North Carolina focused educational resource on eminent domain and property rightsGet Help
Home / Eminent domain compensation in North Carolina

Compensation

Eminent domain compensation in North Carolina

What compensation covers, and the measure that makes North Carolina unusually favourable on partial takings.

Get Help Start with fair market value

Compensation in North Carolina is built from the value of what is taken and the effect on what you keep. On a partial taking, which is the commonest pattern, the second question is frequently worth more than the first.

The statutes are explicit about how this is measured, and the measure is worth reading carefully because it gives owners a choice of two calculations rather than one.

The greater of two figures. Section 40A-64 sets compensation for a partial taking as the greater of the amount by which the fair market value of the entire tract immediately before the taking exceeds the fair market value of the remainder immediately after, or the fair market value of the property taken. For Department of Transportation cases, section 136-112 sets the equivalent measure.

The short answer

Start with the value of the interest acquired, then ask what the project does to everything you keep, then take whichever figure is greater. Skipping the second calculation is the most common way value is lost.

The components

Fair market value

The base measure and the assumptions inside it.

Read more

Partial taking

Where a strip is acquired and the rest remains.

Read more

Remaining property

How the remainder is valued after the project.

In preparation

Loss of access

Driveways, crossovers and turning movements.

Read more

Easement impact

What a corridor easement permits and costs.

In preparation

Business impact

Effects on an operating business.

In preparation

How compensation is built

1

Identify the interest acquired

Fee, permanent easement or temporary construction easement. Each carries a different value.

2

Establish highest and best use

The assumption that moves the number most.

3

Value the property taken

Market evidence applied to the interest acquired.

4

Value the entire tract before the taking

The whole property as it stood.

5

Value the remainder after the taking

The same land with the take made and the project built.

6

Take the greater figure

Section 40A-64 gives the owner whichever of the two measures is larger.

7

Add interest where it applies

Section 136-113 treats interest as part of just compensation in Department cases.

Where value goes missing

Only one calculation was run

If the appraisal values the strip and stops, the section 40A-64 comparison has not been performed at all.

Access treated as unchanged

An appraisal assuming circulation is unaffected, against plans that relocate a driveway or close a crossover, understates the loss.

The remainder analysed thinly

Before and after valuation of the land you keep is where partial taking cases are won or lost.

A recorded corridor map ignored

Where a Map Act corridor restricted your land, the Supreme Court has held that damages are measured by the difference in fair market value immediately before and immediately after the recording.

Frequently asked questions

How is a partial taking valued in North Carolina?

Section 40A-64 gives the greater of the before and after reduction in the fair market value of the entire tract, or the fair market value of the part taken.

Is the measure different for highway takings?

The Department of Transportation operates under Chapter 136, where section 136-112 sets the measure of damages. For a partial taking it works on the difference between the value of the entire tract before the taking and its value afterwards.

Do I get interest?

Section 136-113 treats interest as part of just compensation in Department of Transportation cases.

Is compensation the same as the offer?

No. The offer is the condemnor position based on its own appraisal. Compensation is what the court determines if you do not agree.

Understand your property situation before the next step

Explore North Carolina resources matched to your property, the project affecting it, and the stage you have reached.

Get Help
Scroll to Top