COMPENSATION FOR REAL ESTATE TAKEN
When Real Estate is taken by the government or other entity through the government’s powers of Eminent Domain, Missouri and Federal Constitutions and Eminent Domain Law require that the Property Owners receive “just compensation” for their loss.
Determining the amount of “just compensation” is difficult and requires special knowledge of Real Estate and Land Use Law. The Gilroy Law Firm’s Eminent Domain lawyers have studied this area of the law for 25 years.
Missouri and Illinois Law require that the Real Estate be valued “before the project” for which it is being acquired. And those laws also require that the Real Estate be valued “after the project” (in partial takings.) The difference in those two values is the “just compensation” that is owed to a Property Owner from the government for the taking of the Real Estate and/or easement for right of way.
When preparing Eminent Domain cases, The Gilroy Law Firm insists that the Property be valued, in both instances, at the “Highest and Best Use”, which is a term used by appraisers. Factors to be considered when determining Highest and Best Use include:
- Whether the proposed use is legally permissible. Property Owners may look to current zoning and land use laws as well as such laws that may be enacted in the reasonably near future.
- Whether the proposed use is physically possible.
- Whether the proposed use is economically feasible.
- What proposed use is maximally productive.
Once Highest and Best Use is determined, then the valuation of the Real Estate can be determined. In valuing the Property, The Gilroy Law Firm recommends that the “Fair Market Value”, as defined in Missouri and Illinois Law, be analyzed.
In Missouri, "Fair Market Value" is defined as the value of the property as compared to confirmed sales in the area, capitalization of income, and replacement cost less depreciation, singularly or in combination, as appropriate, and additionally considering the value of the property based upon its highest and best use, using generally accepted appraisal practices.
The law requires that the Property Owner, not the government, prove the amount of “just compensation” to be received in Eminent Domain cases. So, Property Owners are best served by seeking legal counsel with extensive experience in the area of Eminent Domain.
The Gilroy Law Firm has twenty-five (25) years experience helping Property Owners establish and prove the Fair Market Value of their property for the purposes of receiving “just compensation” from the government.
Should you desire The Gilroy Law Firm’s legal advice and assistance with regard to your Eminent Domain Case, we look forward to your telephone call to schedule a Working Meeting with our firm.
To speak with an experienced Saint Louis Eminent Domain lawyer, call The Gilroy Law Firm at 314-965-3536, or use our quick contact web form.