Which statement is true regarding eminent domain proceedings?

Eminent domain is a legal process through which a government or an authorized entity can acquire private property for public use, even if the owner does not wish to sell. When eminent domain proceedings are initiated, the acquiring entity, which can be a government agency or a private entity acting with government approval, gains legal title to the property. This transfer of title occurs once the process is complete, which typically involves a legal determination that the taking is justified and in the public interest.

The process also involves providing the property owner with compensation; however, this compensation is not limited to the market value alone, as other considerations may come into play depending on the jurisdiction and specifics of the case. Moreover, eminent domain applies to both commercial and residential properties, meaning it is not restricted solely to commercial real estate. Thus, the statement that conveys legal title to the acquiring entity accurately reflects the nature of eminent domain proceedings.