Iowa Eminent Domain Process

The condemning authority must provide written notice of a public hearing to each affected property owner, which shall be mailed at least 30 days prior to the hearing. (IOWA CODE § 6B.2A(1))

The condemning authority must appraise the property to be acquired in order to determine the fair market value. At a minimum, the appraisal must include, but is not limited to: an itemization of the appraised value of the real property or interest in the property, any buildings on the property, all other improvements including fences, severance damages, and loss of access. In determining fair market value of property, the acquiring agency shall not consider only the assessed value assigned to such property for purposes of property taxation. (IOWA CODE § 6B.45)

The condemning authority may waive the appraisal process if the property sought to be acquired has a low fair market value (such as a small easement taking for utilities). In lieu of an appraisal, a letter must be sent by certified mail to the property owner at least thirty days before negotiations, which includes the methods used in arriving at an offered price for voluntary easements including the range of cash amount of each component. (IOWA CODE § 6B.54)

Depending upon the complexity of the case and the amount of additional damages done to the property, it may be necessary to allow condemnation to occur in order for the property owner to receive just compensation.  If this is the case, an eminent domain lawyer must be hired to assist the property owner with their claim.

At least 10 days prior to negotiations, the condemning authority must provide the property owner with a copy of the appraisal. The appraisal sent to the property owner must be the appraisal used by the condemning authority to determine the amount they believe to be just compensation for the property. All other appraisals made on the property as a result of the condemnation proceeding are available to the property owner upon request. (IOWA CODE § 6B.45)

The condemning authority must make a good faith attempt to negotiate a purchase price with the property owner prior to filing a condemnation proceeding. (IOWA CODE § 6B.2B)

The offer made by the condemning authority may not be less than the fair market value as determined by their property appraisal, or less than the value determined under the acquiring agency's waiver procedure for properties with a low fair market value. (IOWA CODE § 6B.2B)

Except when a property is being acquired for a street or highway project, an alternative purchase offer may be made to the property owner. The condemning authority may offer 130% of the appraised value plus payment to the owner of certain expenses (recording fees, transfer taxes, and similar expenses incidental to conveying the real property to the acquiring agency, and penalty costs for full or partial prepayment of any preexisting recorded mortgage entered into in good faith encumbering the real property). If the property owner accepts this offer, they are barred from claiming payment from the condemning authority for any other expenses allowed by the law. (IOWA CODE § 6B.2B

After the condemning authority makes an offer, the property owner's attorney will evaluate the appraisal and offer to determine if it represents just compensation. If the attorney finds errors in the condeming authority's valuation, then they will determine how best to proceed.

The attorney will need to assess all damages that were not included in the condeming authority's valuation and determine the full amount of compensation owed to the property owner.  The attorney will then determine how best to present this information to the condeming authority during the negotiation phase.

Having an appraisal which accurately addresses all damages and indirect damages is one of the most important factors in any eminent domain case. Oftentimes, the appraisal used by the condemning authority contains errors, thus leading to a lower offer of compensation for the property owner. Because of this, having a second appraisal conducted on the property can be a necessary step.

Before taking this step on your own, it is highly recommended to consult with an eminent domain attorney. An eminent domain attorney will thoroughly review the initial appraisal and determine its strengths and weaknesses. Based on this information, the attorney will indicate a selection for the most qualified appraiser to value the condemned property in question, and determine the damages to any remaining parcel. Also, the attorney can work directly with the appraiser to make sure all conflicting issues are addressed. Remember, selecting an unqualified appraiser may negatively impact the amount of compensation the property owner is owed.

If the property owner signs the final settlement papers, they waive their right to pursue additional damages and the case is complete.  The property owner should only settle with the government if they are satisfied with the amount of compensation offered by the condemning authority.

Once the final settlement papers are executed by the property owner, the deed is transferred to the condemning authority.  It is at this time that ownership is transferred from the property owner to the condeming authority.

The owner is paid in full, the condeming authority owns the property, and the owner's case is completely done. The property owner can no longer file a claim to challenge the taking or to receive additional compensation.

If, after negotiations, the property owner is not satisfied with the amount offered by the condeming authority, they can refuse the offer and allow condemnation to occur.

If negotiations can not be reached, the condemning authority will submit a written application for condemnation to the chief judge of the judicial district in the county in which the property is located. In the application, the condemning authority will request for the appointment of a commission to appraise the damages in the proceeding. (IOWA CODE § 6B.3)

Once the application has been published or served to the property owner(s) and approved by the chief judge, it will be filed with the recorder of deeds. Once filed, several things occur: 1: the condemning authority has the right to acquire the property and condemnation is pending; and 2: the commissioners' appraisement of damages must be submitted with in 120 days or else the condemnation application is null and void; in which case, the condemning authority must submit a new application. (IOWA CODE § 6B.3)

To determine just compensation, the county board will appoint at minimum, 28 possible commissioners, who are residents of the county. One-fourth of the persons appointed must be owner-operators of agricultural property, one-fourth of the persons appointed must be owners of city property, one-fourth must be licensed real estate salespersons or real estate brokers, and one-fourth must be persons having knowledge of property values in the county by reason of their occupation. (IOWA CODE § 6B.4)

The chief judge of the judicial district or the chief judge's designee shall select six people from the list to determine compensation; two of which are owner-operators of agricultural property when the property sought to be condemned is agricultural land; two persons who are owners of city property when the property sought to be condemned is anything other than agricultural land; and two persons from each of the remaining two representative groups. (IOWA CODE § 6B.4)

The commissioners will view the property sought to be condemned to assess the damages, and create a written report that is delivered to the sheriff. The sheriff will then report in writing to both parties via ordinary mail the amount of the commissioners appraisement, and that any party may, with in 30 days, appeal the commissioners' appraisement to the district court of the county in which the property is located and by giving written notice to the sheriff that the appeal has been taken. (IOWA CODE § 6B.18(1))

If the property owner is satisfied with the amount of just compensation determined by the commissioners, then they may accept this offer.  Once this offer is accpeted, their case is done.  Because of this, the property owner should not accept this offer if they are not satisfied; they may still appeal this award.

Within 30 days of the mailing of the appraisement of damages, either party may appeal the award. (IOWA CODE § 6B.18(1))

After the commissioners' award has been filed, the condemning authority may deposit the amount with the sheriff and take full possession of the property. The award must be paid in full before the government may take possession of the property. (IOWA CODE § 6B.25)

An appeal from the commissioners' award is tried as an action by ordinary proceedings. In ordinary proceedings for a simple money judgment, the right to trial by jury is guaranteed. (IOWA CODE § 6B.21) Additionally, see IOWA R. CIV. P. 611.6; IOWA CONST. ART. I, § 9; Gardner v. Kerlin, 169 N.W. 177, 177 (Iowa 1917)