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 5 th 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” 5 th 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