What Is Just and Adequate Compensation in a Texas Eminent Domain Case?
In many instances, a property owner in Texas can’t prevent the government or other entity with eminent domain authority from condemning and taking their land. What they can do is take steps to ensure they receive full value for the property that is taken.
Both the U.S. Constitution and the Texas state Constitution guarantee that a property owner is entitled to “just” and “adequate” compensation for their land when it is taken by the government or other entity in an eminent domain action.
Making A Bona Fide Offer
Before an entity with eminent domain power in the state of Texas can take your land, they must first make a bona fide offer to buy it. This offer is based on an appraisal by a certified appraiser (that they hire) stating the just and/or adequate compensation you are owed for your property and how they arrived at this amount. The State of Texas Landowners Bill of Rights states that this amount should include the value of the property being acquired as well as the damages, if any, to any of the remaining property. The entity’s final offer must be equal or greater than the amount of the written appraisal. The property owner then has 14 days to respond to accept or reject this final offer.
The problem is that in most circumstances what the entity with eminent domain authority considers to be fair compensation for a parcel of land may be a lot less than what the property owner is entitled to and a lot less than what the landowner thinks his or her property is worth.
Just compensation is the current fair market value for a piece of property. In other words, the owner is entitled to the same amount of money they would receive if they placed the property on the open market. Determining just compensation is important when an entire piece of property is being taken. However, if only a portion of a piece of land is taken, or will be used for only a specific period of time, the owner needs to consider what is “adequate” compensation for the difference in property values before and after the taking.
What if You Don’t Think the Offer is Fair or Adequate?
At the law offices of Dawson & Sodd, we’ve received many complaints from Texas landowners who feel the amount they’ve been offered for their land in a condemnation proceeding is much less than what they consider to be just compensation. In these circumstances, we advise them to hire an experienced Texas eminent domain attorney who can bring in an independent appraiser and other expert witnesses to determine the true just and adequate value of your property. The new appraisal will be used to renegotiate the taking entity’s “bona fide” offer or as evidence in court if a lawsuit is necessary.
Some factors to consider when determining the fair market value of a property include:
- Current market value of the land
- Loss of income
- Loss of use/accessibility
- The size of the property
- Tax declarations
- The level of development
- Current use and potential use
- Interest payments
- Any land improvements seized
- The use to which the condemning authority will put the part taken and how that will affect the remaining property
- Specific damages caused by the taking
- Unique characteristics (historic structures, natural resources, etc.)
At Dawson & Sodd, We Want to Ensure You Get Fair and Adequate Compensation
Don’t accept any offer, bona fide or not, before speaking with the award winning Texas eminent domain attorneys at Dawson & Sodd. Let us put our 100-plus years of experience and knowledge to work on your behalf to protect your rights and ensure you receive the just and adequate compensation you are owed under the law.
If you are a Texas property owner who’s facing losing all or part of your land in an eminent domain action, please reach out Dawson & Sodd today to schedule a free consultation.