What does the concept of "eminent domain" refer to in real estate?

Eminent domain is a crucial concept in real estate that refers to the government's power to take private property for public use, provided that the property owner is compensated fairly. This authority allows the government to acquire land to build infrastructure, such as roads, schools, or parks, which serve the public interest. The process includes a legal framework that ensures property owners receive just compensation, aligning with the Fifth Amendment of the U.S. Constitution.

This concept is foundational to understanding the balance between private property rights and the needs of the community. It emphasizes the government's role in promoting public welfare by facilitating development that benefits society as a whole. In contrast, the other options highlight aspects that do not encapsulate the essence of eminent domain. For instance, the ability of property owners to decide land use focuses on private rights rather than public authority. Similarly, determining property value and the buyer's right to demand repairs do not pertain to the government's right of eminent domain, which is specifically about public acquisition of private property.