Understanding Eminent Domain and Property Rights

Eminent domain is the power of the government to take private property and convert it to public use. This process, also known as a takeover, is outlined in the Fifth Amendment of the US Constitution, which states that the government must provide fair compensation to landlords for any property taken. A confiscation can take the form of an actual seizure of property or a regulatory takeover, which occurs when the government restricts a person's use of their property to the point that it constitutes a seizure. When a condemning authority acquires property through eminent domain, the most common form of ownership acquired is called simple installment ownership. This means that the previous owner has no ownership interest left in the property, as if they had sold it to a third party. Utility companies are often granted the power of eminent domain to acquire storage rights from owners who owned the rights to the original gas formation.

This method of determination is sometimes seen as unfair, since it implies that the buyer needs the property more than the seller or person whose property has been foreclosed needs to sell. A coastal right cannot be arbitrarily or capriciously destroyed or impaired, except in accordance with the law. Landlords whose property adjoins a lake, river, or stream have certain riparian rights associated with their ownership of that property. These rights include access to light, air, vision, entry and exit, and cannot be interfered with or appropriated without fair compensation. When a convicting authority acquires access rights through eminent domain, they also grant a revocable entry permit to the property owner so they can enter and exit from the road. This does not prevent the government from interfering with property rights, but they must provide fair compensation. Federal, state, and local governments can confiscate people's homes under eminent domain laws as long as they are compensated at their fair market price.

Landlords may mistakenly think that the condemning authority has the right to acquire landlocked property through eminent domain and agree to sell for less than it is actually worth. If a political subdivision with the power of eminent domain damages property for public use, then the owner can seek compensation for damages through a legal action of reverse conviction or a constitutional action for reverse conviction. Intangible assets such as damage to business rights do not constitute property in this sense.