The government must provide compensation to a business if it is removing that business from the property. This is stated under the Fifth Amendment of the United States Constitution. However, the wording is a bit different when you see it on official documents. The wording is likely to say that you will be provided “just compensation.” This is because there are a wide variety of factors that can affect how much compensation you really receive. Many business owners will bring on an attorney who is experienced in eminent domain to handle the various legal challenges that may occur in terms of property value.
How can eminent domain affect your business?
The way eminent domain affects a business depends entirely on a number of factors. Not all business owners will be in the same situation, but the following includes a list of ways that eminent domain can affect companies:
- The need to take out a mortgage loan in a new location
- Less customer traffic
- Increased shipping rates due to new distance
- Losing the company’s largest asset
If you are facing an eminent domain process, there are some legal routes you can take to protect your business. It may be beneficial to bring on a legal team to help you receive the compensation you deserve.