Inverse Condemnation: Right Of Reentry Is A Compensable Property Interest

Tuesday, April 30, 2013 12:00 am
Land Use Law Report, Volume 41, Number 4

A city’s refusal to honor a right of reentry clause in a special warranty deed could lead to compensation under an inverse condemnation theory.

Facts: El Dorado Land Company (El Dorado) sued the City of McKinney, Texas for inverse condemnation after the city built a library on property that El Dorado alleged it had a reversionary interest in. In 1999, El Dorado sold the property to the city by special warranty deed. The deed stated that the conveyance was “subject to the requirement and restriction that the property shall be used only as a Community Park,” and if the City chose not to use the property for that purpose, El Dorado would have the right to purchase the pr[..]


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