Your Texas Advocates in Eminent Domain

Securing Just Compensation in Texas Eminent Domain

Understand how fair market value and damages determine the payment you deserve when property is taken in Texas.

The Right to Fair Payment: Just and Adequate Compensation

When the government or another entity condemns your property through eminent domain, they are legally required to pay you for it. Both the U.S. Constitution and the Texas Constitution guarantee property owners the right to receive “just and adequate” compensation for the property taken for public use.

But what does “just and adequate” actually mean in a Texas condemnation case? It generally involves determining the fair value of what was taken and accounting for how the taking impacts the property you still own. This ensures you are made financially whole, as if the taking never happened.

Calculating Compensation: Two Key Parts

Determining the total compensation owed typically involves assessing two critical components under Texas law:

Part 1: Fair Market Value of the Property Taken

This is the payment for the specific land, easement, or property rights the condemning entity is acquiring.

“Fair Market Value” is generally defined as the price the property would sell for on the open market between a willing buyer and a willing seller, neither being forced to act.

Valuation considers factors like the property’s location, size, zoning, condition, and its “highest and best use” (the most profitable legal use of the property, even if it’s not currently used that way).

Part 2: Damages to Your Remaining Property (Remainder Damages)

This is often the most complex and contested part of compensation. When only a portion of your property is taken (a partial taking), you are entitled to payment for any decrease in the market value of the property you still own that results from the taking and the new public project.

Examples of factors causing remainder damages include:

Losing access or having more difficult access to your remaining land.
The remaining property becoming an awkward size or shape for its intended use.
Noise, vibration, or visual impacts from the new project (like a highway or pipeline).
Loss of potential development value due to the project.

Calculating these damages requires careful analysis of how the taking affects the usability and desirability of your leftover property. Here’s a summary comparing these two key components:

Aspect	Fair Market Value (of Part Taken)	Remainder Damages (to Property Left)
What It Is	The price the specific property being acquired would likely sell for on the open market.	The decrease in market value of the property you still own after the taking, caused by the project.
Applies To	The actual land, easement, or property rights being condemned and acquired by the entity.	The portion of your property that you retain ownership of after the partial taking.
Basis of Calculation	Determined by what a willing buyer would pay a willing seller, considering its highest and best use.	Calculated as the difference in the remainder’s market value before the taking versus after the taking (considering project impacts).
Common Factors	Property size, location, zoning, condition, comparable sales, highest & best use potential.	Loss/impairment of access, awkward size/shape, severance, proximity impacts (noise, view), project nuisances.
Goal	To pay you for the asset that is being physically taken away or the rights being acquired.	To compensate you for the financial harm done to the property you keep as a result of the taking and the project.

How Value and Damages are Determined

Calculating fair market value and remainder damages isn’t just guesswork; it relies on evidence. The primary method used in Texas condemnation cases is through real estate appraisals.

Both the condemning entity and the landowner typically hire qualified, independent appraisers who specialize in eminent domain valuation. These appraisers analyze comparable sales data, property characteristics, market trends, and the impact of the taking to form an opinion of value and damages.

Other evidence might include testimony from engineers (regarding project impacts), land planners (regarding development potential), or economists (regarding business losses in some cases). The goal is to present persuasive evidence supporting the claim for full compensation.

As a landowner, you have the right to obtain your own appraisal to counter the condemning entity’s valuation.

Why Initial Offers Are Often Too Low

It is common for the condemning entity’s first offer to be significantly less than the amount a landowner may ultimately be entitled to receive. Why does this happen?

Underestimation of Remainder Damages: The entity’s appraisal might minimize or completely ignore the negative impacts on the value of your remaining property.
Different Opinions of Value: Appraisers can reasonably differ on market value and highest/best use; the entity’s appraisal might use data or assumptions less favorable to the landowner.
Negotiating Tactic: Some entities may simply make a lower initial offer expecting negotiation.
Incomplete Information: The initial appraisal might have been done without full knowledge of specific property features or potential issues.

It is crucial not to assume the first offer represents the full and fair compensation required by law.

How Dawson & Sodd Pursues Full Compensation for Landowners

Securing just and adequate compensation is a primary focus when we represent property owners in eminent domain cases. Drawing on our extensive experience handling Texas condemnations, Dawson & Sodd takes methodical steps to pursue the full value you deserve:

Critically Analyzing the Condemnor’s Appraisal: We meticulously review the entity’s valuation for errors, omissions, and unsupported conclusions, particularly regarding remainder damages.
Engaging Independent, Qualified Appraisers: We work with knowledgeable appraisers familiar with Texas property markets and condemnation valuation to develop a thorough, independent assessment of fair market value and damages.
Building a Strong Case for Value: We gather evidence and work with necessary professionals (engineers, land planners, etc.) to support the highest and best use of your property and quantify all damages.
Negotiating from a Position of Strength: Armed with strong evidence, we negotiate forcefully with the condemning entity to achieve a settlement reflecting full compensation.
Presenting Compelling Evidence: If negotiation fails, we effectively present appraisal testimony and supporting evidence at Special Commissioners’ Hearings and in court to demonstrate the true amount owed.

Our objective is always to ensure you are not left financially harmed by the condemnation process.

Frequently Asked Questions About Just Compensation

Typically, the landowner is initially responsible for the cost of hiring their own appraiser and other professionals needed to determine fair value. However, these costs might be discussed as part of settlement negotiations, or in some limited circumstances, potentially recovered through litigation if certain conditions are met under Texas law.

Sometimes, but often separately from the eminent domain compensation for the property itself. Certain state and federal laws, like the Uniform Relocation Act (if federal funds are involved), may provide separate benefits for relocation expenses for displaced homeowners or businesses. This is a distinct process that should be explored.

Generally, under Texas law, compensation in eminent domain focuses on the value of the real estate being taken and damages to remaining real estate. Lost profits or business damages are typically not recoverable unless the taking essentially destroys the business and it cannot realistically relocate. Proving this is very difficult and fact-specific.

Compensation is usually based on the property’s market value before the influence of the specific public project for which it’s being taken (i.e., ignoring any artificial increase or decrease caused by the project itself). This is known as the “project influence rule,” though its application can be complex.

Related Information on Your Rights and the Process

Understanding compensation is part of the bigger picture:

The Texas Condemnation Process

Learn the step-by-step procedure.

Your Texas Landowner Rights

Know your protections throughout the process.

Overview of Texas Eminent Domain

Return to our main overview page.

Ensure You Receive Fair Compensation:
Speak with Us

Don’t accept an offer for your property without understanding how just and adequate compensation is calculated under Texas law. Securing fair payment often requires knowledgeable legal representation focused on protecting your financial interests.

Contact Dawson & Sodd today for a free, confidential consultation. We can review your situation and discuss how we fight for the full compensation property owners deserve.

Request a Free Consultation

(903) 872 – 8181