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Introduction to Eminent Domain in
North Carolina
Harvell and Collins, P.A. has expanded its
practice into the area of eminent domain. Accordingly,
we would like to take the opportunity to briefly explain
to our clients some of the basic concepts surrounding
this area of law.
What is Eminent Domain?
Eminent domain is the power of the government (local,
state, or federal), to obtain private property for the
public benefit. When the government wishes to exercise
its power of eminent domain, it does so by instituting a
condemnation proceeding. This is also commonly referred
to as a “taking.”
When Can a State or Federal Government Exercise Eminent
Domain?
Private property may only be condemned or “taken” if it
is for a clearly-defined public purpose or if it is out
of public necessity. Although the concept of public
purpose has recently been expanded by the United States
Supreme Court, it is usually manifested in public works
projects such as parks, roads, bridges, schools, and
other public buildings.
Does the Government Have to
Pay the Property Owner?
The government must pay the property owner for the
taking. No owner may be deprived of his private
property without just compensation. This concept
dates back to old English common law and is firmly
established in the United States Constitution, as well
as in our state constitution and statutes. Determining
the amount of ‘just compensation’ is often a source of
dispute.
How Does the Condemnation
Process Work?
The Condemnation Process begins when a property owner
receives a notice from the condemning entity that
informs the owner of the condemnation and contains an
initial offer of ‘just compensation.’ The two parties
may negotiate over the compensation, but if no agreement
is reached, the condemnor will bring condemnation
proceedings in superior court. After the condemnor
posts a cash bond, the court will direct that the title
to the property be transferred. The owner may then
pursue damages over and above the amount of the
deposit.
Does the Property Owner
Need an Attorney?
The Condemnation Process is designed to protect the
rights of the private property owner against abuse by
the condemnor. However, the condemnation process is
extremely complex and difficult for a layperson to
navigate. While there are statutes designed to
protect the property owner, it is the obligation of the
owner to understand and exercise his or her rights. For
example, ‘just compensation’ is to be determined by the
“highest and best use” of the property. However, the
initial offer communicated by the condemnor may be far
less than that. Without the assistance of a skilled
attorney, it is very difficult to ensure that the rights
of the property owner are protected and that the
property owner is justly compensated.
Conclusion
We hope that our clients find this introduction to
eminent domain helpful and informative. Please remember
that Harvell and Collins, P.A. is ready to assist you in
all condemnation matters.
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