Inverse Condemnation Appraisals


Typical condemnation appraisals are completed when governments and public utility companies take / acquire real property for a public use.  A strict condemnation process is usually established for taking easements / rights-of-way / fee interests in real property.  At times a power line or roadway "corridor" is established well in advance of the actual acquisition, and at times multiple right-of-way "options" may have been considered or studied with public feedback heard regarding each.


Even though a corridor or a right-of-way acquisition plan may be selected by a public utility or government agency, that does not mean that they have the funding to actually construct the project.  Owners are at time faced with being in the path of a future roadway, power line or widening project months or years before it actually happens.  Since the public is usually provided with information on the planned project, they can begin to react of the expectation that the taking will occur.  Owners can have problems retaining tenants or they can decide not to invest in their property in anticipation of the acquisition.  At times, properties can be negatively affected by corridor plans themselves or due to changes made for planned projects or projects under development. 


Inverse condemnations are often claimed by owners who believe that all or part of their property has been effectively taken even though it has not been formally condemned.  Factual evidence is generally the best evidence of a taking.  An inverse condemnation must be claimed via a law suit filed against the government or public utility, thus an attorney who specializes in the condemnation area is important.


Inverse condemnations are generally just as complex for an appraiser as direct condemnations, and at times the problems related to them are even more difficult to resolve.


Appraisers generally become involved in inverse condemnation cases by being contracted by an attorney to provide an appraisal report.  The Court makes a determination regarding whether an inverse condemnation or inverse taking has occurred, and if a taking occurred an appraiser can determine what the fair market value of the taking was and if there was any impact to the remainder.        


Condemnation appraisal and inverse condemnation appraisal are again, specialized areas within the appraisal profession, and few appraisers have had a great deal of experience in it.  Horizon Village Realty & Appraisal has many years of appraisal experience working for both client land owners and the government / public utility companies in this area.  Contact us with your questions or regarding condemnation appraisal assignments in Nevada at 1-702-568-6699. 





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Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.