Certified Residential Appraiser Practice Exam

What is the concept that allows the government to acquire private property for public use?

1. Eminent Domain

2. Condemnation

3. Property Entitlement

4. Public Benefit

The correct answer is: Eminent Domain

Eminent domain is the legal concept that allows the government to acquire private property for public use, provided that the property owner is compensated fairly. This principle is rooted in the Fifth Amendment of the U.S. Constitution, which states that private property cannot be taken for public use without just compensation. The justification for this right is that it enables the government to pursue projects that serve the public interest, such as building roads, schools, or parks, which ultimately benefit the community at large. While condemnation is a related process through which the government formally exercises its power of eminent domain, the term “eminent domain” specifically refers to the overarching legal authority. Property entitlement refers to the rights individuals have over their property and is not directly related to the government’s power to acquire land. Public benefit is a broader term that may describe the positive outcomes of government projects, but it does not capture the legal mechanism for property acquisition itself. Thus, eminent domain best encapsulates the concept in question.