§ 1265.250.Property Acquired Encumbered By Lien of Fixed Lien Special Assessment
Title 7. Eminent Domain Law · Chapter 10. Divided Interests · Article 3. Encumbrances · Enacted 1980 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1265.250 sets separate payment rules for special assessment liens on condemned property, splitting them into fixed-lien assessments paid in full or apportioned from the award and special annual assessments prorated between plaintiff and lienholder as of a statutory apportionment date.
(1)"Fixed lien special assessment" means a nonrecurring assessment levied on property in a fixed amount by a local public entity for the capital expenditure for a specific improvement, whether collectible in a lump sum or in installments.
(2)"Special annual assessment" means a recurring assessment levied on property annually in an indeterminate amount by a local public entity, whether for the capital expenditure for a specific improvement or for other purposes.
(b)If property acquired by eminent domain is encumbered by the lien of a fixed lien special assessment or of a bond representing the fixed lien special assessment:
(1)The amount of the lien shall be paid to the lienholder from the award or withheld from the award for payment pursuant to Section 1265.220.
(2)Where there is a partial taking of the property, the amount of the lien prescribed in Section 1265.225 shall be paid to the lienholder from the award, or at the option of the lienholder the applicable statutory procedure, if any, for segregation and apportionment of the lien may be invoked and the amount apportioned to the part taken shall be paid to the lienholder from the award.
(c)If property acquired by eminent domain is encumbered by the lien of a special annual assessment:
(1)The amount of the lien prorated to, but not including, the date of apportionment determined pursuant to Section 5082 of the Revenue and Taxation Code, shall be paid to the lienholder from the award. As between the plaintiff and defendant, the plaintiff is liable for the amount of the lien prorated from and including the date of apportionment determined pursuant to Section 5082 of the Revenue and Taxation Code.
(2)Where there is a partial taking of the property, the amount of the lien, reduced by the amount for which the plaintiff is liable pursuant to this paragraph, shall be paid to the lienholder from the award. As between the plaintiff and defendant, the plaintiff is liable for the amount of the lien allocable to the part taken for the current assessment year, determined to the extent practicable in the same manner and by the same method as the amount of the assessment on the property for the current assessment year was determined, prorated from and including the date of apportionment determined pursuant to Section 5082 of the Revenue and Taxation Code.
Plain-English Summary
This section adds a special-assessment layer to Article 3's lien rules, distinguishing two different kinds of assessments. A "fixed lien special assessment" is a one-time charge in a set amount for a specific improvement, whether collected all at once or in installments. A "special annual assessment" recurs every year in an amount that is not fixed in advance, whether it funds a specific improvement or something else.
Fixed lien assessments follow the article's ordinary lien rules: the amount of the lien gets paid to the lienholder from the award, or withheld under § 1265.220's deduction option, and on a partial taking, § 1265.225's impairment-based sharing rule applies -- though the lienholder can instead invoke whatever statutory procedure exists for segregating and apportioning the assessment, and collect from the award the portion apportioned to the part taken.
Special annual assessments work differently because they recur and their amount is not fixed. The lien amount gets prorated up to, but not including, the date of apportionment set under Revenue and Taxation Code § 5082 -- that prorated share goes to the lienholder from the award, while the plaintiff, as between plaintiff and defendant, is liable for the portion of the lien from and including the apportionment date onward. On a partial taking, the same prorating logic applies, but the lienholder also gets the amount allocable to the part taken for the current assessment year, worked out as closely as practical to the same method used to calculate the original assessment.
Frequently Asked Questions
What's the difference between a fixed lien special assessment and a special annual assessment?
A fixed lien assessment is a one-time charge in a set amount for a specific improvement; a special annual assessment recurs yearly in an amount that is not fixed in advance.
How is a fixed lien special assessment paid when property is condemned?
From the award, following the article's general lien rules, with the option to instead use a statutory segregation-and-apportionment procedure on a partial taking.
Who pays for a special annual assessment that straddles the date of taking?
The lienholder gets the prorated amount up to the apportionment date from the award; the plaintiff is liable, as between plaintiff and defendant, for the portion from that date onward.
Amendment History
Added by Stats. 1980, Ch. 122, Sec. 2.
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:special assessment lien eminent domain californiafixed lien assessment condemnation californiaannual assessment proration eminent domain