Frequently Asked Questions: Texas Eminent Domain & Condemnation

Answers to common questions landowners have about the process, their rights, and compensation in Texas.

Common Questions from Texas Landowners

Receiving notice that your property might be involved in an eminent domain taking can be confusing and raise many questions about the process and your rights. Here we address some of the most frequent inquiries we receive regarding eminent domain and condemnation in Texas.

Disclaimer: Every case and property is unique. The general answers provided here are for informational purposes only and may not apply directly to your situation. This information should not be considered legal advice. Please consult with an attorney for advice regarding your particular case.

Basic Terms Defined

“Eminent domain” is the government’s inherent power (or power granted to certain private entities by the government) to take private property for public use. “Condemnation” is the formal legal process used to exercise that power and transfer title when a property owner doesn’t voluntarily sell. (This is distinct from property being “condemned” due to code violations.) Learn more on our Overview of Texas Eminent Domain page.

Inverse condemnation occurs when a government action damages or takes the use/value of property without initiating the formal condemnation process. In these cases, the property owner must file a lawsuit against the government seeking compensation for the taking or damaging. Read more about Inverse Condemnation Claims in Texas.

Both the U.S. Constitution (Fifth Amendment) and the Texas Constitution (Article I, Section 17) acknowledge the government’s power but place crucial limits: the taking must be for “public use,” and the property owner must receive “just” or “adequate” compensation. Article I, Section 19 of the Texas Constitution also guarantees due process. Explore Landowner Rights in Texas.

Who Can Condemn & Why?

Various governmental entities (federal, state, county, city, school districts, water districts) typically have eminent domain power. Additionally, the Texas Legislature has granted this power to certain private entities for specific public uses, such as common carrier pipelines and public utilities. See Types of Takings in Texas.

 Condemnation provides a legal mechanism to acquire property necessary for public projects even if a landowner is unwilling to sell or demands a price the entity deems unreasonable. It prevents essential infrastructure projects from being blocked by individual holdouts. However, it also gives the condemning entity significant negotiating leverage, as the landowner cannot simply refuse to sell if the taking is legally valid.

Frequent projects include building or expanding roads and highways (TxDOT), oil and gas pipelines, electric transmission lines, water/sewer lines, schools, parks, rail lines, and other public infrastructure needed to support Texas’s growth. Learn about Common Types of Takings.

The Condemnation Process Steps

It usually starts with the condemning entity planning a project, identifying needed property, conducting appraisals, and then contacting landowners with an initial offer to purchase. They must provide certain information, including often the Landowner’s Bill of Rights. See the Step-by-Step Texas Condemnation Process.

If negotiations fail after the entity makes its required final statutory offer, they will typically file a condemnation lawsuit against you in court. The next step after filing suit is usually the appointment of Special Commissioners to hold a hearing and determine an initial amount of compensation.

It’s an administrative hearing (less formal than court) where three court-appointed, disinterested local landowners (the Special Commissioners) hear evidence from both sides solely on the issue of property value and damages. They then issue an “Award” stating the compensation amount the entity must deposit to potentially take possession. It is not a final determination if either party objects.

Your Rights & Challenges

No. You have the right to negotiate, and you are not obligated to accept any offer, including the “final” statutory offer made before a lawsuit. Rejecting the offer means the entity must initiate formal condemnation proceedings if they want to acquire the property. Learn about Your Landowner Rights.

Sometimes, but it is difficult. Challenges focus on the entity’s right to take, arguing they lack authority, the project isn’t a valid “public use,” they acted in bad faith, or failed to follow required procedures. Disagreeing only with the amount of compensation offered is not grounds to stop the taking itself. These challenges are complex and decided by a judge. Explore Challenging the Right to Take.

Compensation & Property Value

Generally, it means the fair market value of the property rights being taken PLUS any damages caused to the market value of your remaining property (remainder damages) as a result of the taking and the project. The goal is to make you financially whole. Understand How Just Compensation is Calculated.

Offers may be low due to various factors: appraisals that underestimate remainder damages, differing opinions on highest/best use, negotiation tactics, or simply incomplete information early on. It’s crucial to have the offer reviewed and potentially obtain your own appraisal. Read more about Just Compensation and Valuation.

Hiring an Attorney

You can listen, but be cautious about what you say or sign. Anything you state about value or impacts could potentially be used later. It’s often wise to consult with an attorney before having substantive discussions or providing information. See Your Landowner Rights.

There can be potential harm. Condemnation involves complex legal and appraisal rules. Statements made or agreements reached without fully understanding valuation principles (like highest/best use, all types of damages) or protective easement terms could negatively impact your final outcome. Consulting knowledgeable counsel early is often beneficial.

Fee arrangements vary (often contingent). Typically, landowners are responsible for their own fees. While recovery of attorney fees from the condemnor is possible in Texas under very specific and limited circumstances (like certain dismissals or abandoned proceedings), it is not the norm simply for achieving a higher compensation amount. Discuss fees clearly with any attorney you consider hiring.

Inverse Condemnation Explained

In inverse condemnation, the landowner initiates the lawsuit because they believe the government’s actions have already taken or damaged their property without paying compensation or following the formal process. In direct condemnation, the government initiates the suit to acquire the property. The burden of proof is different. Learn about Inverse Condemnation Claims.

Still Have Questions?

The eminent domain process in Texas can be complex. If your question wasn’t answered here or you need advice specific to your situation, please don’t hesitate to reach out to the knowledgeable attorneys at Dawson & Sodd.

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