The Texas Condemnation Process: A Guide For Commercial Property Owners

Last updated on February 17, 2026

Condemnation actions can place serious pressure on property owners across Texas. When a government entity or authorized private party seeks to take land for public use, the legal process moves quickly, and deadlines matter. Whether the property is residential, commercial or industrial, each stage of the condemnation process can affect value, timing and long-term use. Working with an experienced attorney early helps protect ownership rights, challenge improper actions and pursue full compensation under Texas law.

At McFarland PLLC, we represent landowners in Houston, Texas, and statewide who are confronted with condemnation actions. Our firm brings more than 30 years of collective experience handling eminent domain and condemnation cases. Our founding attorney, Charles McFarland, is board-certified in civil trial law by the Texas Board of Legal Specialization, a distinction earned by very few lawyers in Texas and achieved through extensive trial work in condemnation matters. He has obtained more jury verdicts for landowners than any other attorney in the state, including one of the largest jury verdicts ever awarded in a Texas condemnation case.

Phase 1: Prelitigation And Administrative Phase

This phase sets the foundation for the entire case. Decisions made here directly affect leverage, compensation and litigation posture.

Step 1: Notice of Intent and Appraisal

The government inspects the property and issues a certified appraisal stating its opinion of value.

Property owners should not allow inspection without an attorney present when possible. Early access can affect valuation evidence later in the case.

Step 2: The Bona Fide Offer

The government sends a final written offer based on its appraisal. Property owners can accept or reject. If they accept, the case ends. This outcome is rare for commercial or high-value properties because offers frequently undervalue the land.

However, if the offer is rejected, the government files a Petition for Condemnation, and a lawsuit formally begins.

Step 3: Special Commissioners’ Hearing

Three local landowners are appointed as special commissioners to hear valuation evidence. The commissioners issue an Award of Damages based on the evidence presented.

At this stage, the award is not final. What happens next is one of the most important moments in the Texas condemnation process timeline. LEARN MORE ►

Phase 2: The Critical Transition (The Pivot Point)

This phase determines whether the landowner can challenge the award in court or allow it to become final. Acting promptly during this window is essential, as it directly impacts the property owner’s rights, leverage and potential compensation.

Step 4: The Objection Window (Critical Deadline)

Either party, the property owner or the government, may formally object to the Award of Damages issued by the Special Commissioners. Filing an objection moves the case from the administrative phase to formal litigation, preserving the right to a trial.

Objections must be filed on the first Monday following 20 days after the clerk sends notice of the award. This deadline is strictly enforced, and missing it can make the award final and binding.

This phase is critical because it sets the stage for litigation. Taking the right steps here helps ensure the property owner maintains leverage and protects financial interests.

Phase 3: The Judicial Phase (Civil Litigation)

This stage establishes possession, financial protections and the framework for resolving the final compensation. How these initial steps are handled can influence the outcome at trial.

Step 5: Deposit and Possession

Once the objection is filed and the case progresses, the government deposits the award amount into the court registry.

On the date of taking, the government acquires legal title and may begin construction, demolition or other improvements on the property. This date is important because it marks the point when possession legally transfers, even if the final value has not yet been determined.

Landowners can withdraw the deposited funds, subject to certain legal protections, to cover relocation, operational or business expenses. A lawyer helps ensure that funds are accessed correctly and without compromising the case.

Step 6: Discovery and Mediation

Discovery allows both sides to exchange evidence, depose experts and submit updated appraisals reflecting conditions on the date of taking.

Mandatory mediation or settlement conferences provide an opportunity to resolve the case without trial. Settlement discussions during this phase can yield a favorable resolution, but only if backed by thorough analysis and legal strategy.

Step 7: Trial De Novo

If no settlement is reached, the case proceeds to a full civil trial, either before a judge or a jury, to determine the final compensation owed to the landowner.

The court issues a final judgment that sets the property’s value and awards damages. At trial, attorneys present all evidence, including expert testimony, appraisal reports and documentation of loss, to help ensure the property owner receives full and fair compensation.

Defend Your Property With a Condemnation Lawyer in Houston, Texas

The Texas condemnation process timeline is rigid, but it is not one-sided when landowners act promptly. Each phase presents opportunities to protect value and challenge improper government actions.

If your property in Houston, Texas, or anywhere statewide is facing condemnation, contact McFarland PLLC for immediate legal representation. Our lawyers are ready to protect your rights, pursue fair compensation and represent you through every phase of the condemnation process. Call 713-325-9700 or use the online contact form to schedule an appointment.