KomFi. Academy

Eminent domain

National Real Estate Exam glossary · Land Use Controls

Definition

The constitutional power of government to take private property for a public use upon payment of just compensation. The power is eminent domain; the legal proceeding by which it is exercised is condemnation. It is one of the four government powers (PETE) that limit private ownership.

Eminent domain in plain English

Eminent domain is the government's power to force you to sell your property when it's needed for something public, like a new highway or school — but it must pay you a fair price. You can't just refuse forever; the point is that society sometimes needs a specific piece of land, and the Constitution balances that by requiring 'just compensation.' The actual court process the government uses to take the land is called condemnation. It's a bit like a group project where the team can require you to hand over a puzzle piece everyone needs — but they have to fairly pay you for it, not just grab it.

Sign up free: all 196 National Real Estate Exam terms as flashcards, plus practice questions with full explanations →

Related National Real Estate Exam terms

National Real Estate Exam practice questions · National Real Estate Exam flashcards · National Real Estate Exam study guide