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§ 1263.740.Presence of Hazardous Material Not Considered In Appraising Property

Title 7. Eminent Domain Law · Chapter 9. Compensation · Article 8. Remediation of Hazardous Materials on Property to be Acquired by School Districts · Enacted 1995 · no amendments on record · Last verified July 29, 2026

In one sentenceSection 1263.740 bars any consideration of hazardous material's presence when appraising the property for purposes of the § 1263.720 hearing, the pre-judgment deposit under Article 1 of Chapter 6, or the fair market value determination under Article 4.

Full Text of § 1263.740

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The presence of any hazardous material within a property shall not be considered in appraising the property, for purposes of Section 1263.720, pursuant to Article 1 (commencing with Section 1255.010) of Chapter 6, or pursuant to Article 4 (commencing with Section 1263.310).

Plain-English Summary

This section keeps contamination out of the valuation math entirely. When appraising the property for purposes of the § 1263.720 hearing, for the pre-judgment deposit under Article 1 of Chapter 6, or for the fair-market-value determination under Article 4, the presence of any hazardous material is not to be considered.

The idea is to keep the two systems separate: property value gets appraised as if the contamination were not a valuation issue, while the cost of dealing with that contamination gets handled entirely through the trustee-and-required-action process in §§ 1263.720 and 1263.730. Folding hazardous material into the appraisal itself would double up, or scramble, those two separate calculations.

Frequently Asked Questions

Does the presence of hazardous material lower the appraised value of the property?

No -- this section excludes hazardous material from consideration in the appraisal for these purposes.

Where does the cost of hazardous material cleanup get accounted for instead?

Through the trustee and required-action process under §§ 1263.720 and 1263.730, not through the appraisal.

Amendment History

Repealed and added by Stats. 1995, Ch. 247, Sec. 2. Effective January 1, 1996.

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: hazardous material appraisal exclusion californiacontamination not factored into property value condemnation