Factors identification influencing compensation size in case of property expropriation for public utility

Abstract

Expropriation of immovable property for public utility is an essential component within economic development of a country. Compensation amount calculation in the process of expropriation of goods for public utility is an extremely important element for both the public administration bodies and for the persons whose property falls under the expropriation. The article covers factors review to be taken into account in the expropriation process and which will affect the amount of damages awards. The valuation date is highlighted as one of the most important problems of the valuation process, because it is a key element while assessing the amount of compensation to be paid in the process of expropriation for public utility. It is also mentioned that because the compulsory acquisition in the case of land expropriation is totally different from a simple sale and purchase transaction, it is reasonable to modify the legislation in order to stipulate the valuation date. Thus, imperfect legislation, as well as the complexity of its practical application, negatively influence investments and the use of budgetary funds.