Civil court proceedings related to real estate are common in eminent domain scenarios. When local or state authorities plan large projects for the public benefit, their actions may affect the rights of individual property owners nearby.
Property owners may receive offers from parties acquiring property for a large public project. Those who do not agree to sell their real estate holdings may face condemnation proceedings. The state uses the judicial system to force the sale of real estate holdings under California’s eminent domain laws.
Sometimes, property owners may feel grateful that their real estate was not part of a project occurring nearby. However, that gratitude may fade as work on the project begins. Projects for public benefit can cause damage to private property. In such scenarios, inverse condemnation proceedings may be necessary.
What is inverse condemnation?
Traditional condemnation involves the forced sale of real property to facilitate a project for public benefit. The condemning authority must provide compensation amounting to the fair market value of the property it seeks to acquire.
In an inverse condemnation scenario, property owners try to hold condemning authorities or project managers responsible for causing damage to their real estate. Inverse condemnation is essentially a legal claim seeking compensation from the party managing a project because of the damages generated while working on that project.
How do people value inverse condemnation claims?
The extent of the damage to the property and any secondary costs the damage generates can contribute to an inverse condemnation claim. Property owners may have an easier time obtaining compensation when they have multiple estimates or quotes from professionals that fall within the same price range. That way, there is a little question about the true cost of the damage generated.
In many cases, significant damage to real property can cause a variety of secondary losses. Damage to a commercial facility might lead to a business being unable to operate and generate revenue. The property owner may be able to claim lost income or lost rent from frustrated tenants in addition to the actual expense to repair the damage to the property.
Damage to a residential property might leave it unsafe to inhabit, forcing occupants to find a rental or acquire a room in a long-term motel. They may have to take on numerous secondary expenses ranging from takeout food because they don’t have access to a kitchen to pet boarding services. Just compensation may need to include some of those secondary losses.
Seeking compensation for property damage and other losses through inverse condemnation can be a complex process. Property owners dealing with substantial damage may need help taking legal action and estimating the cost of the damage, and that’s okay.