Property Ownership

Under NC eminent domain law, the government must pay 'just compensation' to a property owner which is defined as:

AThe original purchase price of the property
BThe county's assessed tax value
CThe property's fair market value✓ Correct
DThe replacement cost of new construction

Explanation

The Fifth Amendment and NC Constitution require the government to pay 'just compensation' when exercising eminent domain. NC courts have interpreted this to mean fair market value — what a willing buyer would pay a willing seller in an arm's-length transaction.

Related North Carolina Property Ownership Questions

Practice More North Carolina Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free North Carolina Quiz →