What is the difference between just compensation and market value?

Just compensation and market value are two different methods used to determine the amount of money that should be paid when private property is taken by the government through eminent domain law in California. Just compensation describes the money the government must pay to the property owner in order to acquire the property for public use. It is the amount of money necessary to fairly compensate the property owner for the loss of their property. However, it does not necessarily amount to the full market value of the property. Just compensation is typically set at the fair market value of the property, but it could be more or less than that amount. Market value, on the other hand, is the amount of money a property would be worth in an open market if it were sold in an arms-length transaction between a willing buyer and a willing seller. It is the full market value of the property, as determined by a professional appraiser. This amount is generally higher than the amount of just compensation, as it is based on the current market conditions and the potential value of the property, not simply the existing use of the property. In summary, just compensation is the amount of money the government must pay to a property owner to acquire the property for public use, while market value is the amount of money a property would be worth if sold on the open market.

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What is the difference between just compensation and market value?

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