Section 10.6 Improvements

• Library: Eminent Domain 3rd Edition 2013

Improvements, structures, and fixtures attached to real property are treated as real property and compensation for them must be included in any award.

Gilbert v. State ex rel. Morrison, 85 Ariz. 321, 338 P.2d 787 (1959)

A provision in a lease which provides that the lessee will remove “all constructions and improvements” built by him from the leased premises at the expiration of the lease does not entitle the State to condemn substantial, permanent fixtures without providing compensation for their value. This private agreement between the lessee and lessor does not change the character of the improvements from realty to personalty for purposes of just compensation.

Gilbert v. State ex rel. Morrison, 85 Ariz. 321, 338 P.2d 787 (1959)

Improvements placed on the property after the date of service of the summons are not included in the assessment of compensation and damages.

A.R.S. § 12-1123(C).

Improvements placed on the property after knowledge of the probability of a condemnation action but before service of summons are compensable if they were placed on the property in good faith and not for the purpose of increasing value on the date of summons.

State ex rel. Herman v. Schaffer, 110 Ariz. 91, 515 P.2d 593 (1973) (“bad faith” improvements are those which are not made in the natural, ordinary, and legitimate use...