How Changing Market Conditions May Affect Those Facing Condemnation in Texas
The process of condemnation, or eminent domain, can have a significant impact on the value of a residential or commercial property and on the owner’s financial situation. In addition, changing market conditions such as residential and commercial property valuations and interest rates can further complicate the process for those facing condemnation in Texas. It’s critical to be familiar with these matters if your property is set to be taken.
Essential Information About Condemnation in Texas
Condemnation occurs when the government acquires private property for public use. Both the Fifth Amendment of the U.S. Constitution and the Texas Constitution grant the government this power.
Reasons the government may execute this power include (but are not limited to):
- Building public infrastructure such as roads, rail lines, government buildings, and bicycle lanes
- Environmental protection
- Urban renewal
- Improving public safety
- Building military bases
When the government plans to condemn a property, it will typically make an initial offer to the property owner and then a written final offer based on an appraiser’s determination of fair the property’s market value. Often the property value determined by the appraiser does not fully take into account the true value of the property or loss of value incurred by damage to the landowner’s remaining adjacent property. The government will take possession of the property and compensate the owner if the owner chooses to accept the offer. If the property owner disputes the offer and negotiations for a higher price fail, then the government will initiate a condemnation lawsuit. Depending on the circumstances, the landowner may be able to fight the condemnation in court and improve their outcome.
If your property is being taken and you believe the offer is not at fair market value or you believe the property is being taken for invalid reasons, a Texas eminent domain attorney may be able to help. It’s important to understand your legal options if a government entity or business is attempting to acquire your property through eminent domain. At Gregor Wynne Arney, our eminent domain attorneys are proven litigators who can help you understand where the government’s case may be weak and develop a strategy to fight back.
Even if you do plan to cooperate with an entity acquiring your property through eminent domain, you want to be certain the compensation you’re receiving for it is fair. This is another matter our attorneys can help you address.
Requirements for Condemning a Property in Texas
To condemn a property In Texas, the government or another entity must:
- Demonstrate that the condemnation is necessary for a public purpose
- Demonstrate the property owner is being justly compensated for the property
- Provide notice to the property owner and allow them the opportunity to challenge the condemnation in court
Condemnation can have a significant impact on property owners, as it may result in the loss of their property, their business, or a reduction in property value. However, it is important to note that the government does have the power to condemn property for public use, and property owners may have limited options to prevent it. It’s wise for property owners to consult with experienced attorneys to ensure their rights are protected throughout the condemnation process.
Changing Market Conditions May Impact Those Facing Condemnation in Texas.
One of the most significant factors that may affect those facing condemnation in Texas is property valuation. The value of a property is determined by several factors, including:
- Current real estate market supply and demand
- Curb appeal
- Income generation
If a property is currently facing condemnation, it’s vital to consider that market conditions may have changed substantially since the property was acquired or last appraised by the owner.
The property owner may benefit by having a new appraisal done to accurately determine the property’s value to determine just compensation.
Another factor that can affect those facing condemnation in Texas is interest rates. If the property owner is offered a lump sum payment for their property, they may consider investing the money to generate income. However, if interest rates are low, the investment returns may be lower than expected. Conversely, if interest rates are high, the investment returns may be higher, but this can also make borrowing money more expensive.
Property owners facing condemnation in Texas may need to carefully consider their options and consult with financial advisors to determine the best course of action. They may also want to consider the tax implications of receiving a lump sum payment and investing the money.
Legal Considerations for Those Facing Property Condemnation in Texas
Market conditions aren’t the only factors potentially affecting Texans whose properties may be condemned. There are also legal considerations to account for. Property owners may want to consult with an attorney familiar with Texas condemnation law to ensure that their rights are protected.
Examples of legal considerations to be aware of may include zoning regulations and other land-use issues. Property owners facing condemnation may want to consider whether their property is zoned for a particular use, and whether the government’s use of the property is in compliance with local zoning regulations.
Be aware, rezoning is a fairly common practice in Texas as it allows local governments and property owners to adjust the land use designations of specific areas within their jurisdiction. Local governments may rezone an area to accommodate changes in:
- Economic growth
- Other factors affecting the area’s development
It’s therefore possible that changes to a jurisdiction’s zoning regulations could impact a property facing condemnation. Once more, it’s smart to coordinate with Texas condemnation law experts if you have questions about this issue.
Facing Condemnation in Texas? What You Need to Know
Whether yours is a commercial or residential property, if the government in Texas has chosen to condemn it, you should understand the manner in which changing market conditions could impact your circumstances. Property valuation and interest rates can affect the financial impact of the condemnation, while legal considerations may affect your rights and overall options as a property owner.
Do you need assistance from a Texas condemnation attorney who can help you navigate these complex issues? If so, Gregor Wynne Arney PLLC, based in Houston, is available to help. Learn more by contacting us online or by calling us at (832) 390-2644.