Property Transactions

Question 1

Governmental bodies have the power to acquire property for _____ ___ – both within and outside the corporate limits – by purchase, gift, lease, bequest, or condemnation.

Answer 1

public use

Question 2

A governmental body (and some utilities authorized by specific statute) may exercise the power of eminent domain (condemnation) and by proper proceeding may condemn any land, building, or personal property including any interest of any individual or corporation whenever:

Answer 2

1. There exists a public need, which must be declared in the resolution or ordinance directing the condemnation; and
2. The “condemnor,” (i.e. the government), having made a reasonable request, cannot agree with the owner as to the compensation to be paid to the owner.

Question 3

the General Assembly has limited condemnation to projects qualifying as “public uses,” and has defined these narrowly to include only:

Answer 3

1. use by the public;
2. public facilities like airports, libraries or jails;
3. use by a utility or railroad;
4. to eliminate a specific “blighted” property that has become a public safety danger; or
5. where an owner of property in a redevelopment or conservation area agrees to such acquisition.

Question 4

The condemnor has the burden to show that the planned use is ______ under these standards.

Answer 4

public; there is no presumption that the purpose is public.

Question 5

Under Virginia law, no more property may be taken than the amount…

Answer 5

actually necessary to achieve the public purpose.

Question 6

Except where property is taken for use by a utility company or a railroad right-of-way, or for a public water, sewer or transportation project, the following factors must be met:

Answer 6

1. The public interest must “predominate” over any private gain,
2. The primary purpose cannot be private financial gain, or to aid “private enterprise” or to create any other private benefit, and
3. the primary purpose also cannot be to create an increase in the tax base or tax revenues for the governmental body, to create more jobs for local residents, or for “economic development” of the locality generally. For example, condemning farm land to create a “business park” where private companies could grow, employing local residents and increasing local tax revenues, is not permissible.

Question 7

When a locality acts to eliminate a “public nuisance” (dangerous condition) by requiring that a structure be demolished it (is/ is not) “taking” property under these provisions.

Answer 7

Is not; No compensation to the owner is required in that situation.

Question 8

If no agreement is reached after the condemnor’s “good faith offer to purchase” the property, a court proceeding to acquire property must be brought in…

Answer 8

the circuit court where it is located.

Question 9

The measure of recovery is the ____________________ of the property taken (including rental revenue it generated).

Answer 9

fair market value

Question 10

The Virginia Constitution holds that just compensation also includes…

Answer 10

lost access (loss in value of remaining, untaken property) and lost profits for up to 3 years

Question 11

Caselaw has also held that if the condemnation causes the landowner to lose “development rights” that would have been available for the larger parcel before condemnation (is/ is not) a compensable element of damages as well.

Answer 11

is

Question 12

Where it is alleged that taking some of a landowner’s property has caused damage to the remaining property of that owner, called residue, the test is what its fair market value of…

Answer 12

the remaining land was the day before “the take” compared to the day after, considering the uses to which it reasonably would be put.

Question 13

The factfinders in condemnation case can be called _________________________ and are selected like civil jurors.

Answer 13

jurors or commissioners

Question 14

When property is taken indirectly (such as damaging it, or rendering it less useful), without formal condemnation, a property owner may institute what is called an ___________ ______________________ claim by filing a proceeding to obtain a declaratory judgment or damages.

Answer 14

inverse condemnation

Question 15

Inverse condemnation claims are based on…

Answer 15

the Fifth Amendment’s “takings” clause prohibiting taking of private property without just compensation, and a parallel Virginia Constitution provision to the same effect.

Question 16

There is no ________________ against inverse condemnation claims, which are seen as actions upon an “implied contract” with the citizen.

Answer 16

sovereign immunity; These claims have constitutional underpinnings and are expressly allowed by a statute in Virginia.

Question 17

Municipalities may obtain title to property through adverse possession by showing…

Answer 17

an adverse holding that is hostile, actual, open, notorious, exclusive, and continuous. (but caselaw suggests private citizens may not adversely possess government property)

Question 18

A municipal corporation has the right to sell or lease public property. Sale of land must be based on an ordinance or resolution passed by ________________ of the governing body of the municipality.

Answer 18

3/4 majority

Question 19

Leases of real property by a municipal entity are limited to a term of…

Answer 19

40 years.