Transcription of the Video:
Hello, everyone. We’re continuing our discussion about severance damages and the concept I’d like to discuss at this time is really a strategy concept addressed to individuals who have a remainder parcel that for whatever reason, they just simply do not want to own any more after the taking has occurred and the project is developed. I frequently get questions or inquiries by property owners who are very frustrated because they cannot get the condemning authority to buy the remainder property from them. And under eminent domain, we have to remember that under the necessity rule, the condemning authority is only required or can only actually take the property that is absolutely necessary for the project.
Any additional land that might be outside of that which is actually necessary will only be acquired if there is an agreement between both the condemning authority and the property owner. And so many times, property owners just don’t want to be there anymore, and a good example is a homeowner… who lived or whose home was located in a nice, quiet countryside, setting in now because this new highway is coming in, taking part of the property is going to be creating such a noisy environment that is no longer going to be desirable for this person to continue to live in this home… and they feel very frustrated that they can’t sell this property to condemning authorities. They won’t buy it in that situation. There’s a strategy consideration to be factored in in terms of how that property owner moves forward. If a property owner in that situation simply does not want to live or stay or continue to own the property that is left the remainder parcel, I say the thing you should do is sell it as soon after as you possibly can, as soon after the taking has been official. You want to list that property with a broker and have it marketed out in the marketplace and sold within whatever is a reasonable marketing time, because what that will do, it will establish the after value of the remainder parcel. And there is a rule of law that says that a recent sale of the subject property close in time to its valuation date is the best evidence of its market value. So, when the condemning authority made their offer or made their award to the property owner, the property owner may very well feel that the after value that the condemning authority to determine for the remainder parcel was way too high and that may be true. And if that property owner does no, no longer wants to continue to own or live at that property, the best thing then to establish what that happened after value is, is to sell the property. Now, I never recommend anyone to sell the property… sell remained your property as a strategy for determining your eminent domain damages in a particular case, however if an owner who is left with a reminder that they simply. Cannot continue to own for whatever reason, then I tell them as soon after that, that acquisition has been finalized and it occurred then move to take advantage of that rule of law that I mentioned earlier and sell the property so that you can take advantage of the project to establish what this after value is.
It sometimes seems counterintuitive, but it’s a strategy that I have indicated to several owners over the years, and they have used it, used it very effectively to enhance and maximize the amount of recovery for just compensation in their particular case.
You will want to consult with an attorney before decide to move forward with this strategy.
Questions about Selling the Remainder Parcel or if you’re interested in a free consultation, contact us today! If you want to call us, our main number is 866-339-7242. We look forward to hearing from you.