Definition
Constitutional rights in the context of real estate refer to the rights and protections provided by the federal or state constitutions to property owners. One prominent example is the requirement for the government to pay just compensation to property owners when taking their property under the power of eminent domain. This power allows governments to seize private property for public use, but it mandates that the property owner must receive fair market value for their loss.
Per the Fifth Amendment of the United States Constitution, no individual shall be “deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.”
Examples
Example 1:
Eminent Domain for Highway Construction
The state decided to build a highway that would run through the Alberts’ home. As part of the eminent domain process, the state is constitutionally obligated to provide the Alberts with just compensation, which equates to the market value of their property.
Example 2:
Urban Redevelopment
As part of urban redevelopment efforts, a state city seeks to expropriate several rundown properties to build a public park. Property owners are entitled to receive fair market value compensation for their expropriated properties under the constitutional clause for eminent domain.
Example 3:
Pipeline Installation
A gas company seeks to lay a pipeline and requires acquiring land from private owners. In this eminent domain situation, owners are entitled to just compensation based on the market value of their property being used.
Frequently Asked Questions (FAQs)
Q: What is “just compensation” in eminent domain proceedings? A: Just compensation typically means the fair market value of the property at the time it is taken by the government. It is meant to ensure that property owners are not economically worse off after the taking.
Q: Can a property owner challenge the amount of compensation offered in an eminent domain proceeding? A: Yes, property owners can dispute the offered compensation amount. They can negotiate for a higher amount or take legal action, seeking a jury’s determination of the fair market value.
Q: Are tenants entitled to compensation in eminent domain proceedings? A: Tenants may be entitled to compensation depending on the terms of their lease and the laws of the particular jurisdiction. They may receive relocation assistance or compensation for leasehold interests.
Q: Is public use narrowly defined when it comes to eminent domain? A: “Public use” has been interpreted broadly and can include public utilities, highways, and redevelopment projects meant to benefit the public economically, even if it involves private developers.
Related Terms
Eminent Domain
The power of the government to take private property for public use, with the requirement to provide just compensation to the property owner.
Just Compensation
The requirement under the Fifth Amendment to provide fair market value payment to property owners for property taken under eminent domain.
Due Process
The legal requirement that the state must respect all legal rights owed to a person, ensuring fair treatment through the normal judicial system.
Fair Market Value
The estimated amount at which property would change hands between a willing buyer and willing seller, neither being under any compulsion to buy or sell.
Online Resources
- National Constitution Center: Constitutional Rights
- Legal Information Institute (Cornell Law School): Fifth Amendment - Just Compensation Clause
- American Bar Association: Eminent Domain Overview
References
- U.S. Constitution, Fifth Amendment
- Kelo v. City of New London, 545 U.S. 469 (2005)
- Berman v. Parker, 348 U.S. 26 (1954)
Suggested Books for Further Studies
- Barlow Burke, Jr., “Real Estate Transactions: Examples and Explanations”
- Jesse Dukeminier, “Real Property”
- Gerald Korngold, “Private Rights and Public Improvals: The Taking Issue in Land-Use Regulation”
- Wendell Pritchett, “Robert Clifton Weaver and the American City: The Life and Times of an Urban Reformer”
