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Eminent Domain - Check Is In The Mail!

By Wendy Rulnick

Real Estate Broker/Owner with Rulnick Realty, Inc.

September 22, 2009 12:12 PM

Eminent Domain

I am president of my commercial condo association in Destin Florida. My real estate office, Rulnick Realty, is in a strip mall with a variety of businesses- restaurants, jewelers, bank, boutique, flooring and more. A few days ago I got a call slip with a message from our association manager:

“Our plaza has won the lotto! Check for $30,000 received in the mail”.

What!? Huh?!! I scrambled for the phone to find out what was going on. The association manager says there was a short note from an attorney that stated, “Partial settlement from EMINENT DOMAIN lawsuit” and a check for $30,000.

I scrambled to go into public records for the Walton County Clerk of Courts. There it was, the notice of eminent domain lawsuit, dated March 2003, before the owners took over the plaza from the developer:

Eminent Domain

It seems that a public water company was condemning part of our property by eminent domain. There was a further record listed as "Stipulated Order of Taking" . It reads in part:

"The public body was exercising its delegated authority to obtain a perpetual easement and temporary construction easement for three years from the date of deposit.

Upon twice the deposit of good faith estimate, the right, title and interest shall vest to the public water company."

Further, it said the amount of $30,000 was deposited with the court in March 2003.

SO, why is my plaza getting a check six years later? How shall we contest this amount if it is not “just”? It is too late to get our own condemnation appraisal? What is our recourse? What do the Florida Eminent Domain Statutes say?

We have many questions yet unanswered. Rest assured, my research has just began, and I will post my findings here.

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

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Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.

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Sally K. & David L. Hanson

EXP Realty 414-525-0563 - Brookfield, WI

WI Real Estate Agents - Luxury - Divorce

Hmmm...there are people who earn very decent livings just from lawsuits...not me...but it would be fun to find out the check really WAS in the mail, hmmmm ?

Sep 22, 2009 12:16 PM

Lana Robbins Realtor ® Licensed Real Estate Broker

Aloha Kai Real Estate - Clearwater, FL

Licensed in Florida, Washington, and Hawai'i

Hi Wendy. That is strange. I hope you post an update about this.

Sep 22, 2009 12:27 PM

William J. Archambault, Jr.

The Real Estate Investment Institute - Houston, TX

Wendy,

I can't speak about FL law, but I recommended you get a better attorney than you had when you took over the association!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I've been on all sides of these transfers and would never have excepted control with out a title search, you could have had/have all sorts of liens and les pendens from mechanic's and material men! Not to mention people who've stubed their toe.

You must not have had any units financed because this should have shown up.

Bill

Sep 22, 2009 01:08 PM

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Sally & David - Yes, a real check showed up!

Lana - I will update.

Bill - Very interesting. There were many units financed in the plaza. I bet the individual unit's history was searched only. The association had no knowledge of this attorney, either. The story is just unfolding here....

Sep 22, 2009 01:17 PM

Kent Anderson

Coldwell Banker Resort Realty, Sandpoint, Idaho - Sandpoint, ID

from Schweitzer to the Lake

Dig in, Wendy. This will be tough but interesting fight. Keep us posted.

Sep 22, 2009 01:27 PM

Jimmy Williams

Keller Williams Elite Partners IV - Mount Dora, FL

Lake and Western Orange County Real Estate Expert!

I am a little confused???

Did the Developer has an Eminent Domain Attorney working this case???

Is there an utility easement across your property???

Sep 22, 2009 01:50 PM

Bill Gassett

RE/MAX Executive Realty - Hopkinton, MA

Metrowest Massachusetts Real Estate

Wow what an interesting story Wendy! I thought you would be going on a great vacation when I 1st started to read:)

Sep 23, 2009 12:20 AM

Kent - This is my first eminent domain situation, and I will get to the bottom of it!

Jimmy - The attorney was the original registered agent for the plaza. Apparently, there is no eminent domain attorney on the case - yet. We think there is a utility easement involved, however, the notice also references a 3-year construction easement. We have not seen any construction - but this is all dated in 2003. We are obtaining the attorney's records and starting our investigation.

Bill - I thought we could all go to the Bahamas, too! But we've put the check in a safe deposit box for now!

Sep 23, 2009 12:33 AM

Jim Valentine

RE/MAX Realty Affiliates - Gardnerville, NV

This is a very interesting title situation. Many unanswered questions - I'll be looking for more in the future.

Sep 28, 2009 01:27 AM

Christopher Horlacher

DHR, P.L. - Sarasota, FL

Esq.

I took an LLM class on Land Use while I was in law school, but I have not practiced in the area. Therefore, I am not comfortable giving any advice on your issues. However, I would like to make some suggestions. Eminent domain law can be very complex. There are attorneys and entire law firms that are dedicated to nothing else. Aside from land use and basic real estate issues, there are constitutional law issues at play. I suggest that you call one of the well known firms and speak to them on the phone. An experienced eminent domain lawyer will know right off the bat if you "have a case" or not. They have probably spent hundreds of hours researching the nuances of situations just like yours. People call me all the time to get free information, it is just part of the job. Once you get some free info from them you can make more informed decisions.

Was there any construction by the water company after deposit into the court registry? After the three years? I am guessing not, or else you would have been notified of this easement at that moment.

I wish you the best of luck in your battle.

Oct 13, 2009 11:46 PM

Hi Christopher - Thank you much for writing. We are still waiting for the attorney who originally represented the developer of the plaza to send us his file. We were going to glean info from him, as he said he was paid for his time by ? Is is the water company? He told us he is not an expert in eminent domain and seemed to recommend we get a different attorney who specializes in this field. I am dismayed that the association was never notified of this suit since we took it over from the developer three years ago. I do not know if there was construction there prior to three years ago, that is when I bought my unit. I also find that the timing of us receiving this check does not correspond to the dates in the Lis Pendens. We have decided not to cash this check as we do not know the ramifications, it is in a safe deposit box until we complete our research.

Oct 14, 2009 01:42 AM

Eminent Domain - Check Is In The Mail!

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