What is the difference between just compensation and just compensation plus interest?

Just compensation is the term used to describe the amount of money the government must pay when it takes private property for public use through the process of eminent domain. This amount of money is designed to reimburse the property owner for any losses incurred, including the value of the property itself as well as other financial losses such as relocation costs. Just compensation plus interest is an additional amount that is added to just compensation. It is designed to make up for the amount of money that the property owner would have earned from the property while the government was negotiating the terms of the purchase. This extra compensation is typically based on the current interest rate at the time of the transaction. In the state of Texas, just compensation must be determined before the property can be taken. The landowner must be provided with a written offer that includes the amount of compensation plus interest. If the landowner accepts the offer, then the property will be taken, and the compensation and interest will be paid. If the landowner rejects the offer, the case will likely move to court, where a judge will ultimately decide what constitutes just compensation, as well as any additional interest that needs to be added.

Related FAQs

What is the difference between a public purpose and a public use?
What is a taking?
How does the valuation process work?
What is the difference between a public use and a public welfare exception?
Can private individuals use eminent domain?
What are the different types of compensation available?
What is the timeline of the eminent domain process?
What is the difference between a public use and a public benefit?
What are the elements of a taking?
What are the rights of a tenant when a landlord’s property is taken?

What is the difference between just compensation and just compensation plus interest?

Related FAQs

Related Blog Posts