It appears that in SL -- as in RL -- whomever is "in charge" (read: rulemaker/enforcer)holds court over what property belongs to whom. In RL it is called "eminent domain." That means the folks "in charge" can take a person's land if that land can be put to a better use, as in a freeway or railroad tracks. The landowner is awarded whatever amount compensation the folks "in charge" feel is right. At least, that is how it used to be. The current trend, especially in those US areas deemed vacation spots, is for the "people in charge" to snag any land that they think will be of more value in the tax base. It's happened here. A house that had been in the "owner's" family for several generations was taken, so some rich guy could put up a condo. The city council said so.

No one ever really owns anything.