At the request of an owner of property acquired by eminent domain, the public entity may enter into an agreement with the owner specifying the manner of payment of compensation to which the owner is entitled as the result of the acquisition. The agreement may provide that the compensation shall be paid by the public entity to the owner over a period not to exceed 10 years from the date the owner's right to compensation accrues. The agreement may also provide for the payment of interest by the public entity; however, the rate of interest agreed upon may not exceed the maximum rate authorized by Section 16731 or 53531 of the Government Code, as applicable, in connection with the issuance of bonds.
§ 1263.015.Agreement With Owner Specifying Manner of Payment
Title 7. Eminent Domain Law · Chapter 9. Compensation · Article 1. General Provisions · Enacted 1982 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1263.015 lets a public entity and property owner agree, at the owner's request, to spread payment of eminent domain compensation over as long as ten years, with interest capped at the maximum rate allowed for the entity's own bond issuances.
Full Text of § 1263.015
Plain-English Summary
Compensation in eminent domain usually comes as a lump sum, but Section 1263.015 gives owners a way to opt for something different. At the owner's request, the public entity may agree to a payment schedule stretching up to ten years from the date the owner's right to compensation accrues, rather than paying the full amount at once.
An agreement like this can also include interest on the deferred balance. To keep that interest reasonable, the statute ties the maximum rate to whatever the public entity could pay on its own bonds under Government Code § 16731 or § 53531, whichever governs that entity. The owner gets flexibility in how the money arrives; the public entity gets a borrowing cost it already knows how to manage.
Frequently Asked Questions
Who can request an installment payment arrangement for compensation?
The owner of the property acquired by eminent domain. Section 1263.015 lets the owner request this arrangement from the public entity.
How long can payments be spread out under this section?
Up to ten years from the date the owner's right to compensation accrues.
Is there a limit on the interest rate the agreement can charge?
Yes. The rate cannot exceed the maximum rate authorized under Government Code § 16731 or § 53531 for the public entity's bond issuances.
Is the public entity required to agree to installment payments?
No. Section 1263.015 describes an arrangement the public entity may enter into at the owner's request; it does not compel the entity to do so.
Amendment History
Added by Stats. 1982, Ch. 1368, Sec. 1.
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: installment payments eminent domain compensationdeferred payment condemnation awardinterest on eminent domain compensation