What is inverse condemnation?

Inverse condemnation refers to a situation where a property owner seeks compensation from the government because their property has been effectively taken or damaged by government action, even though no formal condemnation proceedings were initiated by the government. This often occurs when government actions lead to a decrease in property value, or when property is rendered unusable due to government projects or regulations.

In this context, the second option is correct because it accurately describes the necessity for property owners to pursue legal action to recover compensation. When the government does not formally take the property through a condemnation process but still interferes with the owner’s rights or use of the property, the owner must initiate a lawsuit to claim compensation for the loss incurred. This distinguishes inverse condemnation from more standard forms of taking, where compensation is provided upfront through the government's established procedures.

The other answer choices do not encapsulate the essence of inverse condemnation because they describe scenarios involving government property acquisition or voluntary transfer, which do not apply to cases where property owners need to petition for compensation.