What Are Severance Damages?
Severance damages are a critical component of value calculations that come into play during condemnation proceedings. These damages represent the compensation awarded to a landowner not just for the part of the land taken, but also for the decreased value of the remaining land.
Why Are Severance Damages Important?
When a portion of a property is taken for public use, the remaining property might be adversely affected. Severance damages address this loss, ensuring that landowners are fully compensated.
Real-World Example
Let’s consider a real-life scenario:
Case Example
The state highway department needed a strip of land 100 feet wide from the middle of Sarah’s farm. They agreed to pay $1,200 per acre for the land they took. Additionally, they provided $20,000 as severance damages for the inconvenience it caused Sarah in reaching parts of her farm now divided by the highway. These damages helped cover her costs and inconveniences related to relocating her farming activities around the new highway.
How Are Severance Damages Calculated?
The exact amount awarded for severance damages can vary depending on various factors:
- Loss of Access: If the remaining property loses its direct access to important roads or utilities.
- Reduced Property Value: Reduction in the market value of the remaining part of the property due to its new shape, size, or use restrictions.
- Inconveniences: Practical hardships caused to the owner due to altered geography or access, as in Sarah’s aforementioned case.
Frequently Asked Questions
Q: Can I negotiate the amount offered for severance damages?
A: Yes, the amount offered for severance damages is often negotiable. Understanding your rights and consulting with a knowledgeable attorney or an expert appraiser can help you achieve a fair compensation.
Q: Are severance damages taxable?
A: Generally, severance damages are considered part of the compensation for the property taken and can be subject to taxation. Consult a tax advisor for specific tax implications.
Q: What documentation is required to claim severance damages?
A: Detailed documentation regarding the property, its uses, access, and any impacts of the condemnation is essential for accurately assessing damages.
Conclusion
It’s vital to understand the importance of severance damages if you are facing a condemnation process. These damages ensure you are compensated not only for the taken property but also for the reduced utility and value of what remains. Knowing your rights can make a significant difference in negotiations.
Remember, professional advice from legal and real estate experts can safeguard your interests and help you get the compensation you deserve.
Related Terms: Indirect Damages, Larger Parcel, Condemnation.
