In the context of eminent domain, New York is a quick-take state. That means that the government can take title before it has paid for the property that it has taken. Often it is years before a court makes the final determination of just compensation. As a way to help soften the impact, the condemning authority is supposed to prepare an appraisal report as soon as practicable and then pay to the owner 100% of its highest approved appraisal. This “advance payment” functions as a band-aid until the court determines just compensation. It helps the owner purchase replacement property, bear the expenses associated with the forced loss of its property and otherwise ameliorate the effects of eminent domain.

However, when an owner files a condemnation claim it is not uncommon for a condemning authority to prepare a second appraisal report and abandon whatever it used to generate the advance payment. As a result, when trial appraisals are exchanged, often a year or more after title vesting, the condemnor’s valuation may change. The condemnor will not disclose the appraisal report that it used for the advance payment and rarely offers any formal explanation as to why the change was made. Both the advance payment and the condemnor’s subsequent trial appraisal are entirely and exclusively within the condemnor’s control. Sometimes the condemnor’s value will increase; sometimes it will decrease; and both are bad.

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