What Do Eminent Domain and Condemnation Mean for North Carolina Landowners?

Road sign - Private Land, No Hunting or Trespassing Concept for eminent domain-land condemnation.

Eminent domain is a long-established power by the government that can result in you being forced to sell your land. For instance, if you purchased a property on a piece of land that the government wants to use for a highway, park, or other public purpose, it may seize your land. While the government may have the right to take your land for public use, it cannot do so without providing you with “just compensation.” It is crucial for property owners to understand precisely what eminent domain means and how the land condemnation process works. What is Eminent Domain?

Eminent domain refers to the right of the federal, state, or local government to seize private property and convert it to property used for public purposes. Specifically, eminent domain was established in the Constitution’s Bill of Rights under the “Takings Clause” of the Fifth Amendment, which specified that private property shall not be taken for public use without just compensation. In other words, the government is only permitted to take property from a landowner if the intention is to use it for a purpose that provides a benefit to the public — and the owner is compensated fairly.

North Carolina law provides a list of entities that are permitted to exercise eminent domain at the state level, and the conditions under which they may exercise the power. N.C.G.S. § 40A-3 authorizes eminent domain for the purposes of private utilities and public works projects. The statute also allows for local public condemning authorities to exercise eminent domain, including counties, municipalities, and local public entities.

Common examples where the power can be exercised include the following:

  • Projects such as roads, highways, and bridges
  • Creating a park
  • Building a hospital
  • Putting down natural gas or water lines
  • Constructing a town hall building
  • Installing electric lines
  • Putting down telephone cables

In the event the government decides to take your property pursuant to eminent domain, you may have no choice in the matter. However, you can still challenge the compensation being offered and fight to ensure it is adequate.

What is the Difference Between Condemnation and Eminent Domain?

Although the two terms are sometimes used interchangeably, it’s important not to confuse eminent domain with condemnation. While eminent domain is the government’s right to take private property, condemnation is the process by which a government agency may exercise that power. Condemnation usually falls into one of two primary categories — it can be either total or partial.

With total condemnation, the entire parcel of land belonging to the property owner is taken. A partial condemnation is just as the name suggests in that the taking only constitutes part of the property owner’s land. A taking can be permanent, meaning that the interest will never revert to the original property owner — or it can be temporary, such as in cases involving construction easements which are only needed for a specified period of time.

Obtaining Just Compensation for Your Property

Disputes concerning condemnation often arise over what constitutes “just compensation.” In North Carolina, it typically means considering the property’s fair market value prior to the taking, versus the fair market value immediately following the taking. Importantly, the value paid must reflect the highest and best use for the land, regardless of whether it is being used in such a way at the time of condemnation.

A condemning authority is required to pay the amount of compensation to the court before the piece of property can be taken — but an estimate can still be challenged after the payment has been made. In cases involving a partial condemnation, the condemnor will usually want to value only the portion of land that was actually taken. However, “just compensation” requires that not only the land that was taken be compensated, but a landowner should also be paid for the reduced value of the land that is remaining.

In addition to the protections provided by the U.S. Constitution, North Carolina law also provides protections regarding uncompensated takings. Similar to federal law, the North Carolina statute limits the use of eminent domain to takings for public use or purpose and requires that just compensation be provided.

Contact an Experienced North Carolina Eminent Domain and Condemnation Attorney

If you have a condemnation case, it’s crucial to have the representation of a skilled attorney to ensure you receive fair value for your land. Located in Charlotte, Murray Law provides dedicated representation to landowners concerning condemnation proceedings against the government and utility companies. If you are facing an eminent domain and land condemnation action affecting your land in North Carolina, call Murray Law’s Charlotte office at 704-940-9095 to schedule a consultation to discuss your case.

Categories: Eminent Domain