What does "just compensation" mean in a condemnation action?

If you have been subject to a condemnation proceeding on personal real property that you own, you have probably already been served with a notice of just compensation. Just compensation is the first step to the local or state government condemning your property through the eminent domain process. Just compensation is the amount of money that the local or state government has decided to offer you in return for your property, and it is ideally meant to be a sufficient amount to replace the property. So, that begs the question – how is just compensation determined by the government in a condemnation action, and what exactly is the definition of just compensation?

The Determination of Just Compensation in Condemnation Proceedings

Just compensation is determined by calculating the actual amount that the house or other property would be likely to bring at sale on the open market if advertised and marketed for a reasonable period of time, as well as if all of the potential uses of that property were advertised to make buyers aware.  

For example, if a property cost $200,000, but was only likely to bring $150,000, based on the potential uses (residential vs. commercial) after a ninety day period, the just compensation would likely be offered at $150,000. This is how the just compensation amount in a condemnation action is initially determined by the government.

Just compensation is a constitutional right, since the government cannot simply take your property without providing you with fair compensation for it. However, while you will be compensated for the taking of your home, if the government has decided to seize it through eminent domain, you are usually going to have to take the money and accept the sale even if you would prefer not to sell. 

Getting Help

If you are involved in a condemnation action and you have received an offer of just compensation that you do not believe is fair or adequate, you should consult with an attorney who can help you take the right steps to protect your Constitutional rights as protected by the Fifth Amendment.