How Is Just Compensation Determined in a South Carolina Condemnation?

The Constitutional Requirement of Just Compensation

Both the Fifth Amendment of the U.S. Constitution and Article I, Section 13 of the South Carolina Constitution require the government to pay "just compensation" when private property is taken for public use. Just compensation is designed to put the property owner in as good a financial position as they would have been if the taking had not occurred.

However, the government's idea of just compensation often differs from the landowner's valuation. Challenging the government's appraisal requires establishing the property's true value under South Carolina law.

Fair Market Value and Highest & Best Use

Just compensation is primarily based on the fair market value of the property on the date of the taking. South Carolina courts define fair market value as the price a willing buyer would pay a willing seller in an open and competitive market.

To determine this value, appraisers must evaluate the property's **highest and best use**. This is not necessarily how the property is currently used. For example, if a piece of agricultural land is located in a rapidly developing commercial zone, its highest and best use—and its true value—may be commercial development. The government must pay for this potential, not just its current state.

Evaluating Partial Takings and Severance Damages

If the government only takes a portion of your land, the compensation calculation becomes more complex. You are entitled to the value of the property taken, plus compensation for any reduction in the value of the remaining land. These reductions are known as **severance damages** (or damage to the remainder).

Severance damages can occur if a road widening project brings traffic closer to a home, cuts off access to a business's primary driveway, removes necessary parking spaces, or leaves an odd-shaped parcel that is difficult to develop. Calculating these damages requires a detailed "Before and After" appraisal analysis. For more on partial takings, see our condemnation and eminent domain page.