What is meant by "eminent domain" in relation to real estate?

Eminent domain refers to the government's power to take private property for public use, provided that the owner is fairly compensated. This legal principle is rooted in the Fifth Amendment of the U.S. Constitution, which states that private property cannot be taken for public use without just compensation. The purpose of eminent domain is to allow the government to acquire land needed for public projects, such as roads, schools, or parks, which ultimately serve the community's interests.

The other options do not accurately describe eminent domain. Selling property at auction pertains to the method of property sale and does not involve government authority or the public good. Transferring property titles relates to the process of legal ownership transfer, which is not associated with government rights over private property. Lastly, managing property disputes involves legal processes for resolving conflicts between property owners but does not encompass the government's right to take property for public use. Thus, the definition capturing the essence of eminent domain in the context of real estate is the right of the government to take private property for public use.