Governments must pay just compensation when exercising the right of eminent domain. Just compensation is usually the:
A) highest price the government can afford
B) price the landowner demands
C) fair market value
D) cash market value
E) bond market value

Question

Quizplus · Accepted Answer

Just compensation is typically defined as the fair market value of the property being taken. This means that the compensation should be based on what a willing buyer and a willing seller would agree upon in an arms-length transaction, taking into account the current market conditions and the specific characteristics of the property. While the landowner may have their own asking price, the government is not required to pay that amount and should instead base compensation on an objective assessment of the property's fair market value.

Governments Must Pay Just Compensation When Exercising the Right of Eminent