Certified Residential Appraiser Practice Exam

The process of eminent domain is administered through which legal procedure?

1. Condemnation

2. Expropriation

3. Foreclosure

4. Litigation

The correct answer is: Condemnation

The correct answer is condemnation because it refers to the legal process through which the government can take private property for public use, provided that just compensation is given to the property owner. This process typically involves determining the property's value and ensuring that the owner receives a fair payment, typically through an appraisal or negotiation. Condemnation is the formal procedure that initiates the taking of the property, ensuring that all legal guidelines and requirements are followed. While expropriation and litigation are related concepts, they often refer to broader contexts or different aspects of property law. Expropriation can sometimes be used interchangeably with condemnation but is more often associated with instances involving government acquisition of property in countries outside the U.S. Litigation refers to the process of taking legal action, which can occur in many contexts, but when specifically discussing the taking of private property for public use, condemnation is the precise legal procedure that applies. Foreclosure deals with situations where a lender takes possession of a property due to the borrower's failure to make mortgage payments, which is a different legal concept altogether.