Compensation For Texas Eminent Domain

Texas Eminent Domain

Many landowners in Texas face increased pressure from pipeline companies that want to acquire property rights through eminent domain proceedings. 

As energy infrastructure continues to expand throughout the state, many property owners face challenging legal procedures when corporations approach condemnation threats or easement offers. 

It’s known that pipeline companies have great legal power in the state, but what people fail to remember is that landowners also have their rights. Everything depends on learning ways these companies can use eminent domain, the compensation you deserve and how to protect your interest from beginning to end. 

This article will shed more light on compensation in Texas eminent domain while exploring the condemnation process step by step. Before taking your property, pipeline companies must follow specific procedures. 

Steps Pipeline Companies Follow 

The first step most companies take is voluntary negotiations, in which they offer to purchase easement rights at the price they proposed. They will also send formal notice requirements in the event talks fail, including written notice of their intent to condemn.

The notice usually includes a specific property description, a public use justification, and other essential details required by Texas Property Code Section 21.0113. Next, they will file the condemnation lawsuit in the county where the property is located, and you will name yourself as the defendant in the condemnation action. 

The court will appoint three disinterested landlords to serve as special commissioners. These people will analyze the property to determine the amount of compensation for Texas eminent domain to receive. There will be a special commissioner’s hearing where you have the right to present evidence of the real estate value and damage caused by the proposed taking. The award will be issued by the commissioners, and the pipeline companies are required to deposit with the court before getting access to your premises.

Your Right to Object and Demand a Jury Trial

According to Texas law, multiple opportunities cannot challenge condemnation proceedings. The Texas Property Code Section 21.014 states that you can inject the special commissioners’ award and seek a jury trial within twenty days after receiving the award notice. 

Jury trials provide many benefits, as the jury will reward higher compensation than the special commissioners. What’s more, Texas juries consider factors that will often be overlooked, like emotional attachment to family land or special characteristics of the property. 

What Compensation Should You Receive?

Texas adheres to the first market value when it comes to condemnation compensation, but when calculating this, some pipeline companies often undervalue some important components at their initial offer. 

To give just compensation involves the willing buyer paying the seller for an arms-length transaction. This includes easement value, which is the market value of the land being permanently encumbered, severed, and temporarily damaged. 

Click here to learn more about compensation considerations.

Factors That Increase Real Estate Value

Texas Eminent Domain

A lot of factors can increase compensation award, including: the location and accessibility, as properties that have highway frontage, development potential or recreational value tend to fetch higher prices than remote lands if there are existing improvements like buildings, fenders, irrigation systems and other enhancements that cannot be replaced but add great value to the compensation award. 

Special usage can also be considered in cases where your real estate asset serves important purposes like organic farming, hunting operations, historic preservation and many more; all these may get you higher compensation. 

Future development rights are also another factor because pipeline easement can permanently reduce your ability to develop the property, which can further decrease its long-term value and investment potential. 

Severance Damages: Often the Largest Component

A lot of landowners overlook severance damages while focusing on the easement of the strip, which can reduce their asset value. 

Likely easements can greatly affect real estate value through different means, including access limitations, development restrictions and environmental concerns. 

Rural property pipeline easement compensation calculations must include all important aspects, extending beyond the physical pipeline corridor. 

Ways pipeline easement can affect properties include: access limitations as they will cut some of the real estate portion, or complicate farm equipment movement. 

Permanent restrictions on building, planting trees or other developments around the easement areas. Visual and economic impacts, as well as safety concerns, are associated with being close to high-pressure lines, which can minimize the property’s desirability. 

Visit https://statutes.capitol.texas.gov/Docs/PR/htm/PR.21.htm#21 to learn about the premises exempt from eminent domain in Texas. 

Conclusion 

When the government condemns your property through eminent domain, they are legally required to pay for it. 

Fortunately, the United States Constitution and the Texas Constitution give you the right to receive just and adequate compensation for your property that is taken for public use. 

This will ensure that you get paid for your property value as if the taking never happened. Thankfully, there are certain factors that can even increase the value location and accessibility, development potential and many more. 

By Lesa