What is the difference between a voluntary sale and a forced sale?

The difference between a voluntary sale and a forced sale in Texas is significant. A voluntary sale is an agreement between two parties to transfer ownership of real property from one party to the other with both voluntarily agreeing to the terms and conditions of the sale. This includes the sale price, closing costs, and possibly other terms and conditions agreed upon between the parties. On the other hand, a forced sale occurs when the government uses its power of eminent domain to take property rights away from a private landowner and transfer them to another private party. In Texas, this power is used for public uses such as constructing a highway, school, or other public projects. The government must provide “just compensation” for the taking, but this is often determined through legal proceedings and may not be the same as what a voluntary sale would have yielded. Furthermore, landowners have significantly less say in the terms of a forced sale, as the government dictates the sale terms and conditions and the landowner is generally unable to negotiate.

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What is the difference between a voluntary sale and a forced sale?

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