What compensation must the government pay when it takes private property?

What the Law Says

The Fifth Amendment to the U.S. Constitution is the foundational source for the government’s obligation to pay compensation when it takes private property. While 40 U.S.C. § 3111 governs internal federal acquisition procedures—including title review—it does not define or set the amount of compensation. That duty flows from the Constitution, not this statute.

The U.S. Constitution’s Takings Clause states: 'nor shall private property be taken for public use, without just compensation.' This applies to all levels of government but is enforced against federal action directly through the Fifth Amendment.

40 U.S.C. § 3111 deals only with internal federal real estate acquisition logistics. It requires federal agencies to obtain approval of title sufficiency before acquiring property—but says nothing about valuation, compensation standards, or claimant rights.

In practice, just compensation is almost always determined as the property’s fair market value at the time of the taking—what a willing buyer would pay a willing seller, with neither under compulsion to buy or sell.

Statutory Text

The head of an executive agency may acquire real property for the agency by purchase, condemnation, or other appropriate means.

— 40 U.S.C. § 3111 — Federal property acquisition

What to Do

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