Government Must Pay Just and Adequate Compensation When Taking Private Property

In Texas, and elsewhere, the government has a right to take control of private property for a public use, through the exercise of eminent domain powers.  This power may be broad and substantial, but it does have its limits — as a landowner, you must be properly compensated for the taking.

Though you may be unable to prevent the government from exercising their eminent domain power and “taking” your private property, you are legally entitled — under both Texas and federal law — to just and adequate compensation.

When taking your land, the government must put forth a purchasing offer that is based on an appraisal.  This purchase offer will be considered “just and adequate” if it reflects the true market value of the property, as well as any additional damages that the property may have suffered due to government interference. 

For example, suppose that you have a large plot of farmland.  The government decides to exercise their eminent domain powers and “take” a portion of your farmland.  Though their initial offer may reflect the true market value of the portion of land they intend to take, it may not be “just and adequate” if it does not consider the damages caused by the taking (to the rest of your farmland).

Perhaps they will be taking and developing the land in such a way that it will prevent you from irrigating a portion of your remaining farmland.  This damage must be calculated and incorporated into the government’s purchase offer.

When taking property through the exercise of eminent domain power, the government will always attempt to minimize the amount that they have to pay — as such, they are likely to make a “lowball offer” whenever doing so is possible.

In order to justify their lowball offer, the government — in Texas and elsewhere — will hire trusted appraisers to evaluate the market value of the property at-issue.  These appraisers may have pre-existing relationships with the government and may be routinely used.  This creates an inherent and undeniable bias.  The appraiser will want to provide a “beneficial” appraisal (in other words, an appraisal that undervalues the property) to the government so that they are given more work in the future.

Landowners need not accept these lowball offers, even though it can be rather intimidating as the government moves forward with the process of appraisal.  With the assistance of an experienced condemnation professional, you can challenge the government’s appraisal and hire an independent appraiser of your own.  This will ensure that your property is comprehensively evaluated, and that no corners are cut to benefit the government’s position.

It’s worth pointing out, however, that if you’re going to hire an appraiser of your own, then you have a limited period of time in which to do so: just ten days from having received the government’s appraisal report.  It’s therefore critical that you consult an attorney to guide you through these procedurally-sensitive processes.