Eminent Domain (Real Estate Analysis) - Research Paper Example

Eminent Domain: Real E Analysis Introduction This paper focuses on eminent Domain, which is the supremacy of the government to secure private property for public use even without the approval of the owner. The power of eminent domain enables the government acquire property without fear of strategic holdout. Private parties rarely make use of eminent domain since they can acquire property through secret agents. However, most real estate development projects involve use of eminent domain as the developers acquire property for purposes such as rehabilitation, new developments, or for expansion of existing projects.

In most cases use of eminent domain by real estate developers results in disputes and court proceedings referred to as condemnation proceedings. Additionally, use of eminent domain by private agents can result in increased corruption since the agents can use the process to enable them pay less for property. In some cases, government official have been involved in corruption whereby they have used eminent domain to acquire private property and later sold it to private developers. The power of eminent domain is restrained by public clause of Fifth Amendment, which requires that the government provide adequate evidence for the acquisition in addition to just compensation before seizing private property for public use (Aycock and Black 53-54).

Initially, the eminent domain was used to obtain private properties for public uses such as schools, roads, and parks. However, the eminent domain has been expanded and is often used to include other project meant to benefit the public. Real estate agents are thus able to employ the power of eminent domain when they want to acquire property for purposes such as urban renewal projects. Several real estate agents help in fostering development, which is crucial for economic growth. They are thus empowered by eminent domain to acquire property for commercial development (Aycock and Black 53-55).

There are many questions regarding the legitimacy of eminent domain especially when it is used to acquire property for private developers such as real estate agents. Although the government is required to provide evidence that the project is for public benefit, there are question on how some real estate projects benefit the public. Additionally, ways of calculating of the just compensation is questionable. Therefore, it is important that the government exercise eminent domain carefully since it affect the constitutional rights of the property owners (Cook Web).

Transfer of property land to real estate agents entails transfer of property from one private owner to another private owner. There is need for courts to define when it is appropriate for eminent domain to be applied especially if the property is being transferred to private owners. Transfer of property from one private party to another has at times resulted in chaos. Real estate acquisitions should be done without partiality since they entail transfer of property from one private party to another.

There have been cases where real estate agents have abused the eminent domain. This happens when the property acquired through eminent domain fails to benefit the public (Carpenter and Ross 337-342).There are question on whether real estate developers should use eminent domain. This is because the constitution only provides that the property to be acquired be of public benefit. Use of eminent domain by real estate developers often results in ligations since some developers acquire property and use for personal gain.

Additionally, most real estate developers who use the eminent domain do so because they are incapable of purchasing the property. This often results in under compensation of the property owners. However, Eminent domain benefits real estate agents since they are able to acquire property from owners who may be unwilling to negotiate for rational compensation (Kelly Web).Conclusively, it is important that a lot of care be taken when using eminent domain to acquire property for private developers such as real estate agents.

This is because some developers use the power of eminent domain to acquire property for personal gain. Additionally, the constitution fails to define what acquisition of property for public benefit entails. This results in abuse of eminent domain.Works CitedAycock, Alan and Roy Black. "Special Master Bias in Eminent Domain Cases." Real Estate Issues, Vol 33, No. 2 (2008): 53-58.Carpenter, Dick and John Ross. "Do Restrictions on Eminent Domain Harm Economic Development?" Sage Journals (2010): 337-351.

6 nNov 2012.Cook, Steve. Real Estate Eminent Domain is Alive and Well. 21 Jan 2010. Web. . 6 Nov 2012.Kelly, Daniel. The “Public Use” Requirement In Eminent Domain Law: A Rationale Based On Secret Purchases And Private Influence. July 2005. Web. . 6 Nov 2012.