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Understanding Eminent Domain Compensation in Texas

Compensation depends on the property, on how much of it is being acquired, and on what the project does to what remains.

What compensation means in Texas

Adequate compensation under Article I Section 17 is measured in money, at market value, as of the date the law fixes for your case. For a whole taking that is the value of the property. For a partial taking Texas uses the before and after method, and that single choice drives almost every dispute that follows.

Fair market value

Market value is the price the property would bring when offered for sale by one who desires to sell but is not obliged to, and bought by one who desires to buy but is under no necessity of buying. It is measured for the highest and best use the land could lawfully be put to, not only the use it has today.

  • Comparable sales, and how each was adjusted.
  • Highest and best use, including a reasonable probability of a change in use.
  • Location, size, frontage, access and topography.
  • Improvements, fences, wells, pens, roads and structures.

Partial taking

When only part of the tract is acquired, the measure is the market value of the whole immediately before the taking, against the market value of the remainder immediately after, with the project in place. The difference is the compensation. It covers the strip and the harm to what is left in one figure.

Before and after

An appraisal that prices only the acres taken has answered half the question. The remainder analysis is the other half, and on working land it is usually the larger half.

Remaining property

Remainder or severance damages capture the loss in value to the land you keep. A tract cut in two, a pasture separated from its water, a building site with a corridor across it, or a remainder too small or too oddly shaped to use as before.

Loss of access

Access is part of the value of land. A closed or relocated driveway, a raised median that removes turning movements, a frontage road or a grade change that lengthens the approach can all reduce what a tract is worth, particularly a commercial one.

Easement impact

An easement leaves you holding title while transferring a right of use. The measure is the difference in value before and after the easement is imposed. What you can build, plant, store or cross over the strip afterwards is set by the easement terms, which is why those terms carry real money.

Business impact

Where a business operates on the property, the taking can reach the business as well as the land. What is recoverable depends on the facts and on how the claim is framed, and it is an area where Texas law is narrower than some owners expect. Treat any figure you are quoted as something to verify rather than assume.

Who pays for the appraisals

The entity pays for its own, and section 21.0113 requires a certified written appraisal to support the final offer. Landowners commonly commission their own appraisal, especially on partial takings of working property, because the entity appraiser rarely understands how the land is actually used.

By property

Compensation by Property Type

The same measure applies to every owner. What changes is which part of it carries the money.

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Related resources

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More Texas resources are on the way. New guides publish every week.

Common questions

About compensation

How is my Texas property valued in a taking?

By market value, for the highest and best use the land could lawfully be put to. On a partial taking, by the before and after method comparing the whole tract before with the remainder after.

What are remainder damages?

The loss in value to the land you keep, caused by the taking or by the project built on the part acquired. On working land they are frequently larger than the value of the acres taken.

Does Texas pay for lost business goodwill?

This is narrower in Texas than in some states and depends heavily on the facts. Treat any figure you are quoted as something to verify with a Texas attorney rather than assume.

Do I need my own appraiser?

Not in every case. On a partial taking of a ranch, farm or commercial site, an independent appraisal is often what changes the number, because it captures how the land is actually used.

When is the property valued?

The valuation date is set by law and depends on how the case proceeds. Because it fixes the market conditions that apply, it is one of the first things to confirm.

Next step

Understand Your Property Situation

Check the offer you received against what Texas compensation is meant to cover.

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