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Think Eminent Domain Doesn't Apply in a Closing? Think Again

Real Estate Issues

  • May 28, 2019

Christian Torgrimson wrote a cover story in Real Estate Issues on the importance of factoring eminent domain into real estate closings. 

"From title reports to tax assessments and surveys, due diligence checklists provide a comprehensive way to ensure that all the complex and various demands and risks of a commercial real estate transaction are discovered and addressed on the front end to ensure no issues arise on the back end," Christian wrote. "Most transactions, however, typically overlook one important contingency – public projects."

"Valuable commercial real estate in a busy market can attract the need for roads and infrastructure," she continued. "The government’s exercise of eminent domain for a public infrastructure project can affect any commercial or residential property in a project corridor at any time, but it rarely comes to mind in real estate transactions. The failure to investigate current pending or even future potential public projects that may impact the transaction or use of the property being sold could leave buyers and sellers with their money and investments at risk."

Christian then provided a brief overview of eminent domain laws and explained how to reduce the risk of the unknown with public projects. 

You can read the cover story here. Real Estate Issues is the biweekly journal of the Counselors of Real Estate (CRE), which is an international organization of high-profile property professionals.