What is the definition of "eminent domain"?

Eminent domain is defined as the right of the government to take private property for public use. This principle is grounded in the Fifth Amendment of the U.S. Constitution, which states that private property shall not be taken for public use without just compensation. This means that when the government requires land for projects such as roads, schools, or parks, it can legally acquire that property even if it is owned by private individuals. However, the government must provide fair compensation to the property owner for the taking of their property, ensuring that the rights of individuals are still protected while allowing for public development and benefit.

Understanding eminent domain is critical for those in real estate, as it can affect property values and ownership rights. The other options represent different legal concepts: the right of a private entity to claim land does not pertain to eminent domain, the settling of a deceased person's estate is related to probate law, and a contract between a property owner and a real estate agent deals with agency relationships in property transactions.