What is "inverse condemnation"?

Inverse condemnation refers to a situation where a property owner seeks compensation for damage or a decrease in property value caused by government actions. This term is typically used in the context of situations where the government has effectively taken over or devalued private property through actions such as public construction projects, zoning changes, or regulatory changes that impact the use or value of the property.

In cases of inverse condemnation, the property owner may file a claim against the government to recover losses incurred due to these actions, despite the government not formally exercising eminent domain, which is the legal process where the government takes private property for public use with compensation. The essence of inverse condemnation is the push for the government to acknowledge and compensate for the economic loss caused by its activities, which can be an important legal avenue for property owners seeking justice when their property rights are affected.

The other choices do not accurately represent the concept of inverse condemnation. For instance, the first choice relates to buyer-seller disputes and does not involve governmental action, while the third option pertains to personal property, which is separate from real property issues concerning inverse condemnation. Lastly, the fourth option addresses tax liabilities, which do not connect with the compensation sought by property owners in the context of government actions that impact property value