Landowners should know their rights before they are faced with an eminent domain action, and there are important steps they can take to ensure they receive fair compensation for their properties.
If the land is to be used for a transportation project, the Texas Department of Transportation says it historically has acquired around 4 out of every 5 parcels through the negotiation process.
However, if the two parties cannot reach an agreement, TxDOT may condemn the property through its power of eminent domain.
Here is a snapshot of how that works:
The condemnation cannot begin until after TxDOT has obtained all environmental approvals for a transportation project. That could take years to complete. Throughout this process, TxDOT holds multiple meetings with the public to discuss alternative project routes, alignments and designs.
When TxDOT determines that it needs the property for a project, it must obtain an independent third-party appraisal to determine the fair market value of the property.
State law requires that a state agency pay “adequate compensation,” which is defined by Texas courts as fair market value of the property plus any damages to the remaining property. The interest of taxpayers also requires that compensation from the state to a private property owner should not exceed fair market value.
After that, TxDOT aims to acquire the property through negotiations with the landowner.
After obtaining the independent appraisal, TxDOT attempts to personally meet with the landowner to discuss the appraisal and initial offer. These meetings allow the landowner to ask questions and view right of way maps and plans.
If the two sides cannot come to an agreement, TxDOT will request that the Texas attorney general’s office file a condemnation proceeding.
At that time, a county court at law judge or a district court judge appoints a special commission to determine the property value and damages. The special commission is made up of three disinterested property owners who live in the same county as the land subject to condemnation.
The special commissioners then schedule a hearing and TxDOT must provide the landowner with written notice of the hearing.
At the hearing, the special commissioners hear testimony from TxDOT and the landowner on their respective appraisal values and evaluate any damages to the owner relating to the property.
Landowners may choose to appear by themselves or with an attorney or an appraiser.
The special commissioners then determine the amount of adequate compensation and issue a Special Commissioners’ Award. If both the landowner and TxDOT are satisfied with the award, the award becomes final and the court will issue a judgment that transfers the property to TxDOT.
Either TxDOT or the landowner can file objections to the award. If objections are presented, the istrative process converts into a lawsuit, which can lead to a jury trial.
(Source: TxDOT 2025-2026 Educational Series)