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To help you understand the basic
information about Eminent Domain law, we’ve compiled a list
of frequently asked questions. Remember that sometimes the smallest
pieces of land taken can have the largest impact to your business
or residence. Who is affected by eminent domain?
Business owners, landowners and lessees are the
primary persons or entities who are affected by the power of the state,
county, city or federal government (“Condemning Authority”)
to take private property for public use.
How is the value of the property taken determined?
The owner of the land must be paid full compensation.
Full compensation includes the value of the property taken and damages
to the remainder property. Included in full compensation is “fair
market value” — the price a seller and a buyer, both willing,
but not compelled to sell or buy the property, would agree upon in
fair negotiations with full knowledge of relevant facts.
What factors apply to “fair market value?”
To determine a property’s “fair market
value” the highest and best use of the property and the proper
selection of comparable sales by the owner’s appraiser are the
most important factors.
How does the Condemning Authority take action on the property?
Once acquisition of all or a portion of the landowner’s
property is determined, the Condemning Authority files a Petition
in Condemnation. The Petition states the legal description of the
property taken, identifies the owner of the property and others who
may have an interest such as mortgage holders and tenants, and the
public use, which requires the taking.
Can landowners challenge the Petition?
Within 20 days after being served with a Petition
in Condemnation and prior to an Order of Taking hearing, land and
business owners must file an Answer or Response. In this pleading,
owners may object to the necessity of the taking, which requires the
Condemning Authority to present evidence that the taking of the land
is necessary for public use and to present evidence of the good faith
value of the land taken. A judge will decide if the Condemning Authority
has met this burden of proof.
What happens if the judge grants the Petition?
Most often, a judge will rule in favor of the Condemning
Authority, and enter an Order of Taking. Within 20 days from this
date, the Condemning Authority is required to deposit its “good
faith estimate” into the registry of the Court, which is its
opinion of the full compensation landowners should receive. Upon the
deposit of these funds into the registry of the Court, by operation
of law the Condemning Authority becomes the owner of the property
taken. If the landowner or tenant needs to retain possession of the
property to facilitate relocation to a new site, owners and tenants
may be allowed to do so upon proper application to the court.
Do landowners have to accept the “good faith estimate?”
You do not have to accept the valuation made by
the Condemning Authority, but you may withdraw from the registry of
the Court the “good faith estimate” deposited by it. After
satisfying any valid encumbrances on the property, you are entitled
to the funds. After acceptance of the “good faith estimate,”
you may contest the Condemning Authority’s valuation of your
property.
How is the land value contested and business damages determined?
Florida law permits owners to contest the value
of their property by retaining an expert appraiser who is skilled
in determining the value of property. Other experts such as engineers,
land planners and contractors work with the appraiser to assist in
accurately determining full compensation. Business damages are determined
by a CPA who has reviewed financial records and the impact to the
property caused by the taking. If the value is not settled with the
condemning authority, a jury of 12 Florida citizens will hear the
case and determine full compensation and/or business damages.
Who pays the fees and costs for eminent domain legal action?
Attorney’s fees, expert fees and costs are
paid by the Condemning Authority pursuant to Section 73.092, Florida
Statutes, which states:
“…the Petitioner (Condemning Authority) shall pay all
reasonable costs of the proceedings in the circuit court,
including, but not limited to, reasonable attorney’s fees,
reasonable appraisal fees, and, when business damages
are compensable, a reasonable accountant’s fee, to be
assessed by the court.” |
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