1. What Should an Eminent Domain Lawyer Check in an Appraisal?
A government acquisition offer should identify the property rights being acquired and explain the proposed compensation. Under California Government Code § 7267.2, the written valuation statement must disclose the valuation date, zoning, highest and best use, and principal evidence supporting the offer.
An eminent domain lawyer can compare these disclosures with acquisition documents to identify omissions or unsupported assumptions.
Identify the Property Rights Being Acquired
Full ownership, permanent easements, and temporary construction easements affect property use differently.
Owners should compare acquisition maps, legal descriptions, title records, and easement terms to determine whether the appraisal reflects the rights being taken and resulting restrictions.
Verify the Valuation Date and Project Effects
Code of Civil Procedure §§ 1263.110–1263.150 govern valuation dates in condemnation proceedings. The applicable date depends on procedural circumstances and is not necessarily the date of the government's offer.
Under § 1263.330, the value of the property taken excludes increases or decreases attributable to the project, condemnation proceeding, or related preliminary acquisition actions. The appraisal should distinguish these effects from independent market changes.
2. Which Property Records Can Reveal an Undervalued Offer?
Disagreeing with the proposed price does not establish an appraisal error. Owners need evidence that the agency overlooked material property characteristics or relied on unsupported market assumptions.
Sales comparisons, income records, and development restrictions may help establish the property's reasonably supported market value.
Compare Sales Data and Income Records
Comparable sales should reflect differences in location, parcel size, condition, permitted use, and market conditions. Income-producing properties may also require analysis of rental income, operating expenses, and capitalization rates.
Relevant records include:
- Comparable sales: Transactions involving similar properties.
- Leases: Rental rates, terms, and occupancy.
- Operating statements: Expenses, vacancies, and net operating income.
- Property records: Parcel dimensions, improvements, and restrictions.
The comparison should identify material valuation differences rather than merely higher sale prices.
Examine Zoning and Highest and Best Use
Under § 1263.320, fair market value considers uses for which the property is reasonably adaptable and available, not necessarily its existing use.
Development potential may affect value when zoning, physical conditions, market demand, and realistic approval prospects support it. A reasonably probable zoning change may also be relevant, but speculative plans alone do not establish additional value.
3. How Does a Partial Taking Affect the Remaining Property?
A partial taking may reduce the market value of property the owner retains. Under Code of Civil Procedure § 1263.410, qualifying injury to the remainder may be compensable in addition to the value of the acquired land.
The analysis considers damage caused by severance and by the construction or use of the proposed project.
Review Access, Parking, and Land Use
Road widening may eliminate parking, change driveway access, or restrict the remaining parcel's use. Utility easements may limit construction or development.
Site plans, access permits, and land-use records can establish these effects. However, inconvenience alone does not necessarily qualify for compensation. The claimed injury must satisfy applicable legal requirements and affect compensable property value.
Calculate Severance Damages Separately
Severance damages compensate for qualifying injury to retained property rather than the land acquired.
Under Code of Civil Procedure § 1263.410, qualifying benefits offset damages to the remainder. Any excess benefits may reduce compensation for eligible business goodwill losses under § 1263.510, but cannot reduce compensation for the property taken.
An eminent domain compensation review should distinguish acquisition value, remainder damages, and offsetting benefits.
4. What Can an Eminent Domain Attorney Do after Reviewing the Offer?
A valuation discrepancy does not automatically establish inadequate compensation. An eminent domain attorney can examine the agency's assumptions and determine whether independent evidence supports a different valuation.
The findings may support negotiations or become relevant in condemnation proceedings.
Obtain an Independent Property Appraisal
Under Code of Civil Procedure § 1263.025, a public entity must offer up to $5,000 toward reasonable independent appraisal costs when purchasing property under threat of eminent domain. The appraisal must be conducted by a properly licensed appraiser.
This provision does not automatically cover attorney fees or expenses exceeding the statutory limit.
An independent appraisal may reveal unsupported sales adjustments, inaccurate property descriptions, or overlooked development potential.
Examine the Agency's Valuation Disclosures
Government Code § 7267.2 requires a written statement explaining the compensation offer. Owners of qualifying owner-occupied residential properties containing no more than four units may also request to review the underlying appraisal.
The written statement must include separate calculations for acquired property, remainder damages, and offsetting benefits where applicable.
Owners should preserve the offer, valuation statement, acquisition plans, and correspondence. Unresolved disputes may require condemnation proceedings.
5. Reviewing a Government Acquisition Offer
A proposed acquisition price should account for the property rights being taken, reliable market evidence, and compensable damage to remaining land.
When the agency's appraisal relies on questionable assumptions or omits material property characteristics, an independent assessment may support negotiations. Property owners can seek legal review before accepting the proposed terms or pursuing a disputed valuation.
03 Nov, 2026
