If the property to be taken is subject to a leasehold interest and the plaintiff has not made a deposit that satisfies the requirements of this article, the lessor may serve notice on the plaintiff requiring a deposit of the probable amount of compensation that will be awarded in the proceeding in the same manner and subject to the same procedures and conditions as a motion pursuant to Section 1255.040 except that, if the plaintiff fails to make the deposit, the interest awarded shall be offset by the lessor's net rental profits on the property.
§ 1255.050.Deposit Where Property to Be Taken Subject to Leasehold Interest
Title 7. Eminent Domain Law · Chapter 6. Deposit and Withdrawal of Probable Compensation; Possession Prior to Judgment · Article 1. Deposit of Probable Compensation · Enacted 1975 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1255.050 gives a lessor of condemned property the same deposit-demand right § 1255.040 gives a resident-defendant, except that if the plaintiff misses the deadline, the interest awarded is reduced by the lessor's own net rental profits from the property.
Full Text of § 1255.050
Plain-English Summary
When the property being taken is subject to a leasehold, the lessor gets a version of § 1255.040's tool. If the plaintiff hasn't made a satisfying deposit, the lessor can serve notice demanding one, using the same manner, procedures, and conditions § 1255.040 sets for a residential occupant's demand.
The one difference matters: where § 1255.040 gives the residential defendant interest without any offset, this section offsets the interest awarded to the lessor by whatever net rental profits the lessor collected from the property while the plaintiff's deposit was late. The lessor still gets compensated for the delay, just not for delay that also put rent in the lessor's pocket.
Frequently Asked Questions
Who can use this notice procedure?
A lessor of property subject to a leasehold interest that's being condemned, when the plaintiff hasn't made a deposit satisfying Article 1.
How is this different from the homeowner version in § 1255.040?
The interest the lessor is awarded for a late deposit gets reduced by the lessor's own net rental profits on the property during that period.
Does the same notice timing apply here?
Yes, the notice follows the same manner and conditions as the demand procedure in § 1255.040.
Amendment History
Added by Stats. 1975, Ch. 1275.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 29, 2026.
· Official source
Also known as: lessor deposit demand eminent domain californialeasehold interest condemnation deposit notice