Understanding South Carolina's Precondemnation Process:
The Offer and Appraisal Requirements
Before a condemning authority in South Carolina can file a condemnation lawsuit to take private property through the power of eminent domain, state law requires the authority to follow specific pre-condemnation procedures. These statutory requirements are designed to protect property owners and ensure they receive fair notice and a reasonable opportunity to negotiate before litigation begins. Understanding these requirements is essential for any landowner facing a potential condemnation.
The Statutory Appraisal Requirement
Under South Carolina Code Section 28-2-70, before initiating condemnation proceedings, the condemning authority must have the property appraised by a qualified, disinterested appraiser. This appraisal establishes the authority's estimate of just compensation—the fair market value of the property interest being taken. The appraisal must be conducted according to professional appraisal standards and must consider factors such as the property's highest and best use, comparable sales, and any damages to remaining property if only a portion is being taken.
The Written Offer to Purchase
After obtaining the appraisal, Section 28-2-70 requires the condemning authority to make a written offer to the landowner to purchase the property. This offer must be based on the appraisal and must be presented to the property owner before any condemnation action is initiated. The offer represents the authority's good faith attempt to acquire the property through voluntary negotiation rather than forced litigation.
The written offer must provide sufficient detail for the property owner to understand what property interests are being acquired, what compensation is being offered, and the basis for that compensation. Property owners should carefully review the offer and the authority’s supporting appraisal, as this represents a critical juncture where negotiation is still possible.
The Owner's Right to Reject the Offer
A property owner is under no obligation to accept the condemning authority's offer. If the owner believes the offered compensation is inadequate—whether because the appraisal undervalues the property, fails to account for project impacts and damages, or miscalculates highest and best use—the owner has every right to reject the offer and require the authority to proceed through formal condemnation proceedings.
Once the offer is rejected, the condemning authority may file a condemnation action in circuit court. At that point, the question of just compensation will be determined either by a jury or, rarely, at the condemnor’s election, by a panel of three disinterested freeholders.
Good Faith Obligations and Consequences of Noncompliance
South Carolina courts take the pre-condemnation requirements seriously. The condemning authority must act in good faith throughout the process—conducting a proper appraisal, making a reasonable offer, and providing the owner with meaningful opportunity to respond. Failure to comply with these statutory requirements can have consequences for the condemning authority, including potential dismissal of the condemnation action or other remedies.
Why Legal Representation Matters from the Start
Many property owners make the mistake of waiting until after a condemnation lawsuit is filed to seek legal counsel. However, the pre-condemnation phase—when the appraisal is conducted and the offer is made—is a critical time to have experienced legal representation. An attorney knowledgeable in South Carolina eminent domain law and strategies can review the appraisal for errors or omissions, negotiate with the condemning authority on the owner's behalf, and ensure the owner's rights are protected before litigation begins.
The eminent domain attorneys at Bybee & Tibbals, LLC represent South Carolina property owners from the earliest stages of the condemnation process. If you have received an appraisal or offer from a condemning authority, or if you have questions about the pre-condemnation process, contact our firm for a consultation. Early legal involvement can make a significant difference in protecting your property rights and maximizing your recovery of just compensation.
