(a) Where there is a partial taking of property encumbered by a lien, the lienholder may share in the award only to the extent determined by the court to be necessary to prevent an impairment of the security, and the lien shall continue upon the part of the property not taken as security for the unpaid portion of the indebtedness.
§ 1265.225.Partial Taking of Property Secured By Lien
Title 7. Eminent Domain Law · Chapter 10. Divided Interests · Article 3. Encumbrances · Enacted 1975 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1265.225 limits a lienholder's share of a partial-taking award to what the court finds necessary to prevent impairment of its security, continuing the lien on the untaken part for the unpaid balance, unless the lienholder and owner agree on a different apportionment.
Full Text of § 1265.225
(b) Notwithstanding subdivision (a), the lienholder and the property owner may at any time after commencement of the proceeding agree that some or all of the award shall be apportioned to the lienholder on the indebtedness.
Plain-English Summary
When only part of encumbered property is taken, this section keeps the lienholder from claiming more of the award than necessary. The lienholder shares in the award only to the extent the court determines is needed to prevent impairment of the lienholder's security -- and the lien stays attached to the part of the property that was not taken, continuing to secure whatever portion of the debt remains unpaid.
Subdivision (b) leaves room for the parties to work it out themselves. At any point after the proceeding begins, the lienholder and the property owner can agree that some or all of the award should instead be apportioned to the lienholder against the debt, sidestepping the court's impairment analysis by mutual consent.
Frequently Asked Questions
Does a lienholder automatically get paid out of a partial-taking award?
Only to the extent necessary to prevent impairment of the lienholder's security, as determined by the court.
What happens to the lien on the part of the property that wasn't taken?
It continues, securing the unpaid balance of the debt.
Can the lienholder and property owner agree on a different split of the award?
Yes, at any time after the proceeding begins.
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: lienholder share partial taking award californiaimpairment of security condemnation lien california