What is the difference between just compensation and market value?

Just compensation and market value are two concepts related to eminent domain law in Texas, which governs the state’s ability to take private property for public use. Just compensation, sometimes also referred to as fair market value, is the money the state must pay to the property owner before taking their land. Just compensation is determined by considering various factors, such as what the owner paid for the land, whether the land was recently developed, and other costs related to relocating the owner from the property. The amount of just compensation must fairly compensate the owner for their loss. Market value is the estimated worth of a property. It is based on the value of similar properties in the area and can be determined by a real estate appraiser. In the context of eminent domain law, market value is the estimated price that a willing buyer should pay for a property, without any government influence. In summary, just compensation is the amount the state must pay to a property owner before taking their land, while market value is the estimated price of a property based on the value of similar properties in the area.

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What is the difference between just compensation and market value?

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