The justiprecio or fair price[1]​ constitutes compensation for the loss of expropriated goods and rights,[2]​ and is an essential element of expropriation, which differentiates it from confiscation, in which there is loss of the individual's property but there is no compensation.

It should not be confused with the fair price, which is a concept of economic philosophy, nor with The Fair Price, which is a television game show franchise.

The fair price must involve full compensation for the property loss that the expropriated person experiences. It must contain sufficient value to replace what was expropriated according to the real value, which, in principle, is the market value. However, urban planning legislation establishes objective values, based on certain guidelines, which usually achieve results that are lower than the market. The moment taken to calculate the replacement value must be the date on which the justivaluation file is initiated, and from that moment on, the improvements made by the expropriated party are not valued, unless they are essential for the conservation of the expropriated thing.

In this way, to form the fair price, attention must be paid, first of all, to the objectivity of the valuation criteria, without including the sentimental, affective, or any other value of a subjective nature. However, the so-called "affection award" is included for such damage, which comprises 5% of the total amount of the resulting fair price.

The fair price must take into account the full replacement that repairs all the damage caused by the expropriation activity, not exclusively the market value of the expropriated right. Thus, for example, the expropriation of a business premises includes not only the value of the premises, but also the total damage it entails for the expropriated party, including possible losses of clients or business positioning.

As a closing rule, it is said that the fair price should not include the surplus value produced by the act itself that gives rise to the expropriation. In the same way, it is understood that the decrease in value operated for identical reasons must also be ignored in the formation of the fair price.