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

Just compensation and just compensation plus interest are two related concepts in Virginia’s eminent domain law. Generally, when a government entity exercises its power of eminent domain to take private property for public use, it is required to provide just compensation for the taking. Just compensation is the fair market value of the property taken from the property owner. This amount is determined by a valuation process and is typically based on comparable sales in the area. Just compensation plus interest is an additional payment that the government entity is sometimes required to provide in addition to the just compensation payment. This additional payment is designed to compensate the property owner for the time value of the money. In other words, just compensation plus interest takes into account the fact that the property owner has been deprived of the use of the money during the time it is tied up in the eminent domain process. The interest rate used to calculate this additional payment is generally based on the state or federal government borrowing rate.

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

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