Temporary taking: Overview, definition, and example
What is temporary taking?
Temporary taking refers to a situation where the government or another authorized entity temporarily seizes private property for public use. Unlike permanent taking, where property is permanently acquired, temporary taking only restricts the owner’s use for a limited period. Property owners may be entitled to compensation for the duration of the temporary taking, especially if it causes financial loss or disruption.
For example, if a city government needs to use private land to store construction materials while repairing a highway, it may invoke temporary taking for a set period. Once the project is completed, the land is returned to the owner.
Why is temporary taking important?
Temporary taking is important because it balances public infrastructure needs with property rights. It ensures that governments can complete essential projects while providing fair compensation to property owners who are temporarily deprived of their property’s use.
For SMBs, temporary taking can impact business operations, especially if a commercial property is affected. Understanding rights and compensation options can help businesses plan for disruptions and negotiate fair terms when the government or a public entity imposes a temporary taking.
Understanding temporary taking through an example
Imagine a small café operating on a busy street. The local government needs to expand the sidewalk and temporarily takes part of the café’s outdoor seating area for six months. During this period, the café loses seating space and some revenue. The owner is entitled to compensation for lost business income due to the temporary taking.
In another case, a trucking company leases land for vehicle parking. A state transportation agency temporarily takes the land to store roadwork equipment. The trucking company must relocate operations for the duration of the project but receives financial compensation for the inconvenience and added costs.
An example of a temporary taking clause
Here’s how a temporary taking clause might appear in a contract:
“If any portion of the Premises is subject to a temporary taking by any governmental authority for public use, the Tenant shall be entitled to a proportionate reduction in rent for the period of such taking. The Landlord shall not be liable for any additional compensation beyond what is provided by the governmental authority.”
Conclusion
Temporary taking allows governments to use private property for public projects while ensuring fair compensation for affected property owners. For SMBs, temporary taking can cause disruptions to business operations, making it essential to understand compensation rights and legal protections. Negotiating clear terms in leases and contracts can help businesses manage the impact of temporary takings and recover financial losses.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.