Owning property in North Carolina is often a source of pride, whether your home has belonged to your family for generations or you recently purchased your first piece of property. Property owners can generally use their land how they see fit, as long as they comply with all applicable zoning and land use regulations. However, there are times when a federal, state, or local government entity, such as the North Carolina Department of Transportation (NCDOT), can invoke its eminent domain power to seize private land to use for public use projects. In exchange, the government authority must provide compensation to the affected property owner.
While the constitutional authority granting the power to seize private land for public use is referred to as eminent domain, the legal process that occurs when a qualified authority invokes its eminent domain power is called condemnation. If you have received a condemnation notice from a government entity or other authority (such as a utility or communications company) informing you of its intent to seize your property for public use in exchange for compensation, it’s critical that you enlist the guidance of a highly experienced and trusted North Carolina eminent domain attorney to help you understand your legal rights and options. At Hinson Faulk, P.A., we are committed to serving every client with the attention, care, and respect they deserve during this confusing and daunting time.
The condemnation process can only be initiated by entities that have eminent domain authority. Any federal, state, or local government entity has eminent domain power, which allows construction projects that benefit the public in some way to proceed. For example, NCDOT may invoke its eminent domain power to build a new highway or expand an existing roadway in order to ease traffic congestion in a certain area. Or, eminent domain power can be used to build a new public school or library, which both satisfy the public good requirement.
Other entities can be authorized to exercise eminent domain power as well. Under NC General Statute 4A, private condemnors, such as corporations, railroad companies, as well as utilities and telecommunication companies (to name just a few), may be authorized to invoke this power. If an entity lacks eminent domain authority, it may not initiate a condemnation action against private property owners.
When an authorized entity wishes to invoke its eminent domain power, it must satisfy two major requirements. First, it must be able to demonstrate that the proposed project benefits the public in some way, such as improved traffic flow, greater access to public utilities, or expanded public education opportunities. Second, the condemning authority must provide “just compensation” to the affected private property owners in exchange for seizing their land. The term “just compensation” generally means the fair market value of the property, plus the impact on the value of any remaining property.
If the condemning authority can satisfy these requirements, the condemnation process can proceed. Below is a brief overview of the steps that are typically involved in the condemnation process in North Carolina.
The condemning authority will notify the property owner of its intent to exercise its eminent domain power to take the land for public use. This first attempt to offer compensation for voluntary transfer usually includes an initial offer in the hope that the property owner will simply accept it and allow the legal process to move forward. However, the initial offer tends to be much lower than the property’s actual market value, so the property owners should work with their attorneys to hire an independent appraiser and negotiate a more accurate and favorable amount of compensation.
If the parties are not able to reach a settlement through negotiation, the condemning authority can file a condemnation lawsuit and notify the property owner of its intent to take the property. The authority will deposit the funds from its offer with the clerk at the time it files the condemnation lawsuit.
As a property owner affected by condemnation, you have the right to gather evidence and demonstrate why your property is worth more than the amount of compensation the condemning authority has proposed to give you. Eminent domain laws and the condemnation process can be complex to understand and navigate on your own, which is why partnering with Hinson Faulk, P.A. is the best way to ensure that your rights remain upheld at every opportunity.
In most cases, no. Challenging a condemnation action is difficult, especially if the government entity satisfies the public use requirement. However, you can push for a more equitable and just amount of compensation in exchange for the taking of your property.
No, as most initial offers do not reflect the true market value of your property. Work with an experienced condemnation lawyer to negotiate a more favorable settlement offer.
Although you are not required to hire an attorney, doing so is highly recommended to maximize your compensation offer and keep up with strict court deadlines.
As soon as you hear about a potential construction or road improvement project in your community, it’s worth familiarizing yourself with the ins and outs of the condemnation process and your rights as a landowner. When you enlist the help of a highly qualified and trusted North Carolina eminent domain attorney, you can access the support you need to make more informed decisions with greater clarity and confidence. With a skilled condemnation lawyer by your side, you can maximize your chances of securing the fair and favorable settlement you deserve.
