What is Adequate Compensation in Texas Property Condemnation?

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Private property owners facing condemnation have the right to fair and adequate compensation. Learn more about your legal rights and options today by contacting a highly qualified Texas condemnation lawyer.

Those who own land in Texas generally enjoy strong legal protections. For the most part, private landowners can do what they want with their property without worrying about pushback or intervention from the federal, state, or local government. However, it’s important to recognize that there are a few limitations to a property owner’s rights. For instance, the power of eminent domain gives state, federal, and local governments the authority to seize private property in order to use it for projects that are intended for public use. A common example of a government entity exercising its eminent domain power is when the Department of Transportation needs to convert private property into a new highway onramp or road expansion project in order to improve traffic flow in the area. Although the qualified government entity has the right to exercise its eminent domain authority for projects that will benefit the public in some way, it is legally obligated to pay the affected landowners a fair amount of compensation in exchange for the private property.

Negotiating eminent domain compensation can be challenging, as the term “adequate compensation” tends to be frustratingly vague and open to interpretation. Unfortunately, many private landowners in Texas facing an eminent domain action are not certain of their legal rights during this process, and they may feel pressured to accept a lowball settlement offer because they are unaware of their option to negotiate for a lot more money. It’s essential to understand that all private landowners facing an eminent domain action or condemnation proceedings (condemnation refers to the formal legal process that takes place when an entity invokes its eminent domain power) have the right to work with a highly experienced and knowledgeable eminent domain lawyer who can help them exercise their legal rights and secure a much better outcome. Let’s take a closer look at how eminent domain settlement compensation typically works in Texas and some strategies you can use to maximize your chances of securing a favorable resolution.

How is Eminent Domain Compensation Determined in Texas?

When a qualified government entity decides to exercise its eminent domain power, it must adhere to a set of rules and procedures to ensure that the affected parties understand their legal rights and responsibilities. The Texas Legislature and the Texas Property Code outline these rights, and they have been compiled and made available in the form of The State of Texas Landowner’s Bill of Rights. This document tells the condemning authority and the affected private property owners what steps to take as they move through the condemnation process. The first of these rights reads, “You are entitled to receive adequate compensation if your property is condemned.” So, what does the term “adequate compensation” actually mean in practice? According to the Texas Attorney General’s Office, “Adequate compensation typically means the market value of the property being condemned.” However, the condemning authority is likely to use an appraiser with whom they have a longstanding and friendly professional relationship to determine the market value of your property—which means that the eminent domain payout they initially offer will probably not reflect other important factors that would elevate the value of your property.

Negotiating Eminent Domain Just Compensation in Texas

As a private property owner facing condemnation, it’s best to approach any initial offer of compensation with skepticism. The condemning authority will want to save money and pay you as little as possible to protect its bottom line. When you receive a condemnation notice, this written letter will contain a “bona fide offer,” which must include “either a large-font, bold-print statement saying whether the offered compensation includes damages to the remainder of your remaining property or a formal appraisal of the property that identifies any damages to the remaining property (if any).” Ideally, you would contact a trusted and experienced Texas condemnation attorney as soon as you heard rumblings of a proposed construction project in your community, as it’s essential to seek legal representation before you receive a condemnation notice. You need to already know what you are entitled to receive when you get your offer. That’s the only way to know if the offer is legitimate. Your skilled and trusted eminent domain lawyer knows how to navigate the seas of a condemnation. For instance, your attorney can hook you up with an independent condemnation appraiser to assess the value of your property from a more comprehensive perspective, taking into account eminent domain relocation compensation, future market value, damage to the portion of your property not taken (the remainder) and other considerations. You and your lawyer can then use this information to force additional compensation from the condemning authority. It’s important to start engines as soon as you learn that your land may be affected by a public project.

Understanding Your Legal Rights During the Texas Condemnation Process

In Texas, the condemning authority 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.” As a property owner, you have the right to take the matter before a court-appointed panel of Special Commissioners. This panel will determine the amount of compensation owed to you by the condemning authority, as well as any additional amount of compensation that may be justified for the reduction in value to your remaining property. What’s more, landowners who are not satisfied with the Special Commissioners’ award are entitled to file a formal objection with the court, which takes the matter to the civil court to be decided by a judge or jury. Ultimately, the main takeaway is that Texas property owners facing condemnation have several legal rights and options to explore before they accept the terms of the proposed condemnation. If you have heard rumors of a proposed construction or road improvement project that could affect your land, it’s important to reach out to an experienced and trusted Texas eminent domain lawyer who can help you understand your legal rights and options for securing the fair compensation you deserve.

At Sewell Sewell Beard LLC, we believe in putting the best interests of our clients above all else. We’re here to listen to your concerns, answer your questions, and guide you toward a successful resolution. We’ve been doing this for 40 years! If you have questions about an eminent domain or condemnation matter that could affect your property, please contact our Prosper, Texas office at (972) 777-5290 or our Jasper, Alabama office at (205) 544-2350 to get started with an experienced and knowledgeable condemnation attorney.