Land Use & Zoning
A taking without compensation (inverse condemnation) occurs when:
AThe government physically acquires property through eminent domain
BGovernment regulations so severely restrict a property's use that it loses most of its value without formal condemnation✓ Correct
CA property owner refuses to sell to the government
DThe government rents property for temporary use
Explanation
Inverse condemnation (or regulatory taking) occurs when government regulations deprive a property of most or all its economic value without formal condemnation proceedings. The property owner can sue for just compensation as if the property had been physically taken.
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