Land Use & Zoning

Eminent domain requires the government to pay property owners:

AThe assessed value of the property
BThe replacement cost of improvements only
CJust compensation, generally interpreted as fair market value✓ Correct
DThe owner's asking price

Explanation

The Fifth Amendment (and Indiana's constitution) requires just compensation when property is taken through eminent domain. Courts generally define just compensation as fair market value — what a willing buyer would pay a willing seller.

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