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.