What is the difference between just compensation and market value?

Just compensation and market value are two terms used in relation to property taken by the government through eminent domain laws in Virginia. The government uses eminent domain to acquire privately owned property for public use. Just compensation is the amount of money that the government is legally obligated to pay a property owner for the taking of private property. According to the Fifth Amendment of the US Constitution, just compensation must be equal to the full market and fair market value of the taken property. Market value, on the other hand, is the amount of money that a property is most likely to receive in a typical sale in the open market when the property owner is not forced to sell. Market value includes the current value of the property, based on factors such as location, size, and any improvements that have been made on the property. The difference between just compensation and market value is that the government is legally obligated to pay a higher price for a property taken through eminent domain than the owner would have received on the open market. The government must account for the potential loss in value due to the fact that the owner has been forced to sell their property and the disruption of their lives that the taking may cause.

Related FAQs

Is eminent domain constitutional?
Can I challenge the public use of eminent domain?
What is the cost to the government exercising its power of eminent domain?
Can the government take my property for private use?
What are the consequences of an uncompensated taking?
Can I receive compensation for the time spent on my property?
What is the difference between condemnation and a regulatory taking?
What is the power of eminent domain?
What constitutes a public use of eminent domain?
What are the rights of a tenant when a landlord’s property is taken?

What is the difference between just compensation and market value?

Related FAQs

Related Blog Posts