Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds

Eminent Domain and Condemnation

The government has the power to take our property and use it for a public use. They can take all or a portion or even be entitled to an easement such as a utility easement. Each state regulates how the government can take private property and the procedures for doing so. However, they must give the property owner notice and an opportunity to contest the matter. Here is how the condemnation process typically works.

The government sends you a notice about why they want the property and identifies the name and type of public project they want to use the property for. Once the property is appraised, the fair market value will be determined. You have the right by law to be paid justly for the property if the government takes it away from you. The government will make an offer specifying the amount they are willing to pay you for the property. You can accept their offer or sue the government and litigate the matter by taking it to court.

A friend of mine acquired a home through buying a tax deed at a local county auction on a home that was located in a redevelopment area of his town. Part of the area was still blighted, and the other part was experiencing a boom of redevelopment. My friend’s property was located on the border of the redeveloped area and that was one of the reasons why he decided to buy the tax deed, because he believed it would be a good investment. He was approached about two years later by the city, who said that they needed to take ...