How an Eminent Domain Lawyer Reviews Property Valuation

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.

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.

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.

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.

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.

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.

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.

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.