We were paid for Severance damage in a partial sale to the County under eminent domain to extend a nearby roadway. The project has not yet started. We are now selling the entire property to an individual who is aware of the project. Do we have to pay the new buyer the Severance damage we received from the County?
3 Answers from Attorneys
No, not unless such a requirement was part of your deal with the county. However, the fact of the severance and the payment of damages to you must be disclosed to your buyer. Thus, the price you'll be able to get from the buyer should reflect the reduction in value caused by the severance.
No, but you must disclose clearly to the buyer that the property has been sold. Presumably this factor will be taken into account in the purchase price ( ie the purchaser will pay less because fo the loss of land).
No, because you are only selling the part of the property that you still own, not the part the county took by eminent domain.