What is the difference between just compensation and market value?

Just compensation and market value are two terms related to eminent domain law in North Dakota. Eminent domain is the power of the state or other public entity to take private property for public use. Just compensation is the amount of money a property owner should receive in exchange for property taken for public use. This amount should be what the owner would get in a fair, open market transaction. The purpose of just compensation is to make the property owner “whole” after their property is taken. Market value, on the other hand, is the amount of money the property owner would receive in a voluntary transaction, such as a sale of the property. The market value is determined by a variety of factors, such as the size and quality of the property, potential uses of the property, and the current market conditions. The key difference between just compensation and market value is that the former is based on fairness and should make the owner “whole” after their property is taken, while the latter is based on the current market conditions and is what the owner would get in a voluntary transaction.

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What is the difference between just compensation and market value?

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