From Dawson and Dodd, LLP: What Is Just and Adequate Compensation in a Texas Eminent Domain Case?

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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 certain rights . This includes a “just” and “adequate” compensation for their land when it is taken by the government or other entity in an eminent domain action.

THE GOVERNMENT MUST MAKE A BONA FIDE OFFER TO BUY LAND USING EMINENT DOMAIN IN TEXAS

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.) The offer will state 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 WITH THE GOVERNMENT’S BONA FIDE OFFER IN TEXAS

There is a problem with this. In most circumstances, the amount that 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. It is also typically 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. 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. 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 JUST AND ADEQUATE COMPENSATION?

At the law offices of Dawson & Sodd, we’ve received many complaints from Texas landowners. They 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. An attorney can bring in an independent appraiser and other expert witnesses. They will determine the true just and adequate value of your property. They will use the new appraisal to renegotiate the taking entity’s “bona fide” offer. It will also be 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
Zoning
Easements
Leaseholders
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.)