Necessity

What is Necessity in Real Estate?

The term “Necessity,” also known as “Public Purpose,” occurs in real estate primarily within contexts involving eminent domain and expropriation. Governments may need to acquire private land to serve the greater good of the community — for instance, to build public infrastructure like roads, schools, or hospitals. This doctrine permits the exertion of governmental power to compel owners to sell their property, provided that fair compensation is given.

Detailed Explanation

Necessity implies that the positive impact and benefits of the proposed public use outweigh the setbacks experienced by private property owners due to expropriation. This doctrine ensures that real estate development plans strategically align with long-term goals for local, state, or national development, while upholding legal fairness and compensation for private owners.

Examples of scenarios involving Necessity include:

Construction of Highways: Governments often require land to build or expand highways, bridges, and interstates which are crucial for effective transportation.
Public Schools: The need to build schools in growing communities may necessitate the acquisition of private land to serve educational purposes.
Urban Redevelopment Projects: Cities might enforce eminent domain in blighted areas to foster urban regeneration and economic revitalization.

Frequently Asked Questions (FAQs)

Q1: Is necessity always required for eminent domain?

A1: Yes, the principle of necessity is fundamental to justify using eminent domain. The land must be required for public use or benefit, and fair compensation must be provided to the affected owners.

Q2: What kind of compensation is provided when land is taken?

A2: Affected property owners are entitled to fair market value compensation for their property. The valuation includes considerations of the property’s highest and best use.

Q3: Can property owners contest the government’s claim of necessity?

A3: Yes, property owners have the right to legally challenge the government’s claim of necessity or the valuation offered as compensation.

Eminent Domain: The right of government or its agent to expropriate private property for public use, with payment of compensation.
Condemnation: The legal process by which property is taken through eminent domain.
Fair Market Value: An estimate of the market value of a property, based on what a willing buyer would pay to a willing seller.
Expropriation: The act of a government taking privately owned property to be used for the benefit of the public.
Public Use: The use of property that benefits the public, such as roads, parks, schools, and government buildings.

Online Resources

References

“The Law of Eminent Domain” by Sackman, Nichols
“Principles of Real Estate Practice” by Stephen Mettling, David Cusic
Cornell Law School - LII: Eminent Domain

Suggested Books for Further Studies

“Eminent Domain: A Handbook of Condemnation Law” by William Scheiderich, Michael T. Cokinos
“Redevelopment and Eminent Domain” by Vicki Been
“Land Use and Sustainable Development Law: Cases and Materials” by John R. Nolon, Patricia E. Salkin

Real Estate Basics: Necessity Fundamentals Quiz

### What does the term 'Necessity' refer to in the context of real estate? - [x] The government's need to acquire land for public purposes. - [ ] The essential documents needed for a real estate purchase. - [ ] A building's compliance with zoning laws. - [ ] The financing required to buy a property. > **Explanation:** 'Necessity' refers to the situation where the government needs to acquire land to serve public purposes, such as building infrastructure. ### Can property owners challenge the government's claim of necessity? - [x] Yes, property owners have the right to contest the claim. - [ ] No, they cannot challenge it. - [ ] Only in federal cases. - [ ] Only if the property is used for business. > **Explanation:** Property owners have the right to challenge the government's claim of necessity or the valuation of compensation offered. ### What must the government provide when taking private property under the notion of necessity? - [ ] Mortgage forgiveness - [ ] Legal representation - [x] Fair market value compensation - [ ] New property > **Explanation:** When taking private property for public use, the government must provide fair market value compensation to the property owners. ### What is typically the basis for property compensation in cases of eminent domain? - [x] Fair market value - [ ] Original purchase price - [ ] Owner's asking price - [ ] Future potential value > **Explanation:** The basis for compensation in eminent domain cases is usually the property's fair market value. ### Under what condition can the government exercise eminent domain? - [x] There must be a justified public use - [ ] Owner's consent - [ ] The property is commercial - [ ] The property is vacant > **Explanation:** The government can exercise eminent domain if there is a justified public use of the property in question. ### Which legal term describes the required land acquisition for public purposes? - [ ] Deed - [ ] Leasing - [x] Expropriation - [ ] Foreclosure > **Explanation:** Expropriation is the legal term used to discuss land acquisition by the government for public purposes. ### What kind of projects typically justify the use of necessity in real estate? - [ ] Residential home purchases - [ ] Buying vacation properties - [x] Building infrastructure like highways and schools - [ ] Creating private shopping centers > **Explanation:** Projects like building highways, schools, and other public infrastructure typically justify the use of necessity. ### What principle justifies that the benefits to the community outweigh setbacks to property owners? - [ ] Laissez-faire - [ ] Common Law - [ ] Adverse Possession - [x] Public Purpose or Necessity > **Explanation:** The concept of Public Purpose or Necessity justifies that the benefits to the community outweigh setbacks experienced by individual property owners. ### What is another term for 'Necessity' used in real estate? - [ ] Restriction - [ ] Investment - [x] Public Purpose - [ ] Land Use > **Explanation:** Another term for 'Necessity' used in real estate is 'Public Purpose.' ### What aspect does 'Necessity' most closely address? - [x] Justification for acquiring land for public use - [ ] Legal disputes between private parties - [ ] Construction quality - [ ] Property taxation > **Explanation:** "Necessity" addresses the justification for government acquiring private land to use for the public benefit.