Definition of Condemnation and Fair Market Value

Private property may be acquired to construct public improvements.

Public agencies may need to acquire private property to construct a public improvement such as a new city services building, school or a public street. If the agency and the private property owner cannot agree on a price for the land that is required, the public agency may use its power of eminent domain to condemn the land.

Eminent Domain and Condemnation

Eminent domain is the power of government to acquire private property for a public use, even if the seller is unwilling. Condemnation is the legal process for an agency to gain possession of the property and to establish the value of the property to be acquired.

Fair Market Value

The owner of the land is entitled to fair market value. In a valuation proceeding, each party engages land appraisers to determine the highest price the land could be acquired for from a willing seller.

Additional Compensation

In the addition to the value of the property that is acquired, a landowner also may be entitled to other compensation. Depending on the agency's rules and funding source, compensation to defray costs such as moving expenses could be awarded in a condemnation proceeding.

References

• Marion County, Oregon: Acquiring Land for Roads
• Missouri Department of Transportation: Right Of Way Condemnation
• Federal Highway Administration: Acquiring Real Property for Federal and Federal-aid Programs and Projects

Resources

• Waldo & Lyle P.C.: A Property Owner's Guide to the