Expropriation is when a government takes away a property owner’s legal rights to their property, often for public use. Compensation is usually given, but historically it was not. Expropriation can also occur for other things like franchise agreements or public safety.
Expropriation is the taking or depriving of a property owner of his or her legal rights to a property or some other type of property. Typically, expropriation occurs when a government confiscates a person’s land for use by the public. For example, if the government is building a highway system that runs through a person’s land, the government may decide to confiscate the land to complete the highway. In most countries, the government would give the landlord a reasonable fee to take the land. In modern times, many countries use the term expropriation interchangeably with eminent domain, expropriation, and forced takeover.
The concept of expropriation comes from Marxism, which espouses the idea that the government should be responsible for big industries and big properties. The thought process behind taking privately owned land was to promote a society with members of equal social status, by preventing a few individuals from owning all the land. According to traditional Marxist theories, expropriation was to take place without paying the owners for the confiscated land.
Even in present times, some governments pay nothing to private citizens for expropriated properties. Most governments, however, provide the landlord with a reasonable compensation for taking the landlord’s land. For example, in the United States, Canada, and France, laws require the government to pay fair compensation when it expropriates property. England, Germany and Australia also require the payment of just compensation for expropriated land.
An expropriation payment is intended to restore the owner’s health, despite the loss of his land. In some countries, the property owner has the right to seek additional compensation for the land if they believe the government has not paid a fair settlement. An administrative committee, negotiating committee, or court typically settles land payment disputes. As a general rule, countries simply confiscate property located within their borders.
In addition to building roads, government authorities often confiscate land to build schools, utilities, railways, or public buildings. While expropriation of real estate is one of the most common types of expropriation, government authorities can also confiscate other things. For example, a government may decide to confiscate a franchise agreement. Governments can also take land that poses a public danger to ensure public safety. A government can use confiscated land for itself or allow third parties to use it for public use.
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