Eminent Domain in Colorado: Frequently Asked Questions and Plain-Language Definitions
If you’ve received a Notice of Intent to Acquire or other communication about a public project affecting your property, the terminology can feel overwhelming. Eminent domain involves legal, engineering, and valuation concepts that most property owners do not encounter regularly.
This page answers common questions and explains frequently used terms in plain language to help Colorado property owners better understand the process and what to expect.
This article is for educational purposes only and is not to be considered legal advice.
Frequently Asked Questions (FAQ)
What is eminent domain?
Eminent domain is the legal authority that allows a government or public agency to acquire private property for a public use, provided the property owner receives just compensation as required by law.
In Colorado, eminent domain is commonly used for:
Road and highway improvements
Drainage and flood control projects
Utilities and pipelines
Trails and public facilities
Eminent domain does not mean the government can take property arbitrarily. The process is governed by statute and case law, and property owners are entitled to compensation for the property rights that are acquired, based on market value principles.
What is a Notice of Intent to Acquire?
A Notice of Intent to Acquire (NOI) is a written notice from a public agency stating that it intends to acquire property rights needed for a public project.
An NOI does not mean:
The property is already being taken
You must accept the agency’s offer
The value has been finalized
It does mean the acquisition process has begun and deadlines may apply.
Does an NOI mean they are taking my entire property?
Not necessarily. Many acquisitions involve only:
A portion of a property
A permanent easement
A temporary construction easement
Understanding exactly what rights are being acquired is critical.
Do I have to accept the agency’s offer?
No. An offer is not a requirement to sell.
Property owners generally have the right to:
Review the agency’s appraisal
Ask questions about assumptions and impacts
Obtain an independent appraisal or appraisal review
Negotiate based on supported information
Should I get my own appraisal?
In many cases, yes—especially when:
The acquisition affects how the property functions
Easements or access are involved
The remainder property may be impacted
You have questions about the agency’s valuation
Why can appraisers hired by the agency and the property owner reach different value conclusions?
Property owners are often surprised when two appraisals for the same acquisition produce different value opinions. These differences are not usually the result of advocacy or bias, but rather differences in how key appraisal issues are analyzed.
Both the agency’s appraiser and the property owner’s appraiser are required to develop an independent, unbiased opinion of value based on the facts, market evidence, and applicable standards. Appraisers do not “argue a position” or negotiate outcomes—their role is to analyze the property and estimate value as the market would.
When value opinions differ, the most common reasons include:
1) Different conclusions about highest and best use
Highest and best use is a foundational concept in appraisal. Small differences in assumptions about:
current use versus future use,
development potential, or
legal or physical constraints
can materially affect value conclusions. If appraisers start from different highest and best use assumptions, their value opinions will often diverge.
2) Different interpretations of the “larger parcel”
In partial acquisitions, appraisers must determine the larger parcel, the land that functions as a single economic unit for valuation purposes.
Differences may arise in how appraisers evaluate:
unity of use,
contiguity, or
ownership and functional integration
Larger parcel conclusions directly affect how remainder impacts, damages, and benefits are analyzed.
3) Different information available at the time of appraisal
Appraisals are based on the information available when they are prepared. Differences can result when:
project plans change,
easement limits are revised,
access or construction details become clearer, or
certain impacts were not fully identified early
Missing or evolving information can lead to different conclusions without any intent to favor one side.
4) Different market data or interpretations of market evidence
Appraisers may rely on different comparable sales, lease data, or market indicators—or may interpret the same data differently. These differences reflect professional judgment, not advocacy.
5) Clarification through the process is common
It is not unusual for appraisal conclusions to evolve as:
additional information becomes available,
assumptions are clarified, or
factual misunderstandings are resolved
Differences between appraisals often narrow once key issues are aligned and better understood.
Practical takeaway
Differences in value opinions are usually rooted in assumptions, scope, and information, not bias. The appraisal process is designed to identify, test, and resolve these differences through careful analysis, not advocacy.
Who pays for my appraisal?
In Colorado, when the value of the acquisition exceeds certain thresholds (commonly referenced as $5,000), statutes generally require the condemning authority to pay the property owner’s reasonable appraisal fees, subject to the specific facts and governing law.
When should I contact an appraiser?
Earlier than most owners expect.
Notices of Intent often include defined timelines for providing appraisal information. Appraisers who work in eminent domain frequently have full workloads, and waiting too long can limit availability. Early consultation helps clarify scope, timing, and whether an appraisal is appropriate.
Do I need an attorney?
You are not required to hire an attorney, but many property owners benefit from an early consultation with an experienced eminent domain attorney to understand:
Procedural requirements
Deadlines that affect options
How easements, access, and restoration issues are typically handled
Early guidance is often preventative rather than adversarial.
What is the “part taken”?
The part taken refers to the property rights being acquired by the agency. This may include:
Ownership of land
Permanent easement rights
Temporary easement rights
The part taken is only one component of compensation in a partial acquisition.
What are “damages to the remainder”?
In a partial acquisition, damages to the remainder are a measurable reduction in market value to the portion of the property that remains after the acquisition—if the market would recognize that impact.
Damages are not automatic and must be supported by market evidence.
Are access changes always compensable?
The short answer to this question is no.
Properties generally have a right of access to the public roadway system, but not a right to any particular level of convenience, traffic flow, or turning movement. Many access changes are considered part of roadway regulation and may not be compensable.
Whether an access change results in damages depends on the specific facts and applicable law. Working with experienced valuation and legal professionals can help you better understand compensability of different takings.
What are special benefits?
A special benefit is a project-related benefit that:
Is specific to the property, and
Is not shared generally by surrounding properties
If present, special benefits may offset damages in some cases. Special benefits tend to be rare, but in some cases can actually result in an increase to the value of the remainder property.
Plain-Language Glossary of Common Eminent Domain Terms
Fee Title (Ownership)
When the agency purchases ownership of land, just like a normal real estate transaction, the property owner no longer owns that portion of the property.
Permanent Easement
The property owner keeps ownership, but the agency gains the long-term right to use part of the property for a specific purpose (such as drainage, utilities, slope, or trails).
Temporary Construction Easement (TCE)
A short-term right allowing the agency to use part of the property during construction. After the easement expires, the area is typically restored.
Just Compensation
The amount required by law to fairly compensate a property owner for property rights acquired through eminent domain, based on market value principles.
Remainder Property
The portion of the property that remains after a partial acquisition.
Cost-to-Cure
Cost-to-cure refers to the reasonable cost to restore the utility, functionality, or marketability of a property after a partial acquisition, when restoration is feasible and supported by market evidence.
Rather than compensating an owner solely for a loss in value, cost-to-cure may be used when it is reasonable to correct or mitigate project-related impacts to the remainder property.
Examples of cost-to-cure items may include (when applicable and supported):
Reconstructing or reconfiguring driveways
Replacing fencing, gates, or walls
Restoring landscaping, trees, or irrigation systems
Re-striping or reconfiguring parking areas
Modifying circulation to restore functional access within the site
Addressing drainage issues created by the project
Replacing or relocating signage or site improvements
Making site modifications necessary to maintain safe or functional use
Cost-to-cure is not automatic and is not always appropriate. It is typically considered when:
The cure is reasonable and feasible, and
The cost of the cure does not exceed the loss in value it is intended to address.
Whether cost-to-cure is applicable depends on the specific facts of the property, the nature of the acquisition, and how the market would view the proposed restoration.
Right-of-Way Agent
The representative who communicates with property owners on behalf of the acquiring agency to negotiate acquisitions.
Valuation Date
The effective date as of which the property is valued, as defined by statute or assignment conditions.
Administrative Settlement / Incentive Payment
A payment sometimes offered by an agency to encourage timely resolution. Incentives are typically tied to deadlines and should be evaluated in context.
Final Thought
Eminent domain can feel unfamiliar and stressful, but understanding the terminology and process goes a long way toward making informed decisions. Clear information early helps property owners distinguish between:
What is being acquired?
What impacts may exist?
What issues are or are not compensable?
If you are facing a potential acquisition, taking the time to understand the process and consulting qualified valuation and legal professionals early can help you navigate it with confidence.
If you have received a Notice of Intent to Acquire property in Colorado and would like independent valuation guidance, I provide eminent domain appraisal and valuation services for residential, commercial, and agricultural properties.
Please contact us to discuss your situation and determine whether valuation support would be appropriate.
9 Things to Do After You Receive a Notice of Intent to Acquire Your Property
It All Begins Here
Receiving a Notice of Intent to Acquire from a municipality or public agency means your property is being considered for a public project such as a road improvement, drainage facility, trail, or utility installation.
While the notice can feel alarming, it is important to understand that this is the beginning of a defined process, not the end of your options. What you do early—often in the first few weeks—can affect how clearly impacts are identified and how well decisions are informed.
Below are 9 practical steps Colorado property owners should take after receiving a Notice of Intent to Acquire (NOI).
This article is for educational purposes only and should not be considered legal advice.
1) Read the notice carefully and start a project file
Do not ignore the notice
Note deadlines, meeting dates, and project numbers
Save all correspondence (emails, letters, enclosures)
Create a dedicated folder for documents and notes
Agencies begin assembling their acquisition file immediately. You should do the same.
2) Understand the timeline and act early
Most Colorado NOIs establish a defined timeline—often around 90 days from the date of the letter—for delivery of a property owner appraisal or appraisal information.
That timeline moves faster than many owners expect once you factor in:
Property inspections
Review of plans and impacts
Market research and analysis
Coordination with legal counsel
It is a good idea to ask the land agent or representative for the condemning authority for the specific date when property information and an independent appraisal must be delivered.
3) Contact an appraiser early—even if you’re unsure what you need
You do not need to decide immediately whether to commission a full appraisal. However, early contact with a qualified eminent domain appraiser can help you:
Understand what information will be needed
Identify potential issues early (easements, access, restoration, remainder impacts)
Avoid timing problems later in the process
Early consultation improves clarity and preserves options. A practical reality: Appraisers who regularly work in eminent domain often have full workloads. Waiting too long to make contact can limit availability and reduce your ability to present well-supported valuation information within required timeframes.
4) Consider an independent appraisal
An independent appraisal can help clarify:
The value of the rights being acquired
Whether remainder impacts exist
Whether the agency’s analysis is complete and well supported
In Colorado, when the value of the acquisition exceeds certain thresholds (commonly cited as $5,000), statutes generally require the condemning authority to pay the property owner’s reasonable appraisal fees, subject to the specific facts and governing law.
Do not assume valuation support is necessarily a large out-of-pocket expense.
5) Identify exactly what the agency wants to acquire
“Acquisition” does not always mean the agency is buying your entire property. Common acquisition types include:
Fee title / right-of-way acquisition: The agency purchases ownership of the land it needs.
Permanent easements: You retain ownership, but the agency gains long-term rights for a specific purpose (such as drainage, utilities, slope, or trails).
Temporary construction easements: The agency uses part of the property during construction for a limited period, after which the easement expires and the area is typically restored.
Access-related changes: The project may modify driveways or circulation.
Request a map or exhibit showing exactly what rights are being acquired.
6) Request project plans, even if they are preliminary
You cannot evaluate impacts without understanding the project.
Ask for:
Cross sections and typical sections
Drainage plans
Construction phasing and schedule
Traffic control plans
Proposed changes to grades, driveways, parking, signage, landscaping, or walls
The most meaningful impacts are often tied to design details—not just land area.
7) Document the current condition of your property
Create a baseline record before survey or construction activity begins.
Photograph and video the property
Capture landscaping, fencing, irrigation, signage, drainage, and access
Document parking, circulation, or operational features
This documentation can be critical if questions arise later.
8) Be aware of incentive payments and deadlines
Some agencies offer incentive or administrative settlement payments tied to:
Signing within a certain timeframe
Providing information by a deadline
Avoiding escalation in the process
Incentives should be evaluated carefully and in context—not viewed in isolation. Early engagement of an appraiser can help to determine if acceptance of an offer with an incentive payment on a shortened timeframe is in your best interest.
9) Focus on how the project affects what remains
Owners often focus on how much land is being taken. The more important question is often how the project affects use, utility, and market perception of the remainder, or the property that remains after the taking.
Common residential considerations
Driveway changes or grade impacts
Loss of landscaping, fencing, or privacy
Drainage changes
Increased proximity to traffic
Common commercial and income-property considerations
Parking loss or reconfiguration
Visibility or signage impacts
Circulation and access functionality
Operational constraints
These issues may—or may not—translate into compensable impacts. They should be evaluated objectively.
Understanding the “Part Taken,” Damages, and Special Benefits
In a partial acquisition, compensation may include:
The Part Taken
The value of the property rights acquired (land ownership, permanent easements, or temporary easements).
Damages to the Remainder (if any)
A measurable reduction in market value to what remains, if recognized by the market.
Important note on access:
Properties generally have a right of access to the roadway system, but not to any particular level of convenience, traffic flow, or turning movement. Not all access changes are compensable. Whether an access impact results in damages depends on the specific facts and applicable law.
Special Benefits (if any)
In some cases, a project may create a property-specific benefit not shared generally by surrounding properties.
Practical point: The size of the acquisition does not always indicate the overall impact to a property. Early evaluation helps distinguish meaningful issues from non-issues.
Final Thought: Get Informed Early
Most property owners focus on the first offer. Better outcomes usually come from early organization and informed decision-making:
Understand the project and timeline
Document existing conditions
Engage valuation professionals early
Consult an experienced eminent domain attorney early, not to escalate, but to understand procedure, deadlines, and rights
Early legal and valuation guidance often helps owners avoid preventable mistakes and navigate the process with clarity and confidence.
If you’ve received a Notice of Intent to Acquire, treat it as the start of a process, and start building your record now. If you would like independent valuation guidance, please contact us to discuss your property and proposed acquisition.