Larger Parcel

January 1, 1 7 min read Larger Parcel Condemnation Eminent Domain Real Estate Valuation Severance Damages
In condemnation proceedings, the larger parcel refers to the overall property from which the condemned property is taken. It includes properties that are affected, although not actually taken, to determine severance damages.
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Definition

In real estate condemnation proceedings, the Larger Parcel refers to the entire property from which a portion has been taken by eminent domain. This includes not only the segment that has been physically condemned but also portions that are indirectly affected by the action. The identification of the larger parcel is crucial for determining severance damages, which are compensation for the decrease in value of the remaining property that is not taken.

Examples

  1. Pipeline Installation: For instance, if a utility company installs a pipeline requiring a 50-foot by 100-foot strip through a 100-acre farm, the 100-acre farm represents the larger parcel. Even though the strip is small, its taking may impact the larger farm adversely.
  2. Highway Expansion: If a highway expansion necessitates taking a 1-acre portion from a 50-acre commercial property, these 50 acres form the larger parcel. The assessment of the impact on the rest of the commercial property is integral to evaluating severance damages.

Frequently Asked Questions

1. Why is it important to establish the larger parcel in condemnation cases?

  • Establishing the larger parcel is essential for accurately determining severance damages and ensuring just compensation for the property owner. This process considers the broader impact of the taking beyond just the acquired segment.

2. How is the larger parcel identified?

  • The identification considers factors such as continuity, unity of use, and unity of ownership. If the property is used as a single entity or owned continuously without division, it can be assessed as a larger parcel.

3. What are severance damages?

  • Severance damages refer to compensation for the reduction in value of the remaining portion of the property after a part has been taken by eminent domain.

4. Can a property have multiple larger parcels?

  • In some complex cases, particularly where properties are segregated by physical barriers or legal boundaries but function collectively, multiple larger parcels could be considered.

5. Does the larger parcel include improvements on the land?

  • Yes, the larger parcel includes both the land and any improvements that may be affected by the condemnation.
  1. Condemnation: The legal process by which the government takes private property for public use, under the power of eminent domain, often with compensation to the owner.
  2. Eminent Domain: A governmental power to take private property for public use with monetary compensation.
  3. Severance Damages: Compensation paid to a property owner when part of their property is condemned, reducing the value of the remaining non-taken property.
  4. Easement: A right to cross or otherwise use someone else’s land for a specified purpose.
  5. Inverse Condemnation: A situation where the property owner seeks compensation because government actions effectively take or damage property without formal condemnation proceedings.

Online Resources

  1. National Association of Realtors®: Comprehensive information on real estate terms and practices.
  2. American Bar Association: Resources on real property law.
  3. The Appraisal Foundation: Information and standards for property appraisal.

References

  • U.S. Department of Housing and Urban Development. “Eminent Domain: An Overview.” HUD.gov.
  • Albrecht, Janice L. “Real Estate Condemnation Law.” American Bar Association, 2021.
  • Jackson, J.P. “Property Valuation and Eminent Domain.” Journal of Real Estate Practice and Education, 2020.

Suggested Books for Further Studies

  1. “Eminent Domain: A Handbook of Condemnation Law” by Janice Lee Albright

    • This handbook provides an extensive overview of eminent domain principles, including concepts like the larger parcel.

  2. “Principles of Real Estate Practice” by David C. Ling & Wayne R. Archer

    • A fundamental resource for understanding general real estate principles, including property valuation affected by condemnation.

  3. “Real Estate Valuation in Litigation” by James A. Eaton, Gilbert D. Johnson, & Paul C. Bardos

    • Focuses on valuation techniques in the context of legal disputes, including those involving larger parcel concepts.

  4. “The Law of Eminent Domain: Fifty-State Survey” by William G. Blake

    • Offers jurisdiction-specific information that benefits professionals dealing with condemnation across different states.

Real Estate Basics: Larger Parcel Fundamentals Quiz

### In cases of condemnation, what does the term “larger parcel” refer to? - [ ] Only the portion of the property directly condemned. - [x] The entire property affected by the condemnation, including indirectly affected areas. - [ ] Only the buildings situated on the taken portion. - [ ] Only the land without considering any improvements. > **Explanation:** The term "larger parcel" refers to the entire property, including the parts affected but not directly taken, to accurately assess the impact. ### What is severance damages related to in condemnation cases? - [ ] The compensation for the exact size of condemned land. - [ ] Repairs needed for any land improvements. - [x] Compensation for the reduction in value of the remaining, non-taken property. - [ ] Tax benefits received after the condemnation. > **Explanation:** Severance damages are compensation attributed to the decreased value of the property's remaining undisturbed part after a portion has been condemned. ### What is the primary purpose of identifying a larger parcel in condemnation proceedings? - [x] To determine the extent of severance damages. - [ ] To divide the property into smaller parcels. - [ ] To reduce tax liability. - [ ] To plan for future development projects by the government. > **Explanation:** The identification of the larger parcel helps in accurately calculating severance damages, which compensate the property owner for diminished property value. ### Which factor is not typically considered in identifying the larger parcel? - [ ] Unity of use - [ ] Unity of ownership - [ ] Continuity of the property - [x] Color of the property buildings > **Explanation:** Factors such as unity of use, unity of ownership, and continuity are significant in identifying the larger parcel, whereas aesthetic factors like color are not considered. ### What governmental power enables the process leading to identifying a larger parcel in real estate? - [ ] Zoning laws - [ ] Tax assessment - [x] Eminent domain - [ ] Environmental regulations > **Explanation:** The process of identifying a "larger parcel" typically follows from the exercise of eminent domain, where the government takes private property for public purposes. ### What typically does not form part of the larger parcel consideration in condemnation? - [ ] Improvements on the land. - [x] Employee operational details inside a facility. - [ ] Land continuity and unity of use. - [ ] Adjoining areas affected by the taking. > **Explanation:** Operational details, such as employee activities, are not considered in identifying the larger parcel. The focus is on improvements, continuity, unity of use, and affected adjoining areas. ### Does the definition of the larger parcel include any improvements on the land? - [x] Yes, it includes any improvements on the land. - [ ] No, it only refers to the vacant land. - [ ] Only if the improvements are government-owned. - [ ] Only if the improvements are residential properties. > **Explanation:** The larger parcel definition encompasses both the land and any improvements which may incur value changes due to condemnation. ### Why might a highway expansion project need to assess a larger parcel? - [ ] To redevelop the entire area for commercial zones. - [ ] To adjust property taxes. - [x] To evaluate severance damages for portions of the property not directly taken but affected. - [ ] To establish public service offices. > **Explanation:** Highway expansions often result in assessing larger parcels to determine the extent of compensation due to severance damages caused to not directly taken parcels. ### Which of the following would be a basis for severance damages? - [ ] Limited use of the government-owned properties. - [ ] Legal disputes among property owners. - [x] Decrease in value of the remaining property due to partial take. - [ ] Increased income from the given properties. > **Explanation:** Severance damages are calculated based on any reduction in the remaining property's value resulting from a partial taking during condemnation procedures. ### Larger parcels are predominantly relevant in which type of scenarios? - [ ] Neighborhood zoning changes. - [ ] Property tax reassessment activities. - [ ] Residential sales transactions. - [x] Condemnation and eminent domain processes. > **Explanation:** Larger parcels play a significant role in condemnation and eminent domain processes to ascertain proper compensation for affected property values.
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