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Partial takings in North Carolina

The commonest pattern, and the measure that makes North Carolina unusually favourable to owners.

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Most North Carolina condemnations do not take a whole property. They take a strip of frontage, a corner, or a corridor across the middle, and leave the owner with the rest. That remainder is where the money usually is.

North Carolina handles this with a measure that gives the owner a choice of calculations rather than a single figure, and understanding it is the single most useful thing an owner in this position can do.

The greater of two figures. Section 40A-64 sets compensation for a partial taking as the greater of the amount by which the fair market value of the entire tract immediately before the taking exceeds the fair market value of the remainder immediately after the taking, or the fair market value of the property taken.

The short answer

Two calculations must be run and you are entitled to whichever is larger. An appraisal that only values the strip has answered the easier half of the question.

What the remainder analysis has to capture

How the calculation runs

1

Value the entire tract before the taking

The whole property as it stood, at its highest and best use.

2

Identify precisely what is acquired

Area, interest and location within the parcel.

3

Value the property taken on its own

The first of the two statutory figures.

4

Value the remainder after the taking

The land you keep, with the take made and the project built.

5

Subtract to find the before and after difference

The second statutory figure.

6

Compare the two

Section 40A-64 entitles you to the greater.

7

For Department of Transportation cases

Section 136-112 applies instead, working on the difference between the value of the entire tract before the taking and its value afterwards.

Why the remainder is usually the larger number

Shape and usability

A parcel left long and narrow, or cut into awkward pieces, may not support what the whole once did.

Access

The remainder may be harder to enter, exit or move around.

Setbacks and buildable area

Losing a strip can push a building envelope below what regulations allow.

Proximity to the project

Land now adjoining a road, line or facility is not the land it was.

Severance

A corridor that divides a holding can strand the far side entirely.

Cure assumptions

Appraisals sometimes assume a fix. Test whether the fix is practical and whether its cost was counted.

Related resources

Frequently asked questions

What exactly does section 40A-64 give me?

The greater of two figures: the reduction in the fair market value of the entire tract measured before and after the taking, or the fair market value of the property taken.

Does the same rule apply to highway takings?

Department of Transportation cases run under Chapter 136, where section 136-112 sets the measure of damages, working on the value of the entire tract before the taking against its value afterwards.

The take is tiny. Should I bother?

Small takes in poor positions frequently produce the largest proportionate damage to the remainder. Size of the strip is a weak guide to the size of the claim.

What if the appraisal shows no damage to the remainder?

Ask how the remainder was valued and what it assumed about access, shape and use. That is where the disagreement will be.

Understand your property situation before the next step

Explore North Carolina resources matched to your property, the project affecting it, and the stage you have reached.

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