What Are the Legal Consequences of Rejecting an Eminent Domain Offer?

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As a Texas property owner, you have the right to reject a condemnation offer from the entity intent on taking your land. Explore your legal options today by contacting a skilled and trusted eminent domain and condemnation attorney.

If you own property in Texas, it’s important to recognize that there are circumstances in which a qualified entity, such as a federal, state, or local government, has the right to invoke its eminent domain power to seize your land and use it in a way that benefits the public. In other words, eminent domain power allows certain entities to take private property and convert it into projects that are intended for public use. One common example of eminent domain is when a department of transportation needs to build a new road in order to improve traffic flow in a certain area. However, in order to accomplish this goal, the department may need to take private land on which to construct the roadway. It’s important to note that the entity invoking its eminent domain power must provide what’s known as “adequate compensation” to the landowner in exchange for the land seizure. When an entity decides to exercise its eminent domain authority, it will initiate a legal process called condemnation.

As a private landowner, learning that you are facing a condemnation action can be disorienting and stressful, especially since you may not understand your legal rights and obligations during this process. For instance, it’s within your legal right to reject the condemning authority’s compensation offer if it undervalues your property. When you enlist the support of a highly experienced and dedicated Texas condemnation attorney, you can discuss your legal rights and options to identify the most strategic path forward. Let’s take a look at Texas condemnation laws, your property owner rights, and how to make informed decisions that maximize your chances of obtaining a fair and just outcome.

Can You Legally Reject an Eminent Domain Offer in Texas?

When a qualified entity wishes to invoke its eminent domain authority, it must present you with a bona fide offer of compensation as well as a formal document entitled “The State of Texas Landowner’s Bill of Rights.” This document outlines your rights as a property owner facing a condemnation action. One of your rights reads, “You may hire an attorney to negotiate with the condemning entity and to represent you in any legal proceedings involving the condemnation.” In other words, you are not obligated to accept the terms of the condemnation (including the amount of compensation offered) without question. Your condemnation lawyer can help you push back against the offer or hire an independent appraiser who can arrive at a more accurate property valuation so you can use this information to negotiate a more fair and favorable compensation offer. Should the other party take issue with your attempt to negotiate, you can explore potential legal alternatives, such as taking the matter to a hearing before a panel of three special commissioners. Ultimately, the takeaway is that you have many options to explore when facing a Texas condemnation action.

Legal Consequences of Rejecting an Offer

According to the Texas Landowner’s Bill of Rights, “The condemnor must give you at least 14 days to consider the final offer before filing a lawsuit to condemn your property, which begins the legal condemnation process.” Essentially, if you reject their compensation offer, the condemning authority will initiate an eminent domain lawsuit in the appropriate court located in the county where your property is. The filing of the condemnation action initiates a legal process where the judge will appoint a panel of three local landowners who will serve as special commissioners. The panel’s job is to “decide what amount of money is adequate to compensate you for your property.” These special commissioners will hold a hearing in which you and the condemning entity present your points of view, as well as any evidence that supports your positions. The panel will then determine the amount of compensation that is considered appropriate for the taking of your land and issue its written decision (known as the Award). However, it’s important to recognize that the parties can still object to the Award by taking the matter to civil court, where a judge or jury will decide the outcome.

When Does it Make Sense to Reject an Offer in Texas?

Generally speaking, there are certain cases in which it may be in the landowner’s best interest to reject the condemning authority’s initial offer. For instance, if the proposed offer is unfair or undervalues the true worth of the property, it’s probably worth pushing back against this offer in favor of a more realistic offer that takes into consideration the current and future value of the property. In other cases, it may be strategic to reject an offer if the proposed action will affect the future value or use of your property. Partial takings may still allow you to reside on your property, but you may experience loud noises, damage to the remaining property, and other adverse outcomes that you can use to justify your request for a more robust and appropriate compensation offer. You can discuss the specific details of your situation with your trusted Texas condemnation attorney for more customized legal guidance.

Learn More About Challenging Eminent Domain Actions in Texas

As soon as you hear about a proposed project in your community that could affect your land, it’s a good idea to get in touch with a knowledgeable and experienced Texas condemnation attorney to discuss your legal rights and options. Together, you can explore strategies for securing a compensation offer that reflects the fair market value of your property and other costs associated with the impending land seizure. Whether you decide that challenging eminent domain actions is in your best interests or taking the matter to mediation to obtain a fair compensation offer will likely deliver a favorable outcome, having a dedicated legal advocate by your side is highly recommended.

If you have questions about your rights as a property owner facing a condemnation action, the dedicated and highly qualified legal team at Sewell Sewell Beard LLC is ready to assist you. We’ve been doing this for 40 years! Please contact our Prosper, Texas office at (972) 777-5390 or our Jasper, Alabama office at (205) 544-2350 today to get started with a trusted eminent domain and condemnation attorney.