When you think about eminent domain, you may picture the government taking an entire property for a road project or other public improvement. However, many eminent domain cases involve only part of a property. In these situations, the government takes a portion of your land while you keep the rest.
Even when the government takes only part of a property, the effects may go beyond the land itself. As a result, compensation may include what are known as severance damages.
What are severance damages?
Severance damages refer to a drop in the value of the property you keep after the government takes part of your land. In other words, compensation may cover both the value of the land taken and any loss in value to the remaining property.
California law recognizes this type of compensation. The law states that property owners may receive compensation for damage to the remaining property when the government takes part of a larger parcel through eminent domain.
For example, a government agency may take the front section of a commercial property. Even if the building stays in place, losing parking spaces, visibility or easy access may make the property less useful and less attractive to buyers.
How are severance damages calculated?
When officials take only part of a property, appraisers usually follow several steps to estimate compensation:
- Determine the value of the land taken: Calculate the fair market value of the portion the government acquires.
- Assess the remaining property: Evaluate whether the taking or the public project reduces the value of the property you keep.
- Consider any special benefits: Identify any unique benefits the project may provide to the remaining property. In some cases, those benefits may reduce severance damages, but they generally do not reduce compensation for the land taken.
Because every property is different, appraisers often look at several factors before reaching a conclusion.
How can a partial taking affect your property?
In some cases, losing a small piece of land can create larger problems for the rest of the property. Common examples include:
- Less parking space
- More difficult access
- Lower visibility from nearby roads
- Reduced usefulness for business purposes
For instance, a transportation project may take part of a business’s parking area or remove direct access from a busy street. Although the building may remain untouched, customers could find it harder to reach the business or even notice it. As a result, the property’s value may decrease even though officials took only part of the land.
Understanding the full impact of a partial taking
A partial taking may affect more than the land the government acquires. Changes to access, visibility and day to day use can also affect the value of the property that remains. Because of this, the condition and value of the remaining property often play an important role when compensation is determined.