before-and-after rule

Before-and-After Rule

The practice of appraising a piece of real estate both before and after it is taken over by a government due to eminent domain. The before-and-after rule considers improvements (or injuries) the government makes to the property. For example, if the government tears down a condemned house to build a park, this likely will improve the property value, while the opposite is probably true if the government tears down a mansion for the same reason.
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before-and-after rule

A rule of damages holding that the measure of damage to a thing is the difference between the value before the injury and the value after the injury. In a real estate context, this often arises in a condemnation case for eminent domain purposes.The government must compensate a property owner for the value of the property taken, but must also pay damages if the remaining property has been injured because of the loss of the other piece.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.