Just Compensation, Claims for Lost Business Profits and Income Valuation of Real Property

• Autorzy: Charles Szypszak
• Języki publikacji: EN

Abstrakty

EN

Owners whose property is taken by government for public use are entitled to be paid just compensation, as constitutionally required and as a fundamental principle within a rule of law. Usually the amount of just compensation is based on the fair market value of real estate taken as determined by a comparative market analysis. However, when the real estate is used for a commercial business, an eminent domain taking may cause the business activities on the property to terminate, relocate, or be restricted, and the owner may expect that just compensation should include anticipated loss of future business profits. In the U.S.A., a few states have enacted statutes that require at least some part of estimated lost future business profits to be paid. But according to the law in most jurisdictions, such payment is not required. This surprises many business owners, but the legislatures and courts have resisted calls to expand eminent domain compensation to include business profits for a number of reasons, including the speculative nature of future profits, the difficulty of quantifying them, and practical concerns about unpredictably large compensation awards. On the other hand, courts allow use of business income data to consider the value of real estate. With the "income approach" for property appraisal, the amount a reasonable purchaser is anticipated to pay-fair market value-is based on rents or other income, minus maintenance and operating costs. Government entities, owners, and courts struggle with the distinctions between improper inclusion of future business profits and proper consideration of the real estate's income. (original abstract)

Słowa kluczowe

EN

Real estate valuation; Expropriation; Compensation

PL

Wycena nieruchomości; Wywłaszczenie; Odszkodowania

• Czasopismo: Studia i Materiały Towarzystwa Naukowego Nieruchomości
• Rocznik: 2010
• Tom: Some Aspects of Compulsory Purchase of Land for Public Purposes
• Strony: 81--91

Twórcy

autor

Charles Szypszak

• University of North Carolina at Chapel Hill, USA