Definition
Eminent domain is the legal power of the government to take private property for public use, provided that the owner is compensated at fair market value. This authority is often exercised for projects such as road expansions, utility infrastructure, or public buildings.
Explanation
Eminent domain is based on the Fifth Amendment of the U.S. Constitution, which states that private property cannot be taken for public use without just compensation. The process typically involves:
- Public Purpose Requirement – The government must prove that the land is needed for a public project (e.g., highways, schools, airports).
- Fair Market Compensation – Property owners must be paid a fair price based on appraisals.
- Legal Challenges – If a property owner disputes the valuation or necessity of the taking, they can contest it in court.
In some cases, eminent domain is controversial, especially when land is taken for private development projects under the claim of economic benefit to the community (e.g., shopping centers or corporate headquarters).
Example
A homeowner owns land where the city plans to build a new highway expansion. The government uses eminent domain to purchase the land and pays the owner $250,000, as determined by an appraisal. The owner has the right to dispute the valuation in court but cannot stop the land seizure if it is deemed necessary for public use.