(a) A public entity shall offer to pay the reasonable costs, not to exceed five thousand dollars ($5,000), of an independent appraisal ordered by the owner of a property that the public entity offers to purchase under a threat of eminent domain, at the time the public entity makes the offer to purchase the property. The independent appraisal shall be conducted by an appraiser licensed by the Office of Real Estate Appraisers.
§ 1263.025.Independent Appraisal of Property Public Entity Offers to Purchase Under Threat of Eminent Domain
Title 7. Eminent Domain Law · Chapter 9. Compensation · Article 1. General Provisions · Enacted 2006 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1263.025 requires a public entity that offers to purchase property under a threat of eminent domain to also offer, at the time of that offer, to pay up to $5,000 toward an owner-ordered independent appraisal by a licensed appraiser.
Full Text of § 1263.025
(b) For purposes of this section, an offer to purchase a property "under a threat of eminent domain" is an offer to purchase a property pursuant to any of the following:
(1) Eminent domain.
(2) Following adoption of a resolution of necessity for the property pursuant to Section 1240.040.
(3) Following a statement that the public entity may take the property by eminent domain.
Plain-English Summary
Before a condemnation case is even filed, a public entity often approaches an owner with a purchase offer instead. Section 1263.025 gives that owner a way to check the entity's number against an independent one, at the entity's expense.
When the public entity makes such an offer, it must at the same time offer to cover the reasonable cost of an appraisal the owner orders, up to $5,000, performed by an appraiser licensed by the Office of Real Estate Appraisers.
The reimbursement obligation only kicks in when the purchase offer counts as being made "under a threat of eminent domain." Subdivision (b) defines that broadly: an offer made under the eminent domain power itself, an offer made after the entity has adopted a resolution of necessity for the property under § 1240.040, or an offer accompanied by a statement that the entity may take the property by eminent domain.
Frequently Asked Questions
How much must a public entity offer to pay toward an independent appraisal?
Up to $5,000 in reasonable costs, under § 1263.025(a).
Who can perform the independent appraisal?
An appraiser licensed by the Office of Real Estate Appraisers.
What counts as an offer made under a threat of eminent domain?
An offer made through eminent domain itself, an offer following adoption of a resolution of necessity under § 1240.040, or an offer accompanied by a statement that the entity may take the property by eminent domain.
When must the public entity make this reimbursement offer?
At the same time it makes its offer to purchase the property.
Amendment History
Added by Stats 2006 ch 594 (SB 1210),s 8, eff. 1/1/2007.
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: independent appraisal reimbursement eminent domainthreat of eminent domain offer to purchaseappraisal cost condemnation