Which entity exercises eminent domain?

Study for the New Jersey Title Insurance Producer Exam. Study with flashcards and multiple-choice questions, each question has hints and explanations. Get ready for your exam!

Eminent domain is the power of the government to take private property for public use, provided just compensation is given to the property owner. This authority is typically exercised by various levels of government, including local, state, and federal entities. Local governments often initiate eminent domain proceedings to acquire land for public projects, such as roads, schools, parks, and other infrastructure that serve the community’s needs.

Local governments are equipped with the legislative power to implement policies that advance the public good, and eminent domain is a tool they utilize to ensure that sufficient land is available for these public purposes. While private landowners, financial institutions, and real estate developers play significant roles in land use and development, they do not possess the authority to exercise eminent domain, as this power is strictly a governmental function aimed at benefiting the public at large.

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