Eminent Domain & Condemnation Attorneys — New Jersey

We represent property owners — not the government — in condemnation matters across all 21 New Jersey counties. From single-family homeowners served with a notice of taking to corporate owners navigating multi-parcel transit projects, our practice is built on a single proposition: the first offer is rarely just compensation.

Rail corridor — example of a transit taking

How New Jersey eminent domain actually works.

The Eminent Domain Act of 1971 (N.J.S.A. 20:3-1 et seq.) governs every state, county, municipal and authority taking in New Jersey. The procedure is rigid — and the owner has rights at every stage.

  1. 01

    Bona fide negotiation

    Before filing, the agency must make a written offer based on a current appraisal and engage in good-faith negotiation. A lowball or pro forma offer can void the taking.

  2. 02

    Verified complaint & declaration of taking

    If negotiation fails, the agency files in Superior Court and deposits its appraised value with the court. Title vests in the agency; the owner may withdraw the deposit without prejudice.

  3. 03

    Commissioners' hearing

    Three court-appointed commissioners (typically a real estate professional, an attorney and a businessperson) hear evidence and fix a value. Either party can appeal de novo.

  4. 04

    Jury trial

    On appeal from the commissioners, a jury determines just compensation. The verdict is the final value — and frequently materially higher than the original offer.

  5. 05

    Fees & interest

    Statutory interest accrues on the difference between the deposit and the final award. Attorney, appraisal and engineering fees may be recoverable under N.J.S.A. 20:3-26.

Eminent domain in New Jersey, answered.

Last reviewed by Michael J. Ash, NJ Supreme Court Certified Trial Attorney, July 2026.

What is eminent domain in New Jersey?
Eminent domain is the power of federal, state, county and municipal governments — and certain utilities and authorities — to take private property for public use, provided they pay the owner just compensation. In New Jersey the process is governed by the Eminent Domain Act of 1971 (N.J.S.A. 20:3-1 et seq.), which requires the condemning agency to first attempt bona fide negotiation, then file a verified complaint, then have commissioners or a jury fix the value if no agreement is reached.
Can I refuse the government's offer?
Yes. The initial offer from the condemning agency is rarely the final number. Property owners have the right to reject the offer, demand discovery of the appraisal that supports it, present their own appraisal evidence, and have the value determined by court-appointed commissioners and ultimately by a jury. In our experience, negotiated and litigated outcomes routinely exceed the initial offer by multiples — sometimes by orders of magnitude.
How long does an eminent domain case take in New Jersey?
Most NJ eminent domain matters resolve in 12–24 months from the filing of the complaint. Cases involving partial takings, highest-and-best-use disputes, environmental issues or contested redevelopment designations can run 24–36 months or longer if appealed. Importantly, the property owner is entitled to possession of any deposit on file with the court while the valuation is being litigated.
Who pays my attorney fees?
Most eminent domain matters in New Jersey are handled on a contingency basis — there is no out-of-pocket fee to the property owner. In addition, N.J.S.A. 20:3-26 provides for the recovery of reasonable attorney, appraisal and engineering fees in certain circumstances, including where the verdict materially exceeds the deposit or where the taking is dismissed.
What is 'just compensation'?
Just compensation is the fair market value of the property taken, measured at its highest and best use as of the date of the taking — not the use the owner happens to be making of it today. In a partial taking, just compensation also includes severance damages: the diminution in value to the remainder of the property caused by the taking and the project for which it is being taken.
Do I have to pay taxes on an eminent domain settlement?
Eminent domain proceeds are generally treated as the sale of property for federal income tax purposes, but Section 1033 of the Internal Revenue Code allows owners to defer recognition of the gain by reinvesting the proceeds in similar property within statutory time limits. Tax treatment depends on the property type and the owner's holding structure — coordinate with a tax professional alongside your condemnation counsel.

If you've received a notice of condemnation, the clock is already running.