Who is typically compensated when the government uses eminent domain?

When the government exercises its power of eminent domain, the compensation is typically directed to the previous owner of the property. This principle is rooted in the Fifth Amendment to the United States Constitution, which states that private property shall not be taken for public use without just compensation.

When a property is seized through eminent domain, the government must provide a fair market value compensation to the owner who is being displaced. This ensures that the property owner is adequately compensated for the loss of their property, allowing them to potentially relocate or acquire a similar property.

The other options, such as tenants or the local community, generally do not receive direct compensation from the government when a property is taken. Tenants may face eviction, but they do not receive compensation from the government for the loss of their lease or residency, while the local community may benefit in some way from the public project that the eminent domain serves, but they are not compensated directly for the loss of property rights. The government itself does not profit in the traditional sense from the exercise of eminent domain; rather, it incurs costs associated with compensation to the property owner.