Condemnation

AAA

DEFINITION of 'Condemnation'

The seizure of a property by a public authority for a public purpose. Condemnation often occurs when a taxpayer owns property or real estate in a place that has been designated for public use or construction. Condemnation is exercised by public authorities through the power of eminent domain.

INVESTOPEDIA EXPLAINS 'Condemnation'

Condemned property must be appraised by the condemning governmental authority. The owner of the property is then offered the appraised value for the property seized. This offer is called a pro tanto award. The owner can decline the award and hire a lawyer if the owner feels the pro tanto award is insufficient.

Condemnations can be used to make way for private projects as well as public ones, if the public authority believes the project will serve the public good.

RELATED TERMS
  1. Environmental Tariff

    A tax placed on products being imported to or exported from countries ...
  2. Just Compensation

    Compensation provided to an owner whose private real property ...
  3. Nationalization

    Refers to the process of a government taking control of a company ...
  4. Property

    1. Anything over which a person or business has legal title. ...
  5. Eminent Domain

    The power the government has to obtain the property of an individual ...
  6. Personal Property

    A type of property which, in its most general definition, can ...
Related Articles
  1. Attention Home Buyers! Why You Need ...
    Home & Auto

    Attention Home Buyers! Why You Need ...

  2. A Tax Primer For Homeowners
    Taxes

    A Tax Primer For Homeowners

  3. Simple Ways To Invest In Real Estate
    Home & Auto

    Simple Ways To Invest In Real Estate

  4. Avoid Capital Gains Tax On Your Home ...
    Taxes

    Avoid Capital Gains Tax On Your Home ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center