United States
Using fair market price as compensation standard
In the United States, any demolition by the government is legally called "the government exercises the power of eminent domain and expropriates private property for compensation." The Fifth Amendment to the U.S. Constitution clearly states that the exercise of "the power of eminent domain" must meet three necessary conditions: demolition for the needs of the public interest; providing "fair compensation" to the demolished households; and going through due legal procedures.
The U.S. real estate industry uses "fair market price" as one of the standards for compensating demolished households. Both parties hire independent asset appraisers to submit appraisal reports. If the respective appraisal prices differ greatly, the court will form a jury to make a decision. If a private developer wants to develop a piece of land, he must give reasonable compensation to the demolisher. The standard of compensation is negotiated by both parties based on the fair market price. If the negotiation cannot be resolved, either give up or "see you in court."
South Korea
Legal protection of autonomous rights protection
South Korea has many laws on land expropriation and housing construction, such as the Urban Development Act and the Land Compensation Act, which have very detailed provisions on land expropriation compensation. If a company wants to buy and demolish the private houses of residents to build a building, it will take a long negotiation.
Before the negotiation, the intermediary certification agency recognized by both parties shall make a basic assessment of the land price and negotiate on this basis. If the developer wants to develop in a continuous area, Korean residents will spontaneously set up a "demolition countermeasures committee" to defend their rights in the name of the group. If the compensation provided by private enterprises for demolishing and developing residential buildings is not enough to satisfy the residents, the negotiation will be declared a failure and the project will be abandoned.
United Kingdom
It is the government's responsibility to resettle the displaced households
In the United Kingdom, it is difficult for the central government and local governments to expropriate land, and there are various objective conditions that require the land expropriation departments to act cautiously. The British government and functional departments shall expropriate land in accordance with the "Compulsory Acquisition of Land Act" implemented in England and Wales.
In terms of compensation for displaced households, displaced households will receive the market price of their damaged interests. On this basis, in the second month of the implementation of the "Compulsory Acquisition of Land Act", displaced households can receive an additional compensation of 10%. If the displaced households are businessmen, they should also receive compensation for business losses caused by relocation. If the negotiation of compensation price fails, it will enter the judicial decision.
It is the statutory duty of the British government to make efforts to resettle the displaced households. For developers, relocating the displaced households can reduce the amount of compensation paid to them.
