Eminent Domain Overview
What is Eminent Domain?
Eminent Domain is a power held by governments and certain private entities to take private property and put it to a public use.
What is Condemnation?
Condemnation is the legal action taking by a government or private entity to exercise its power of Eminent Domain.
Who has the power of Eminent Domain?
Many different entities hold this power. First and foremost, governments hold this power. This includes federal, state and local governments as well as water districts, school districts, and utility districts. Second, some private companies hold this power as well. These companies include railroad companies, utility companies, pipelines, and others.
When should I consult with an attorney?
You should consult with an attorney as soon as you learn that your property may be subject to condemnation. However, the process will move slowly until you receive an initial offer from the Condemnor. Once you receive that offer, things will really start to heat up.
Can I stop the condemning authority from taking my property?
Successful challenges to the condemning authorities right to take property are extremely rare. Case law from the Supreme Court of the United States down to Texas Courts and Statutes consistently hold that most of these entities have the authority to condemn your property. However, we will always make sure that they have the right to take your property before entering into any negotiations.
Do they have to pay me for my property?
Yes, they must pay you Just Compensation for your property. Determining Just Compensation is the essence of Eminent Domain Law. The Eminent Domain world relies on appraisers and other real estate and construction professionals to determine Fair Market Value.
Do I have to take their first offer to buy my property?
No, you do not. Further, in most cases, you should not take their first offer. Condemnors often hire Right of Way Companies and Landmen to make offers for your property. Often, these offers are not backed by an appraisal. Their strategy often relies on offering everyone along a project a low number, knowing most of them will accept it and move on. In a recent case handled by the Haack Law Firm, the appraisal finally produced by a pipeline company was nearly twice the price of the initial offer. The final settlement was even higher.
Do I have to let the Condemnor onto my property?
No, you do not. However, they will be able to petition a court to let them onto the property, and courts generally grant them this right. Therefore, it is not usually advisable to deny them access to the property. Further, denying them access to the property can hurt down the road when it comes to negotiations as over 90% of these cases settle before trial. It is advisable to consult with an attorney before denying them access or allowing them onto your property.
What happens if I do not accept their offer?
If you do not accept the condemning authorities offer, they will have to file a condemnation lawsuit. Once they file that lawsuit, the court will appoint three disinterested property owners in the county to sit as special commissioners. These special commissioners will hold a “trial” to determine the value of your property. However, if either the condemnor or property owner disagree with the value determined by the special commissioners, they can challenge it. Once challenged, the case becomes a normal legal case, with a judge and jury.
Do they take all of my property?
Condemnors only take what they need from your property. Usually, they are only taking some of your property. For instance, a road expansion by TXDOT will typically only encroach onto the boundary of your property touching the road and a pipeline will only take an easement under your property.
How is Just Compensation determined?
Just Compensation is determined by adding the Fair Market Value of the property being acquired to any damages caused by the condemnor to any remaining land.
How is Fair Market Value determined?
Fair Market Value is defined as the price the property would sell for on an open market. Obviously, you do not wish to sell your property so appraisers must pretend that you want to sell it. They typically find properties that are similar to yours and look at how much those properties sold for and make adjustments to correct for the differences.
How are damages determined?
Damages can be tricky and are highly dependent on your unique property. For instance, the condemnation may leave you with property that is too small to be developed or no longer compliant with zoning. Because these damages are unique, it is best to consult with an Eminent Domain Attorney before negotiating with anyone.
Does my lender have a right to eminent domain proceeds?
This is dependent upon the loan contract between you and your lender. In most modern loan contracts, they do have a right to these funds. However, they must apply it to the balance of your loan if they take the proceeds. Further, you can often negotiate with them to get some of the money upfront and the rest applied to your loan.
How are Eminent Domain Attorneys Paid?
Eminent Domain Attorneys take a percentage, usually around 33%, of the difference between the initial offer and the amount of money you ultimately receive.
Why should I hire the Haack Law Firm?
Rowdy Haack has been around the real estate market his entire life. His parents own and operate a Coldwell Banker in Waller, Texas. At the age of 19, Rowdy became a realtor to make money on the side during college. During law school, Rowdy studied Eminent Domain and interned with the Texas Attorney General, representing TXDOT. Upon graduation and passing the bar, Rowdy went back to the Texas Attorney General as a full-time attorney, exclusively handling eminent domain cases. This job required Rowdy to maintain a docket of 50-80 eminent domain cases at a time. After a brief stint with some other firms handling corporate litigation and insurance defense work, Rowdy decided to realize his dream of starting his own eminent domain firm.
As a solo attorney, Rowdy will be the person handling your case from start to finish. You will be able to reach him directly and get an update without having to schedule meetings or go through assistants. Rowdy will be your business partner in this endeavor to insure that you get truly Just Compensation for your property.
Call us now to schedule your consultation and take the first step in protecting your property.
