Eminent Domain – What Is Fair Compensation?
The government made a lowball offer to condemn a portion of my property. The offer is only pennies on the dollar of what they should pay. They don’t even offer any money for the damage the project will cause to the property that I’ll still own. Is that right?
No. Once the condemnor has established its legal authority to condemn the subject property and has complied with relevant law, most disputed condemnation cases boil down to one main issue – money. The U.S. Constitution protects a property owner’s right to “just compensation” for condemned property; the Texas Constitution offers “adequate compensation.” Adequate compensation is generally considered to be fair market value, which is the price a willing buyer would pay to a willing seller.
Fair compensation is also determined by the type of “taking” that occurs. For example, if an entire property is condemned, the landowner is entitled to receive the fair market value for the entire property. But, as in your case, if only a portion of the property is condemned, Texas law allows the landowner to be compensated for the portion of the property actually taken and the damage to the landowner’s remaining property.
Do condemning authorities ever offer less than the fair market value of the property they seek?
Yes. Determining the correct amount of just compensation is often hotly contested by the parties and can be a slippery task (as evidenced by the wealth of Texas cases on the topic). It is often essential to have an experienced attorney and appraiser to ensure that fair market value is determined properly.
This article appears in November 13 • 2009.