Condemnation
N.J.S. 20:3-1 to 20:3-50: Eminent Domain Act of 1971
Eminent Domain is the government's right or power to take private property for its own use. The state or Federal government can only condemn or take a person's property if it is for a use that benefits the public, such as widening a roadway.
A property owner is entitled to receive "just compensation" for the loss from Eminent Domain. If a state takes property without paying for it, the owner may be allowed to sue the government or governmental agency for compensation.
Each state has laws and procedures for the government to condemn property or take it from its owner:
- The government must negotiate fairly with the property owner.
- Generally, if the governmental agency and the property owner agree on the terms and price for the property, the sale and transfer is similar to any other real estate transaction.
- If the owner refuses to sell or a price cannot be agreed upon, there are specific guidelines for the courts to handle these disputes.
- In New Jersey, condemnation disputes are handled by the Superior Court.
Initial Procedure
If the government (called the “condemnor”), wants private property for the benefit of the public, specific procedures must be followed in New Jersey.
The state must try to negotiate a fair price for the property with the owner.
- The state must have the property appraised and notify the owner so that the owner can be present for the appraisal.
- The state must give a written offer to the property owner, at least equal to the fair market value of the property. The offer must include:
- A description of the property that the government wants to buy
- The amount it is willing to pay for the property;
- Calculation of the amount of compensation
- The state must give the property owner at least 14 days to consider the offer. After 14 days, the state may file a lawsuit.
Procedure after negotiation
If negotiations are unsuccessful, the state can file a complaint in Superior Court.
- If the state and the landowner disagree about whether the state even has eminent domain authority under the circumstances, the matter will go to trial.
- If they agree that the government has the authority to take the property, but disagree over the price, the Court may order a condemnation commission to decide the fair price.
- The condemnation commission is a panel of three commissioners from the county where the property is located.
Condemnation Hearings
The commissioners hold hearings where the owner of the property and the state appear and present witnesses and evidence.
- Within four months after being appointed by the court, the commissioners must file a determination of a fair price or “just compensation” for the property.
Just compensation includes:
- The value of the property being taken;
- Any damage to the remaining property because of the taking; and
- Any loss of income to farm land because of interference with harvesting crops.
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