People may acquire real estate through inheritance or a direct purchase. They may own their own homes or properties where they operate their businesses. They may also have investment properties that they rent to others or that they hold with the intention of selling later for development as local property values appreciate.
People who make their mortgage payments and stay up to date on their taxes typically retain full control over their real properties. However, condemnation is one of the rare scenarios in which people may face a forced sale of their real estate holdings.
When is condemnation a concern?
Indiana state statutes include provisions for the mandatory sale of real estate for upcoming government projects. Eminent domain laws allow for the compulsory sale of property needed to complete projects for public benefit.
Government agencies and businesses managing government projects intended for public benefit can condemn real property when owners do not agree to voluntarily sell. Condemnation proceedings require adherence to formal procedures.
The condemning authority should negotiate in good faith with the current owner to try to reach an amicable arrangement for the transfer of ownership. If the current owner refuses to sell after receiving an offer, then condemnation proceedings may occur.
There are several different ways for property owners to fight condemnation attempts. Possible strategies include contesting the fair market value of the property as established by the condemning authority, questioning the need for the parcel’s inclusion or pushing back on the claim that the project is truly for public benefit.
Reviewing a pending eminent domain claim with a real estate attorney can help property owners protect their homes, business facilities and investment properties from seizure, or at least ensure that they receive appropriate compensation, when the threat of a forced sale is at issue.
