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What is a condemnation clause?

A Condemnation clause in a lease determines what happens in the event that the leased premises are taken from the landlord by a governmental agency for public use, either by condemnation or eminent domain.

What are the clauses in a mortgage?

The mortgagee clause is an important provision in a property insurance policy that ensures that the insurance company will pay the mortgagee in the event that loss or damage occurs to a mortgagors property. The clause is an important measure that mortgagees take to protect their investment in a mortgagors property.

What is an example of condemnation real estate?

Other Examples of Condemnation in Real Estate In addition, condemnation proceedings are not always permanent and may not always involve seizing the entire property. For example, a local city government may seize part of a landowners property to widen a roadway or a community driveway for their neighbors.

Who has the right to condemn?

Under U.S. law, the government (federal, state, local, or municipal) may condemn property. These governments can also delegate this authority to various agencies or private parties to act on their behalf. In order to build out public infrastructure, a public utility is often given the power to condemn property.

What is a condemnation clause in a mortgage?

The clause gives the mortgage holder the right to all proceeds to be paid in the condemnation case up to the amount owed on the mortgage. Obviously, the bank cant take more than it is owed. The second type is based upon a calculation related to how much equity you have in your property.

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