If your home will be subject to eminent domain in the future, how can you sell it?
Question Details: My parents own their home and have no mortgage. They were informed several years ago that their township intends to redevelop their neighborhood and take their home by eminent domain. However, there is absolutely no timeline for this process. It could be another year, another decade, or never. If my parents were to unexpectedly pass away, and assuming I am the executor of their estate, what would be the next step in dealing with the property? I assume potential eminent domain seizure must be disclosed and would scare off buyers.
Yes, since this is a material, or important issue, affecting the property and known to you, you would have to disclose it--a failure to do would be fraud. As a practical matter, you'd need to reduce the cost enough to get someone to be wiling to take a chance on buying the property (after all, it may be years before development, or the town may never actually redevelop), or see if you can sell it to the town now.