What is the difference between just compensation and fair market value?

Just compensation and fair market value (FMV) are important concepts in eminent domain law in Nebraska. Just compensation is the amount of money a government must pay a property owner when it takes their land for a public need. FMV is the amount a property would bring on the open market if offered for sale. When the government takes a property for a public need, it must provide just compensation, though it can usually choose the exact amount. The amount of just compensation is usually based on the fair market value of the property, but it may also include costs of relocation and other losses suffered by the owner. Just compensation is intended to ensure the property owner does not suffer an unfairly large loss due to the government taking their property. Fair market value, on the other hand, is an independent assessment of the worth of a property. It is an estimate of what a willing buyer and a willing seller would agree on in a market transaction. FMV is also used to assess taxes, insurance rates, and mortgages. It is generally determined by third-party professionals, such as appraisers, who take into account the size, type, quality, and location of the property. In short, just compensation is the amount of money the government must pay a property owner when it takes their land, while fair market value is the estimated worth of the property in an open market. Just compensation is intended to compensate the property owner for their losses, while fair market value is used to assess taxes, insurance rates, and other important matters.

Related FAQs

What is the timeline of the eminent domain process?
What is the difference between a condemnee and a condemnor?
What is the procedure for resolving a dispute over compensation?
What are the rights of a tenant when a landlord’s property is taken?
What is eminent domain?
What are my rights under eminent domain law?
What is the eminent domain process?
What is the difference between eminent domain and inverse condemnation?
What is the difference between eminent domain and zoning laws?
Can I receive compensation for the time spent on my property?

What is the difference between just compensation and fair market value?

Related FAQs

Related Blog Posts