ABA Family Legal Guide

Home Ownership

Property Rights and Restrictions

Government Rights to Property

Can the government seize my property without paying me?

If you've been convicted of a crime, the federal government can seize any property used in the crime, including your house. The property may then be sold and the proceeds used to further the government's crime-fighting efforts. So if you own a crack house, your arrest and conviction may lead not only to jail time but also to permanent loss of the house and your equity in it.

For those of us who steer clear of crime, the good news is that recent changes in federal law make it far less likely that the government will seize our property. From 1970 to early 2000, police who even suspected you of committing a crime such as drug dealing or terrorism could seize any property that might have been involved, whether it was a car, an airplane, a boat, or a house. So if the tenant in your rental house was suspected of growing marijuana in the basement, the police could seize the house and sell it. It would be up to you to prove that your property should be returned. That law cost innocent property owners enormous litigation fees just to get their property back.

After a seven-year legislative battle over these civil forfeitures, Congress amended the law. Signed into law in May 2000, the Civil Asset Forfeiture Reform Act prohibits the government from confiscating property unless it can show "by a preponderance of the evidence" that the property is substantially connected to the crime. This is a much higher standard of proof than "probable cause." Property owners no longer have to post a bond in order to challenge a civil forfeiture, and they have more time to file the challenge. If a property owner successfully challenges the seizure in court, the government has to pay legal fees. And if the confiscation causes substantial hardship to the owner, the government just may release the property.

Under the new law, as long as you're staying away from crime, one thing you almost certainly don't have to worry about is the government seizing your property and selling it. To be on the safe side, avoid the appearance of criminal activity in your house and vehicles. And if your property should be seized, retain a knowledgeable, assertive lawyer as fast as you can.