The steps between a public agency deciding it wants land and the owner being paid.
Esshaki Legal Media TeamCurrent as of November 2022
Eminent domain proceedings follow a defined sequence, and an owner’s leverage
depends on knowing where in the sequence they stand.
Pre-filing. The agency determines necessity, has the property appraised,
and makes a written good faith offer, usually required by statute to be
accompanied by the appraisal. The offer stage is negotiable and many matters
resolve here.
Filing and immediate possession. Many statutes allow the agency to take
possession on depositing the estimated compensation, before value is determined.
The owner may generally withdraw the deposit without prejudicing the claim for
more, and should confirm that before withdrawing.
Necessity challenges are available but narrow; courts defer heavily to the
agency’s determination absent fraud or abuse.
Valuation. Just compensation is fair market value at the highest and best
use, determined by appraisal evidence. Partial takings add severance damages to
the remainder, offset in some states by special benefits.
What is compensable. The land, improvements, and in many states business
relocation costs under separate statutes. Lost business goodwill is compensable
in a minority of states.
Fees and costs. Several statutes shift the owner’s appraisal and attorney
fees where the award exceeds the agency’s offer by a stated margin, which
substantially changes the economics of contesting.