US FederalWhat does 'just compensation' mean — is it always market value?
Just compensation under federal law generally means the fair market value of the property taken, but it may also include other measurable losses like severance damages or business goodwill in certain circumstances.
What the Law Says
The Fifth Amendment to the U.S. Constitution requires 'just compensation' when private property is taken for public use. While federal statutes don’t define 'just compensation' outright, they operate within that constitutional framework—and 40 U.S.C. § 3111 reflects federal acquisition procedures that presume title sufficiency and lawful valuation.
Just compensation is a constitutional requirement rooted in the Takings Clause of the Fifth Amendment: 'nor shall private property be taken for public use, without just compensation.' It ensures property owners are made whole—not enriched—by the taking.
Federal law does not mandate that just compensation equals only market value. Courts have long held it includes all elements of value that a willing buyer would consider, such as the property’s highest and best use, improvements, and sometimes severance damages (loss in value to remaining land after partial taking).
40 U.S.C. § 3111 governs federal agencies’ approval of title before acquiring real property. Though it doesn’t define 'just compensation,' it reinforces procedural rigor in acquisition—including ensuring title is sufficient and properly valued—consistent with just compensation standards.
Statutory TextThe head of an executive agency may acquire real property by purchase, condemnation, or donation only if the head of the agency approves the sufficiency of the title to the property.
— 40 U.S. Code § 3111 — Approval of sufficiency of title prior to acquisition
What to Do
Confirm whether the taking is for a federal public use (e.g., highway, military base, or infrastructure project).
Obtain an independent appraisal reflecting fair market value *and* any special value (e.g., business goodwill, access rights, or severance damages).
Review eligibility for additional payments under the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA) of 1970.
File timely objections or demand a jury trial on valuation if negotiating with the government fails.
Consult an attorney experienced in eminent domain before accepting any settlement offer.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.