Eminent Domain Step-by-Step Process

Eminent Domain

The Step-by-Step Process

This is a brief and typical step-by-step eminent domain process for a commercial property with business tenants:

Acquisition

1. The public agency determines the properties they need for their project.  This may be the entire property, known as a full take or they may need only a portion of the property, known as a partial take.
2. The property owner is contacted by the agency to let them know of the agency’s intent to purchase the property.
3. The agency contacts the property owner to schedule a time for a walk-through of the property with the agency’s appraiser.
4. The agency relocation agent contacts the tenants that occupy the property to gather business information and describe the relocation benefits.
5. The agency appraiser and relocation agent walk the property to gather information to formulate the value and to differentiate between real property and personal property.
6. The agency makes an offer to the property owner based on their appraisal and the agency’s determination of the property’s fair market value.
7. The property owner either accepts the agency’s offer or begins negotiations by providing a counteroffer with their reasoning for a different value.
8. The agency reviews property owner’s counteroffer.
9. If a settlement on the property is not reached, mediation is scheduled and the agency files condemnation.
10. Early possession and use of the property is requested by the agency.
11. When possession and use is granted, the agency releases funds to the property owner based on the agency’s original offer.
12. A court date is set to hear the condemnation case.
13. If mediation does not settle the case, the agency makes a final offer 30 days before trial.  Legal fees are awarded to the property owner if the court settlement is 10% over the agency’s final 30 day offer.
14. The court determines the fair market value of the property.
15. The agency submits any increased amounts to the court for the property owner.
16. The property title is transferred from the property owner to the public agency.

Relocation

1. Relocation eligibility begins at the time of the offer to the property owner.  Shortly after the offer is made to the property owner, the tenants are notified of their relocation eligibility and given a date when they must vacate.
2. The agency’s relocation agent acquires moving bids for each tenant.
3. Each tenant finds their new location.
4. The tenants relocate to their new location.
5. The agency pays costs they determine are eligible to the business.

 These are the main steps of the eminent domain process.  Each of them can have many important parts to them that will have an influence on the success of your property sale or business relocation.

 Martyn would be happy to answers your questions with a one-on-one conversation, email, or with one of his Eminent Domain Workshops.