Projects for public benefit sometimes require government intervention. State statutes in Georgia allow government authorities and businesses hired to complete major projects for public benefit to purchase real property.
Under eminent domain statutes, property owners may find themselves forced to sell their real estate holdings. The party overseeing the project may make an offer to purchase property in many cases. Homeowners can agree or negotiate. When there’s conflict, litigation might be necessary.
The condemnation process can force a property owner to sell real estate for projects intended for public benefit. In some cases, property owners feel grateful that their land or buildings weren’t subject to condemnation. However, after the project is complete, owners may notice issues. The project may have diminished the value of their property.
How projects can affect property value
There are many ways in which projects intended for public benefit could have a negative impact on local property owners. If the project involves the creation or expansion of roadways, increased traffic could make accessing a home or business parking lot far more hazardous. Business owners may find that they struggle to generate the same amount of revenue now that local customers cannot easily access their facilities.
Those who retain residential properties after a project for public benefit may find that traffic noises affect their ability to live in the home comfortably. They may also have difficulty getting in and out of the driveway every day. A host of other issues could also arise depending on the nature of the project. In such cases, inverse condemnation might be an option.
What is inverse condemnation?
Traditional condemnation occurs when state authorities force the sale of real property for a public project. Inverse condemnation involves a property owner who did not sell their real estate asking for compensation because the project has diminished their property value.
Typically, the property owner pursuing inverse condemnation relief needs to show how the project has affected the use of the property and potentially decreased its fair market value. Provided that there is documentation regarding the increase in traffic or other issues associated with the project, the property owner may be able to ask the state for compensation.
Documenting the issues related to an eminent domain project and determining the impact the project may have had on the property’s value can be a complex process. Real estate owners often need help asserting themselves and protecting the investment that they previously made in real estate after a project for public good starts affecting their use of the property. Seeking guidance is a good way to start.
