Real Property – Eminent Domain

• Eminent Domain is the government’s power to take private property

• “Condemnation” is the procedure through which the power of eminent domain is exercised

Real Property – Eminent Domain

• Power existed prior to the Constitution– An inherent aspect of sovereignty

• 5th Amendment limitations– “nor shall private property be taken for public use without

just compensation.”

Real Property – Eminent Domain

• U.S. Constitution• State Constitutions• State Statutes – tell us…

– Who?– For what?– How?

• Case law

Real Property – Eminent Domain

• Transformation of urban decay a.k.a. “blight”

• 5th Amendment – “public use”

• “Public purpose”

Real Property – Eminent Domain

• Can take for public use

• Can take to eliminate blight

• Can take to eliminate land oligopoly

Real Property – Eminent Domain

• Can you take a nice residential neighborhood and give it to a big drug company?

• Can you condemn solely for economic development?– Economic revitalization– Employment– Property values– Tax revenues

Real Property – Eminent Domain

• Suzette Kelo and her “little pink house”

Real Property – Eminent Domain

• Other issues– Inverse condemnation– Regulatory taking– Valuation– Taxation i.e., recognition of gain or loss

• IRC§1033 Involuntary conversion