown over the years and its roads are no longer capable of safely accommodating the volume of traffic, the government may decide to expand the existing roads. However, to complete the expansion, it has to acquire several nearby properties, including your home. You may not want to give up your home, but since the expansion will make the road safer for all of your town’s residents, the town exercises eminent domain, and you have no choice but to sell your property to the government. This is condemnation. The first offer the government makes you for your property is known as a “pro tanto award.” If you feel that the pro-tanto offer is unjust — for example, that it does not take into account the characteristics of your home that increase your property’s value — you may hire a lawyer to try to negotiate a higher price. Condemnation can sometimes happen on a very large scale. During World War II, over 20 million acres of land were seized by eminent domain to use for wartime defense installations, including airports, naval stations and proving grounds. Bottom line
Condemnation is a legal term that means private property has been seized by the government for public use. The government is required to pay a fair market value in exchange. This typically happens for the building of things that will benefit the entire community, like new roads. SHARE: Rae Hartley Beck is a writer and editor with over eight years of experience in personal finance. Her work has most recently appeared in Bankrate, MoneyWise and Investopedia. Rae specializes in credit card rewards, investing, real estate, home improvement, lending and financial advice for millennials, Gen Z, Gen Alpha and their parents. Related Articles