Beware: Eminent Domain

courtesy of CompleteLandlord.com

Many people are unaware that the government can, in some circumstances, forcibly take your property, even if you are complying with all laws.

It is a law known as eminent domain and it allows the government to seize your property (also referred to as expropriation) if they intend to use it for public benefit or need as long as they provide you with what they determine is just compensation.

Though most uses of eminent domain are for public utilities or roads, a recent expansion of this law means it is now possible for the government to expropriate your property to benefit private developers if they demonstrate even a modest measure of public use.

The 2005, Supreme Court case Kelo v. City of New London broadened municipalities' rights; they can now bulldoze buildings to make way for hotels or shopping malls. Before the Kelo case, properties were only demolished to make way for projects with demonstrated public need.

The Kelo case expanded this definition incredibly, allowing the government to take property for use by a private developer, opening the door for abuse of power by influential development firms.

Keep yourself informed about eminent domain decisions made in your community as it is the best protection against the erosion of your rights as property owners