The government doesn’t always need a for-sale sign to be posted in front of your San Diego property. Not only that, you may have to give up your property despite the fact that you’ve outright rejected the government’s unsolicited offers to buy your home or other property. Why? Because our property rights are limited by the federal, state, and local government’s sovereign right to take property through “eminent domain” (also known as condemnation). The power of eminent domain comes from the government’s right under the 5th Amendment to the U.S. Constitution and under our California Constitution to take private property for a “public use” in exchange for “just compensation,” e.g. the fair market value of the property. Both willing and unwilling sellers who find themselves in this situation have to act quickly to challenge the government’s actions or unfair offers of compensation. This often starts by recognizing that there are limits to the government’s right to condemn property through eminent domain, and you have your own property rights that you must be ready to immediately act upon.
As pointed out earlier, any property taken by the government must be for a public purpose, such as to build schools and roads, to protect the public health and safety, or for other public projects. In return, you’re owed just compensation. So what is fair compensation? This is one of the most important questions to ask in every condemnation case, because simple fair market value isn’t always the answer. First, the government’s appraisal of fair market value will probably be different from another appraiser’s findings. Second, you must identify all property interests and costs that should legally be reflected in the compensation offered for your relocation, especially when there is a business on the land to be taken. In these cases, fixtures, equipment, and your business’s goodwill may be affected by a move, and these values need to be assessed and negotiated. Often tenants also have the right to be compensated for their interests in a lease, such as the difference between the rent under the lease and a potentially higher fair market rent once the property is condemned. What’s more, eminent domain can affect you even if your property isn’t being condemned. You may instead be in the situation where the government’s actions on neighboring land affect your own property and diminish its value. Or it may be that even though you still own your property, it is so heavily regulated that you lose almost all value in it, causing the government’s actions to amount to a “regulatory taking.” In any of these situations, we’ll seek the compensation owed to you for your loss.
Here in San Diego, you may often come across local news of government takings through eminent domain. Recently, the San Diego Union Tribune’s Matthew Hall reported that if the San Diego Chargers build a downtown stadium, the city might have to take over private land through its eminent domain power. Similarly, Michele Clock of the San Diego UT notes that as part of Lemon Grove’s downtown redevelopment, the city may have to resort to taking land through eminent domain if negotiations to purchase a property (on which a storage business is located) fail. If you’re facing similar circumstances, whether or not you should take the deal offered or go to court instead greatly depends on the legality of the government’s actions, and on how much the government is offering compared to how much you believe your property is worth. In helping you answer these questions, we’ll also review whether the government agency involved is following the required legal process in condemnation proceedings, and strategize and prepare for the public hearing that’s held before an eminent domain lawsuit is filed. If a favorable settlement isn’t reached, we’ll prepare for trial, file the required documents, and pursue your rights in court. Avoid costly mistakes and make informed decisions by engaging San Diego Law Firm as soon as you learn your property has been targeted. We’ll work to strengthen your bargaining power when negotiating with the government, coordinate with experienced appraisers, and pursue your rights in court when needed to further your interests. Whether it’s your residence or commercial real estate that’s at stake, or if you’re a business owner leasing property that faces condemnation, our experienced San Diego real estate lawyers understand your needs and are here to help. To contact San Diego Law Firm, call us at (619) 794-0243.
