The rule that real property is valued at its highest and best use free and clear of leases, mortgages or other encumbrances regardless of actual use is so fundamental that almost every eminent domain decision begins with a recitation of it. Firstly, the act of condemnation extinguishes any interest on the property. In 1931, the Court of Appeals wrote, In Matter of City of New York (Allen Street), “the City pays for what it takes and nothing else. By such taking it extinguishes all existing rights and interests in the property taken.” … read more
May 2, 2013