Definition
Severance damages refer to the financial compensation awarded to a property owner when a portion of their property is condemned and taken for public use, often as part of an eminent domain action. These damages are intended to cover the loss in value or the inconvenience suffered by the owner due to the reduced utility or accessibility of the remaining property after part of it has been taken.
Examples
-
Highway Expansion:
Suppose a state highway department needs a 100-foot-wide strip of land from the middle of a farm for highway expansion. The department awards the farmer $1,000 per acre for the land taken and additional $15,000 in severance damages to compensate for the inconvenience of traveling from one side of the highway to the other.
-
Utility Easement:
In another instance, a utility company requires a strip of land for running power lines. The property owner is paid for the easement, and severance damages are awarded for the reduced market value of the remaining property due to the visual and practical impact of the power lines.
Frequently Asked Questions (FAQ)
1. How are severance damages calculated?
Severance damages are typically calculated based on the reduction in the market value of the remaining property or the inconvenience caused to the property owner. Appraisals and expert testimony may be used to determine the appropriate amount.
2. Can severance damages be awarded even if the remaining property is still usable?
Yes, severance damages can still be awarded if the remaining property is usable but has decreased in value or utility due to the partial taking.
3. Are severance damages the same as compensation for the land taken?
No, severance damages are separate from the compensation paid for the land taken. The payment for the land taken covers the value of the land itself, while severance damages cover additional losses or inconveniences.
4. Do severance damages apply only to residential properties?
No, severance damages can apply to all types of properties, including residential, commercial, and agricultural land.
5. Is there a standard formula for calculating severance damages?
There is no single standard formula, as each case is unique. The calculation considers the specific impact on the property’s value and usability, often requiring expert appraisal.
- Condemnation: The legal process by which a government or public utility takes private property for public use, with compensation to the owner.
- Eminent Domain: The right of a government or its agents to expropriate private property for public use, with payment of compensation.
- Compensation: Payment awarded to a property owner for the taking of their property, ensuring they are not financially disadvantaged.
- Appraisal: An expert’s evaluation of the market value of property, used to determine the amount of compensation.
- Easement: A legal right to use another’s land for a specific purpose, such as running utilities or access roads.
Online References
Suggested Books for Further Study
- “Eminent Domain: A Handbook of Condemnation Law” by William Scheiderich
- “Real Estate Principles: A Value Approach” by David C. Ling and Wayne R. Archer
- “The Law of Eminent Domain: Fifty-State Survey” by William G. Blake
- “The Appraisal of Real Estate” by Appraisal Institute
Fundamentals of Severance Damages: Real Estate Law Basics Quiz
### What are severance damages?
- [x] Compensation for loss in value or inconvenience of remaining property after a partial taking.
- [ ] Only the payment for the land taken by eminent domain.
- [ ] Fees paid to the government for property used.
- [ ] Compensation related to personal injury during property taking.
> **Explanation:** Severance damages are specifically intended to compensate for the loss in value or inconvenience of the remaining property after part of it has been taken for public use.
### Who typically awards severance damages?
- [ ] Real estate agents.
- [ ] Homeowners.
- [x] Government or public utility.
- [ ] Private lenders.
> **Explanation:** Severance damages are typically awarded by the government or public utility that has taken part of the property for public use through eminent domain.
### Are severance damages applicable in cases other than eminent domain?
- [ ] Yes, in personal injury cases.
- [x] No, severance damages are specific to property condemnation.
- [ ] Yes, in divorce settlements.
- [ ] No, they apply only to lease agreements.
> **Explanation:** Severance damages are specific to property condemnation cases, such as circumstances involving eminent domain.
### Why might severance damages be awarded even if the remaining property is still usable?
- [ ] To increase real estate taxes.
- [ ] To cover moving costs of the property owner.
- [x] Because the remaining property's value or utility has been diminished.
- [ ] To provide a consistent income to former owners.
> **Explanation:** Even if the remaining property is still usable, severance damages may be awarded if its value or utility has been diminished due to the partial taking.
### What is the main purpose of severance damages?
- [ ] To assist in relocation.
- [x] To compensate for the decreased market value or inconvenience of the remaining property.
- [ ] To avoid property disputes.
- [ ] To improve property infrastructure.
> **Explanation:** The main purpose of severance damages is to compensate for the decreased market value or inconvenience that the owner of the remaining property experiences.
### Can severance damages be awarded for inconvenience?
- [x] Yes, they can be awarded for inconvenience caused by property division.
- [ ] No, they only cover lost physical property value.
- [ ] Only if the owner proves negligence by the government.
- [ ] No, they are unrelated to inconvenience.
> **Explanation:** Severance damages can indeed be awarded to compensate for the inconvenience caused by the division of property.
### What legal process is typically associated with the awarding of severance damages?
- [x] Condemnation by eminent domain.
- [ ] Transfer of property ownership.
- [ ] Property tax assessments.
- [ ] Real estate foreclosure.
> **Explanation:** The process typically associated with severance damages is condemnation by eminent domain.
### What must be proven to justify severance damages?
- [ ] That the property was overvalued.
- [ ] That the property was mortgaged.
- [x] That the property's value or utility was reduced because of the taking.
- [ ] That the property owner was not consulted.
> **Explanation:** To justify severance damages, it must be shown that the property's value or utility was reduced due to the partial taking.
### Are severance damages included in the compensation for the land taken?
- [x] No, they are additional to the compensation for the land taken.
- [ ] Yes, they are part of the land's market value.
- [ ] No, they replace the land's compensation.
- [ ] Yes, they are deducted from the land's payment.
> **Explanation:** Severance damages are additional to the compensation for the land taken. They are separate payments intended to address additional losses or inconveniences.
### What type of expert might be engaged to assess the impact of partial property taking?
- [ ] A lawyer.
- [ ] A civil engineer.
- [x] A property appraiser.
- [ ] A real estate agent.
> **Explanation:** A property appraiser is often engaged to assess the impact of the partial taking on the remaining property's value and utility.
Thank you for exploring severance damages in the context of real estate law. Your commitment to understanding these principles is commendable!
