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THE
CONDEMNATION PROCESS
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What
is condemnation?
Condemnation is the power to take private property for a public
purpose. The power of condemnation is also known as the power
of eminent domain.
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What
are my rights?
The
United States and Florida Constitutions guarantee important property
rights. You can contest the taking of your property, but if a
judge rules that your property may be taken, you have the right
to receive full compensation for your property. Full compensation
requires a practical attempt to make the property owner whole.
This means that you are entitled to be put in the same financial
position after the taking that you were in before the taking
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Who
pays for the protection of my rights?
Florida
has a long tradition of upholding the right to own private property.
You have the right to be advised by an attorney and other experts,
such as real estate appraisers, accountants or engineers who specialize
in eminent domain cases. The Florida Constitution requires that
the government or condemning authority pay reasonable attorneys
fees and costs, including expert witness fees, associated with
the taking of private property. The intent of this requirement
that the government pay for the owners attorneys fees
and costs is to put the property owner on an equal footing with
the government.
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How
are the attorneys fees and costs determined?
Once you have
received your compensation for the taking, the award of attorneys
fees and costs is determined by the court. The award of attorneys
fees is based primarily on the benefits over and above the original
government offer that the attorneys are able to obtain on behalf
of the client.
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Who
can take my property?
Federal,
state and local governments have the power to condemn private
property. This power has been delegated to many governmental agencies
such as the Florida Department of Transportation. The government
has also delegated the power of eminent domain to public utilities
and in certain, very limited situations, to private companies
and individuals.
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Can
the government take as much of my property as it wants?
No. The government can only take as much of your property
as the court finds is reasonably necessary to accomplish a public
purpose.
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Who
decides whether the condemnation of my property is for a public
purpose or private purpose?
Only a judge can decide. Even if the condemning authority
believes the condemnation is for a public purpose, a judge can
rule otherwise and deny the government the right to take your
property.
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Should
I be doing anything before my property is taken?
There
are several actions an owner may take before his property is taken.
Because the owners actions may help or hurt his case, it is
wise for an owner to seek the advice of an attorney when considering
pre-condemnation actions.
The owner should avoid taking positions, especially written positions,
which may be used against him in the condemnation proceeding. If
the owner contests his tax assessment, for example, that may be
used against him in the condemnation case if the owner asserts a
higher value.
Do not discuss any issue pertaining to the value of your property
with anyone without first consulting an attorney. Unlike other areas
of civil law, in eminent domain the government is your opponent
- not your protector. What you say may be used against you at a
later date.
The owner
should maintain the appearance and condition of the property.
Visual impressions, even to sophisticated professionals, are important,
and appraisers and other experts will be inspecting the property
before it is condemned. It is in the owners best interest
to have the property looking as good as possible.
Contamination
on the property may reduce the final award, delay the payment
of funds to the owner or result in the owners liability
for cleanup charges. An owner should consult with an attorney
and take whatever steps necessary to assure that the property
remains free of contamination.
The value
of the property is often enhanced by favorable land use permits.
The securing of a rezoning, plat approval or building permit may
result in a higher valuation of the property. The decision of
whether to apply for such permits must always be weighed against
the effect which a potential denial will have on the case. It
is thus wise to seek the advice of an attorney before proceeding
with a land use application.
As leases
and mortgages are negotiated, provisions known as condemnation
clauses may be included. A condemnation clause spells out
the specific rights of all parties to the agreement in the event
a portion or all of the property is condemned. Because the condemnation
clauses may affect the division of the final award, the owners
attorney should be consulted on the condemnation clauses contained
in these documents.
Do not supply
copies of leases, expense records, profit and loss statements
or similar documents to the government or its representatives
until you have referred such requests to your attorney.
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When will
I be required to give up my property?
The
date for surrender of possession depends upon whether the acquisition
is accomplished by a sale of the property in lieu of condemnation,
or by a court Order of Taking. In no event will an owner be required
to surrender possession of his property until either he agrees
to a certain date, or the judge sets a date.
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What
will happen if I do not accept the governments offer?
The
government will file a lawsuit to condemn the portion of your
property needed to construct its public project. You are entitled
to a hearing on the governments right to take your property.
If the court grants the government the right to take your property,
then an Order of Taking will be entered. The government will then
deposit its offer or good faith estimate of value
into the court registry.
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If
the court enters an Order of Taking, how do I get my money?
Your attorney will file a motion and schedule a hearing.
The motion will ask the court for permission to withdraw the money
and disburse it to the owner. The motion and notice of hearing will
be sent to all parties who have an interest in your property (mortgagees,
tenants, lien holders, etc.).
At the hearing,
anyone who has an interest in the property may make a claim to
the funds deposited by the condemning authority. Prorated real
estate taxes and special assessments are also deducted and paid
to the appropriate officials before the owners balance is
determined and disbursed.
If it is not
possible to make a precise apportionment of the Order of Taking
deposit, the funds will be placed into a joint interest-bearing
account. These funds will be disbursed to the parties at the conclusion
of the case, after the court enters a final order of apportionment
or the parties are able to reach a settlement agreement.
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If
I withdraw the money which the government deposits in the court
registry, will I be able to ask for more at the trial?
Yes.
Your withdrawal of the Order of Taking funds is without prejudice
to your final claim. This means that neither the amount of the
governments deposit nor the fact that you use it during
the case can be used against you in the trial. Once you withdraw
the funds, however, there is nothing to prevent the government
from presenting testimony at trial that is lower than the deposit.
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If
I dont agree with the governments offer, who decides
how much money I get?
A jury. State law provides that a jury of twelve persons
determines the amount of compensation to be paid to an owner who
loses his property through condemnation. You are entitled to be
paid for the value of your property taken, damages to your remaining
property caused by the taking and under certain circumstances,
damages to your business caused by the taking.
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Is
a tenant also considered an owner of property?
Yes.
Under Florida law, a tenant is also considered an owner of property
and is entitled to the same constitutional protections as the
fee simple owner.
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The
taking of my property will hurt my business. Under what circumstances
am I entitled to compensation for damage to my business?
Florida
has a business damage statute which allows an owner of a business
to recover compensation for business damages if part of his property
is condemned.
In order to
qualify under this statute, however, the business owner must meet
four tests.
1. The condemnation
must be undertaken by a public body, rather than a public utility.
For example, an owner whose property is condemned by a county
would qualify, while another owner whose property is condemned
by Florida Power may not.
2. The condemnation
must be for a right-of-way. An owner whose property is condemned
for the construction of a road, for example, may qualify, but
an owner whose property is condemned for a school may not.
3. The taking
must be a "partial taking," that is, a taking of only
a portion of the property, and the business affected must be located
on both the property, and the business affected must be located
on both the property taken and on the remaining property.
4. The business
must be established at the specific location that is being condemned
for at least 4 years prior to the taking.
If a business
owner does not meet each of these requirements, it is probable
that he will not be able to recover compensation for business
damages, even if the taking damages his business operation.
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Do
I pay taxes on my award?
Because a condemnation is considered an involuntary
conversion, it is treated differently from voluntary sales. You
will have a period of time to reinvest the condemnation proceeds
and defer your tax obligation until a later date.
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*OVERVIEW:
This may be the first time your property has been condemned.
This information should give you a basic understanding of
what is involved in the condemnation process. As you read
this information, the following important matters should
be kept in mind:
The questions and answers are, by necessity, general and
not intended to apply specifically to your case. The facts
of every case vary. Please utilize this information as a
general overview and not a precise opinion on any particular
issue in your case.
This
information should not serve as a substitute for consultation
with your attorneys. If you have any questions about the
condemnation process or the particularities of your case,
please feel free to call us and either discuss your concerns
over the telephone or set up an office conference. Our best
clients are our best informed clients, and this web site
is intended to serve as only one of several means of providing
you the information you need to understand your case and
make well-informed decisions.
The
statements herein reflect the law as of January 2000. Because
the laws change, some of this information may no longer
be correct as of today. The laws affecting owners
rights in condemnation cases are established by our constitution
and the legislature. Should the legislature pass a statute
or a court make a ruling which changes a law discussed herein,
that portion of this information may become obsolete.
This
web site is intended to describe the condemnation process
in state courts in Florida. Condemnation laws in different
states and condemnation laws in federal courts in Florida
may differ substantially in certain respects from the overview
contained herein.
We hope
that you will find this information helpful. Should you
have any questions, please call us at (813) 253-3755, or
toll free at (877) 931-9100.
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