Intermediate1.5 hours15 terms

Eminent Domain & Expropriation Terminology

This collection offers key terms that might be helpful when exploring the complex area of expropriation and eminent domain in real estate investment. It's a carefully selected reference to clarify commonly encountered concepts, not a comprehensive legal guide. Use it to quickly understand the terminology you may encounter in these unique situations.

Term Collection

Consequential Damages

Consequential damages are indirect losses that result from a breach of contract or other legal wrong, but are not directly caused by the breach itself. They represent losses that were foreseeable at the time the contract was made.

Intermediate5-6 min

Negotiation

Negotiation in real estate is the strategic process of discussing and agreeing upon the terms and conditions of a property transaction, aiming to achieve mutually beneficial outcomes for all parties involved.

Intermediate14-15 min

Relocation Assistance

Relocation assistance refers to financial or logistical support provided to individuals or businesses to facilitate a move to a new location, often used by real estate investors to incentivize tenants to vacate a property for redevelopment or sale.

Intermediate4-5 min

Appraisal

An appraisal is an unbiased, professional opinion of a property's market value, conducted by a licensed appraiser, primarily used for lending, buying, and selling decisions.

Intermediate14-15 min

Eminent Domain

Eminent domain is the government's inherent power to take private property for public use, even against the owner's will, provided that fair and just compensation is paid.

Intermediate12-15 min

Due Process

Due process is a fundamental constitutional guarantee ensuring fair treatment and legal safeguards for individuals and entities in government actions, particularly relevant in real estate for protecting property rights and ensuring equitable legal proceedings.

Intermediate8-9 min

Severance Damages

Severance damages are compensation awarded to a property owner when only a portion of their land is taken by eminent domain, and the remaining property suffers a reduction in value as a direct result of that partial taking.

Intermediate5 min

Inverse Condemnation

Inverse condemnation is a legal action initiated by a private property owner against a government entity to recover "just compensation" for a taking of their property, where the government has not formally exercised its power of eminent domain but has effectively deprived the owner of beneficial use or value.

Advanced13 min

Litigation

Litigation in real estate refers to the process of resolving disputes through the legal system, typically involving lawsuits filed in court. It addresses disagreements over property ownership, contracts, landlord-tenant issues, and other real estate matters.

Beginner5 min

Just Compensation

Just compensation refers to the fair market value paid to a property owner when their private property is taken for public use by the government through eminent domain, as mandated by the Fifth Amendment.

Intermediate12-15 min

Public Use

Public use is the legal justification for the government to exercise its power of eminent domain, allowing it to acquire private property for projects that serve the general public, even if the property owner does not wish to sell.

Intermediate5-6 min

Market Value

Market value in real estate is the most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller acting prudently, knowledgeably, and typically uninfluenced by undue stimulus.

Beginner15-18 min