What is "eminent domain"?

Eminent domain refers to the power of the government to take private property for public use, provided that the government offers just compensation to the property owner. This legal principle is grounded in the Fifth Amendment of the U.S. Constitution, which protects property rights but allows for the government's necessary actions to serve the greater public interest.

In the context of real estate, eminent domain is often used to acquire land for projects such as highways, schools, parks, or other public infrastructure. The requirement for compensation ensures that while the government has the authority to appropriate land for public benefit, property owners are not left without recourse or financial remedy.

This concept is fundamentally significant in real estate and urban planning as it balances the needs of the community with individual property rights. Understanding eminent domain is crucial for anyone involved in real estate transactions and property law, particularly in assessing the implications of government actions on property ownership and value.