What is Eminent Domain?

Eminent Domain refers to the power of the government to take private property for public use, provided that the government offers just compensation to the property owner. This principle is rooted in the idea that the government has a responsibility to serve the public good, which sometimes requires utilizing private land for infrastructure projects, such as roads, schools, or parks.

In cases of eminent domain, the government must follow a legal process to ensure that the property owner is fairly compensated for their loss, which differentiates it from simple property acquisition or sale by the owner. This right is foundational in enabling governments to develop necessary public projects while balancing the rights of individual property owners.

Understanding this concept is vital for appraisers, as they may be involved in assessing the value of properties that are subject to eminent domain proceedings, ensuring that property owners receive fair compensation during this process.