Your land. Your home. Your business. Then one day, the government decides it needs your property for a highway expansion, utility project, or redevelopment plan. The law gives them the power to take it under eminent domain—but they must pay you just compensation.
But what is just compensation in eminent domain? Who determines what your property is worth? And how do you know if the offer is fair?
Government agencies claim to offer full compensation, but the initial offer rarely accounts for everything. Your property is more than just a plot of land or a building. It is an investment, a source of income, or a family home. Accepting less than what you are owed is not an option.
Thorsnes Bartolotta McGuire has spent decades protecting California property owners from unfair government takings. When agencies undervalue land or attempt to lowball compensation, we step in. Contact our team online or by calling our offices at (619) 236-9363.
What Is Eminent Domain?
Eminent domain allows the government to take private property for public use. This can include infrastructure projects like roads, bridges, and airports, or redevelopment initiatives aimed at economic growth.
Property owners cannot refuse eminent domain, but they can challenge the amount of just compensation they receive. The law requires fair payment, but determining what is truly "just" is often a battle.
Without legal representation, property owners risk receiving far less than what their land is worth. The first offer is rarely the best one, and challenging an unfair valuation is the only way to ensure fair compensation.
What Is Just Compensation?
The just compensation definition is simple: Property owners should receive payment equal to the full and fair market value of their property. However, compensation is more than just the price of the land itself.
Just compensation should include:
- Fair market value based on the highest and best use of the property.
- Damages to remaining property if the taking impacts what is left.
- Relocation costs for homeowners or businesses forced to move.
- Lost income if the taking affects a business or rental property.
- Replacement value if existing structures or improvements must be rebuilt elsewhere.
Government agencies often base their offers on outdated appraisals or incomplete assessments. Their valuations frequently leave out the indirect costs that property owners will face. Property owners often ask, "what is just compensation?" The answer is more than a number—it must reflect every financial loss caused by the government’s taking.
How Just Compensation Is Determined in Eminent Domain
Determining what is just compensation in eminent domain requires a legal and financial evaluation of multiple factors. While the government may claim to offer fair market value, their calculations often fail to reflect the true worth of the property.
The main factors that determine compensation include:
- Market comparisons. Property value is assessed based on recent sales of similar properties in the area.
- Highest and best use. The valuation must consider the property’s full potential, not just its current use.
- Impact on remaining land. If the government only takes part of a property, the reduced value of what remains must be factored in.
- Relocation expenses. If a home or business must be relocated, all associated costs should be covered.
- Business losses. If a business suffers financial losses due to the taking, compensation should reflect those damages.
Government agencies hire appraisers who often favor the agency's valuation. Independent valuations from qualified experts can reveal a much higher property value.
Government agencies prioritize their interests, often offering property owners less than what they are owed. Eminent domain laws require fair compensation, but low initial offers and undervalued assessments put landowners at a disadvantage.
Thorsnes Bartolotta McGuire stands up to unfair eminent domain practices, ensuring property owners receive the compensation they deserve. Contact our team online or by calling our offices at (619) 236-9363.
Eminent Domain Compensation Examples
Real-world scenarios can help explain why challenging an unfair offer is so critical. These eminent domain compensation examples demonstrate how just compensation is determined:
A Business Owner Loses Commercial Property
A city plans to widen a highway, requiring a portion of a retail property. The initial offer covers only the land value, but the business owner realizes it does not account for lost revenue, moving expenses, or the cost of re-establishing operations in a new location. By seeking an independent appraisal and legal guidance, the owner proves that the business value has been severely impacted, leading to additional compensation beyond the land’s assessed value.
A Homeowner Faces Partial Property Loss
A county seizes part of a residential lot for a new utility project, reducing the yard space and blocking what was once a scenic view. The government’s initial valuation only accounts for the square footage taken, but the homeowner argues that the loss also affects the overall property value. A more comprehensive assessment includes these indirect damages, increasing the compensation to reflect the true impact of the taking.
These examples demonstrate why property owners should look beyond the surface of an initial offer. Just compensation must account for all losses—both direct and indirect.
Non-Monetary Relief Is Not an Option
Eminent domain laws require financial compensation, but they do not require the government to provide replacement land or relocation assistance.
- Property owners forced to move must find a new home or business location on their own.
- The government does not guarantee a similar-sized or equally desirable replacement property.
- Businesses forced to relocate are responsible for rebuilding their operations elsewhere.
Securing the highest possible compensation is critical because non-monetary relief is not an option. Property owners should never assume the first offer will be enough to cover their losses.
Thorsnes Bartolotta McGuire Protects Property Owners in Eminent Domain Cases
Government agencies have attorneys and appraisers working to justify lower valuations. Property owners deserve an equally aggressive legal team to demand fair compensation.
For decades, Thorsnes Bartolotta McGuire has held agencies accountable when they attempt to take land without paying its full value. Our firm has secured over $2 billion in compensation for property owners across California.
When the government comes for your land, you do have rights. Do not accept an offer without knowing its full value. Contact our team online or by calling our offices at (619) 236-9363.