What is inverse condemnation?

Inverse condemnation refers to a legal action taken by a property owner against a government entity when the government’s actions have effectively taken or diminished the value of the owner's property, even though no formal condemnation proceedings have taken place. This situation typically arises when the government uses its power to regulate land use or conducts activities such as construction that significantly affect private property.

The essence of inverse condemnation is that it is the property owner seeking justice and compensation for the loss they have suffered due to governmental actions. This distinction is crucial—it’s not the government attempting to acquire land but rather the property owner asserting their rights after experiencing a loss.

In contrast, the other options pertain to different legal scenarios that do not capture this unique situation where a property owner proactively seeks compensation for governmental interference with their property rights. Understanding this concept is important for real estate professionals navigating interactions with government entities and property rights.