severance damages

severance damages

The compensation to a property owner after the government takes some portion of real property by condemnation under its eminent domain rights and,as a result,causes a decrease in value to the remaining property.

Example: Annie's Corner Grocery received a $135,000 condemnation award when the city took one-half of the grocery's parking lot in order to expand the library, and an additional $200,000 in severance damages because the grocery store itself was now much less valuable with the smaller parking lot.

Severance Damages

Payment received because part of a property is condemned and the value of the retained part is thereby decreased.
References in periodicals archive ?
An appraiser can provide strategic advice to public agencies, explaining that using broad easement language offers the agency flexibility in constructing and operating its project, but it also will increase compensation amounts and can result in significant severance damages.
Severance damages are the amount by which the permanent easement damages the remainder of the property.
Where the property owner can substantiate severance damages, opportunities to offset basis against the retained property exist.
In addition to the $650 million for PSE s electric facility assets and real estate, the PUD s decision could force residents to pay for stranded costs, severance damages, separation costs, going concern value, financing and legal expenses and start-up costs for a new electric PUD hiring line crews, engineers and office staff; purchasing a fleet of utility vehicles; buying and setting up billing, accounting and communications systems; and so on.
Severance damages are a clear example in Louisiana where depreciation in property value is compensable.
7) If the commercial tenant is allowed to share in the compensation paid for the real estate, the tenant will typically recover the value of any lost fixtures less any salvage value as an element of severance damages.
Focusing on larger parcels, uneconomic remnants, cost to cure, and severance damages, the course discusses the qualifications, roles, and responsibilities of the review appraiser from pre- to post-appraisal activities.
It covers Section 1033, a provision that allows taxpayers to defer gain recognition on involuntary converted property, business interruption insurance, involuntary conversion examples, and reviews severance damages, separate awards, and replacement periods.
In addition to the $650 million for PSE's electric facility assets and real estate, the PUD's decision could force residents to pay for stranded costs, severance damages, separation costs, going concern value, financing and legal expenses and start-up costs for a new electric PUD - hiring line crews, engineers and office staff; purchasing a fleet of utility vehicles; buying and setting up billing, accounting and communications systems; and so on.
In many instances, when public agencies construct transit lines and develop new stations (as well as widen streets and build grade separations), they acquire portions of properties, which can result in severance damages for such factors as loss of view, increased cost of security, noise, vibration, temporary construction impacts and business disruption.
3) In the next category, severance damages and business damages may be available where less than the entire property is sought to be appropriated.
Vermont law requires that Rockingham file a petition before the Vermont Public Service Board, which will assess the amount of compensation due Green Mountain Power, including severance damages.