The fair market value of the property taken shall not include any increase or decrease in the value of the property that is attributable to any of the following:
§ 1263.330.Increase Or Decrease In Value Not Included
Title 7. Eminent Domain Law · Chapter 9. Compensation · Article 4. Measure of Compensation for Property Taken · Enacted 1975 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1263.330 excludes from fair market value any increase or decrease attributable to the project itself, the eminent domain proceeding, or the plaintiff's preliminary actions related to the taking, so the valuation reflects the property's worth apart from the condemnation that brought the case.
Full Text of § 1263.330
(a) The project for which the property is taken.
(b) The eminent domain proceeding in which the property is taken.
(c) Any preliminary actions of the plaintiff relating to the taking of the property.
Plain-English Summary
Public projects can move property values in either direction long before a condemnation case is ever filed -- a planned freeway might depress nearby land values, or a planned transit stop might inflate them. Left unchecked, that kind of project-driven swing would let either side game the fair market value figure using changes the project itself caused, rather than changes reflecting the property's real worth.
This section screens those swings out. Fair market value can't include any increase or decrease in value attributable to the project for which the property is taken, to the eminent domain proceeding itself, or to any preliminary actions the plaintiff took relating to the taking -- planning studies, public announcements, or similar precursor activity.
The result is a valuation that asks what the property would be worth if the project and the condemnation case had never entered the picture, isolating the property's own market value from the effects of the very government action that put it in a lawsuit.
Frequently Asked Questions
Does fair market value include changes in value caused by the project itself?
No. Section 1263.330(a) excludes any increase or decrease attributable to the project for which the property is taken.
What about value changes caused by the eminent domain proceeding itself?
Those are also excluded, under § 1263.330(b).
Does this exclusion cover the plaintiff's actions before the case was filed?
Yes, § 1263.330(c) excludes changes attributable to the plaintiff's preliminary actions relating to the taking.
Why does the law exclude project-related value changes?
So the compensation reflects the property's independent worth, rather than value inflated or depressed by the very project or proceeding that brought the case.
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: project influence rule eminent domain californiaexcluding project effects from fair market value