7 Costly Mistakes Texas Property Owners Make in Condemnation Cases (And How to Avoid Them)
Last updated on February 19, 2026
When the government targets your property for condemnation or eminent domain, the condemning authority has one goal: acquire your property for the lowest possible price. They have experienced right-of-way agents, government appraisers, and legal teams working to minimize what you receive.
Most Texas property owners facing condemnation for the first time don’t understand the process, don’t know their rights, and make preventable mistakes that cost them tens or hundreds of thousands of dollars in compensation they’re legally entitled to receive.
You can’t afford to learn condemnation law through trial and error. By the time most property owners realize they’ve made a critical mistake, the damage is already done—deadlines have passed, rights have been waived, and leverage has been lost.
Below are the seven most costly mistakes we see Texas property owners make in Houston and across the state—and how to protect yourself from each one.
TABLE OF CONTENTS
- Accepting the Initial Offer Without an Independent Appraisal ›
- Missing the 20-Day Deadline to Object to the Special Commissioners’ Award ›
- Negotiating Alone With Right-of-Way Agents Before Hiring an Attorney ›
- Failing to Claim All Damages You’re Entitled to Receive ›
- Valuing Property Based on Current Use Instead of Highest and Best Use ›
- Ignoring Lease Agreements and Condemnation Clauses (Commercial Landlords) ›
- Signing Documents From the Condemning Authority Without Legal Review ›
1. Accepting the Initial Offer Without an Independent Appraisal
This is the single most expensive mistake property owners make. The government’s “bona fide offer” sounds official and fair—but it’s calculated by appraisers who work for the condemning authority, not you.
These government appraisals are systematically low because they:
- Use conservative valuation methods that benefit the government
- Overlook commercial factors like visibility, access, and traffic counts
- Ignore highest and best use potential
- Fail to account for severance damages to remaining property
- Undervalue business income and relocation costs
Reality check: In our experience handling condemnation cases across Texas, initial government offers typically represent 30-60% of actual fair market value. An independent appraisal almost always reveals significantly higher compensation you’re entitled to receive.
WHAT TO DO INSTEAD: Never accept any offer until you’ve obtained an independent appraisal from a qualified expert who works for you. The cost of the appraisal is minimal compared to the additional compensation it typically uncovers.
2. Missing the 20-Day Deadline to Object to the Special Commissioners’ Award
This procedural mistake permanently destroys your case. In Texas statutory condemnation cases, you have only 20 days from receiving the special commissioners’ award to file written objections and demand a trial.
Miss this deadline and you lose:
- Your right to challenge the award in court
- Your right to a jury trial
- Your ability to present expert testimony
- Any chance of receiving additional compensation
The special commissioners’ award becomes final and binding, regardless of how unfair or inaccurate it is. Texas courts rarely grant extensions for this deadline, even for legitimate reasons.
WHAT TO DO INSTEAD: Contact a condemnation attorney immediately upon receiving a special commissioners’ award. Don’t wait “a few days” to think about it—every day that passes increases your risk of missing this critical deadline.
3. Negotiating Alone With Right-of-Way Agents Before Hiring an Attorney
Right-of-way agents seem friendly and helpful, but make no mistake: they work for the condemning authority, not you. Their job is to acquire your property for the lowest possible price, and they’re trained negotiators who do this every day.
What happens when you negotiate alone:
- Casual statements about your property value get locked in and used against you
- Remarks about business performance, maintenance issues, or property defects reduce your appraisal
- Comments about future plans or income eliminate damage claims you didn’t know you had
- You unknowingly waive rights or make concessions that can’t be undone
By the time you realize you need an attorney, you’ve already damaged your case and given away leverage you’ll never recover.
WHAT TO DO INSTEAD: Consult with a condemnation attorney before any substantive conversations with right-of-way agents. Once you have representation, all communication goes through your attorney, protecting you from making statements that hurt your case.
4. Failing to Claim All Damages You’re Entitled to Receive
Most property owners think condemnation compensation means “the value of land being taken.” That’s wrong—and this misunderstanding costs Texas property owners millions of dollars every year.
Damages property owners frequently fail to claim:
- Severance damages: Loss in value to your remaining property after a partial taking
- Loss of access: Reduced or eliminated access from road changes
- Cost to cure: Expenses to reconfigure parking, relocate utilities, install new signage
- Business damages: Lost income, relocation costs, business interruption (claimed separately in Texas)
- Damage to improvements: Structures, fencing, landscaping, irrigation
- Loss of parking or functionality: Parking spaces, loading areas, outdoor storage
- Remainder damages: Ongoing reduction in usability and value of property you keep
Government offers typically only address the land being taken—not these additional categories of damages. If you don’t identify and claim these damages early in the process, you may lose your right to recover them. In some cases, government actions damage your property without formally taking it through condemnation proceedings. These inverse condemnation and regulatory taking situations require you to initiate legal action to receive compensation.
WHAT TO DO INSTEAD: Work with an experienced condemnation attorney who knows how to identify every applicable category of damages specific to your property and ensure they’re properly documented, claimed, and proven.
5. Valuing Property Based on Current Use Instead of Highest and Best Use
Under Texas law, your property must be valued based on its highest and best use—not what you’re currently using it for. This distinction can mean hundreds of thousands of dollars in additional compensation.
Examples of missed value:
- Vacant land currently used for storage that could support commercial development
- Aging warehouse in an area where retail or multi-family is now feasible
- Residential property in a commercially-zoned corridor with redevelopment potential
- Industrial property in a gentrifying area where mixed-use is now viable
Determining highest and best use requires professional analysis of zoning regulations, market trends, development feasibility, and comparable sales of similar properties developed to their potential. Special considerations apply to institutional and special-use properties like churches, schools, healthcare facilities, and government buildings, which may have unique valuation challenges.
WHAT TO DO INSTEAD: Retain expert appraisers and market analysts who can document your property’s highest and best use potential with supporting evidence. Your attorney will ensure this analysis is presented effectively to commissioners or a jury.
6. Ignoring Lease Agreements and Condemnation Clauses (Commercial Landlords)
If you own retail or commercial property with tenants, your lease agreements determine how condemnation proceeds are divided—and failing to review these agreements immediately can create financial disasters.
Common lease agreement problems:
- Condemnation clauses that entitle tenants to a portion of your award
- Lease provisions requiring you to compensate tenants for relocation
- Terms that make you liable if tenants can’t operate due to the taking
- Conflicting lease language about who receives compensation for improvements
- Guarantees you made about access, parking, or signage now affected by the taking
Many retail and commercial property landlords in Houston and across Texas don’t review their leases until after settling with the condemning authority—only to discover they now owe tenants money they’ve already received and spent.
WHAT TO DO INSTEAD: The moment you receive notice of condemnation, provide all lease agreements to your attorney for immediate review. Early legal action protects both landlord and tenant interests and prevents costly disputes later.
7. Signing Documents From the Condemning Authority Without Legal Review
Documents from condemning authorities often contain language that waives your rights, locks in low values, or creates admissions that destroy your case. Once signed, these documents are extremely difficult—and sometimes impossible—to undo.
Dangerous documents property owners sign without understanding:
- Early possession agreements that grant access before you’re compensated
- Damage releases that waive claims you haven’t identified yet
- Appraisal acknowledgments that lock in government valuations
- Settlement offers disguised as routine procedural paperwork
- Right-of-entry permits with problematic release language
- Funds withdrawal forms that signal acceptance of inadequate awards
What seems like a simple formality—signing to acknowledge receipt of documents, granting access for surveys, or accepting partial payment—can have serious legal and financial consequences.
WHAT TO DO INSTEAD: Never sign anything related to condemnation without having an attorney review it first. Forward all documents to your lawyer immediately and wait for their approval before signing or responding.
Frequently Asked Questions About Condemnation Mistakes In Texas
Property owners have practical concerns when dealing with condemnation proceedings. The following questions address common issues that arise during the process.
I already talked to the right-of-way agent. Did I hurt my case?
No, but what you said matters. Right-of-way agents work for the condemning authority, and they may use your statements about property value, income, or future plans to justify a lower offer.
The good news: Speaking with an agent doesn’t waive your rights or lock you into anything. You can still negotiate and challenge their appraisal.
Our advice: Before any further conversations, consult with a condemnation attorney who can review what was discussed and protect your interests going forward.
Could I get less money if I reject their offer and go to trial?
Technically yes—if a court appraises your property lower than the government’s offer, you could receive less. However, this is rare when you have proper representation.
In our experience representing Texas property owners, we typically secure significantly higher compensation than initial offers. Government entities often low-ball knowing most owners will accept without legal help.
Bottom line: You risk nothing by getting a professional evaluation of your case before deciding whether to accept or fight.
Will fixing up my property increase my compensation?
It depends on timing and type. Improvements made after the government announces the project typically won’t increase your compensation—courts focus on value at the time of taking.
However, well-maintained property and legitimate upgrades completed before project announcement can strengthen your appraisal, especially:
- Structural repairs that maintain property condition
- Upgrades that reflect market expectations in your area
- Improvements to income-generating features (for commercial property)
Don’t make improvements solely to inflate value—appraisers and courts can identify strategic upgrades. Instead, focus on documenting your property’s existing condition and value.
Questions about your specific situation? Contact our team for a case evaluation.
How do I know if the government's offer for my property is fair?
Determining whether the government’s offer is fair can be challenging. This can involve a variety of steps, including the following:
- Get an independent appraisal from a qualified professional.
- Research recent comparable sales in your area.
- Consider the property’s potential future value.
- Consult with an experienced eminent domain attorney.
- Consider any other costs you might experience due to relocating, including the cost of moving or the impact that leaving the property could have on your business.
Remember, you are entitled to “just compensation,” which should reflect the property’s fair market value.
Are there any alternatives to eminent domain in Texas?
Depending on the project, government entities might be able to move forward with their projects without taking certain properties. These alternatives include:
- Negotiated sale: The government can attempt to purchase the property through voluntary negotiations.
- Exchange properties: The government might exchange the desired property for another government-owned property.
- Easements or partial takings: Instead of taking full ownership of the property, the government may seek limited rights to use a portion of that property.
- Redesigning projects: In some cases, the government might modify plans to avoid taking certain properties.
Protecting Texas Property Owners for More Than 30 Years
At McFarland PLLC, we exclusively handle condemnation and eminent domain cases across Texas. Our team has more than three decades of combined experience representing property owners against government entities and private condemning authorities at every level. We know the costly mistakes property owners make—because we’ve spent decades helping clients avoid them and recovering millions in additional compensation that would have been lost without experienced representation.
Our founder, Charles McFarland, is board certified in Civil Trial Law and has achieved more favorable outcomes for landowners than any other attorney in the region, including securing the largest jury verdict against the state in condemnation history.
Don’t Leave Money on the Table
Condemnation is not a DIY project. The cost of making these mistakes far exceeds the cost of hiring experienced legal representation.
If your property in Texas (or elsewhere) is facing condemnation, our team at McFarland PLLC is ready to evaluate your case, explain your options, and protect your rights throughout the condemnation process. Contact us at 713-325-9700 or reach out online to discuss your situation and learn how we can assist you.