(a) Except as otherwise provided in subdivisions (b) and (c), the court shall determine the fair market value of the property by ordering an appraisal pursuant to subdivision (d).
§ 874.316.Fair Market Value of Property
Title 10.5. Partition of Real and Personal Property · Chapter 10. Partition of Real Property Act · Last amended 2023 · Last verified July 28, 2026
In one sentenceSection 874.316 requires the court to determine the property's fair market value, ordinarily by ordering an appraisal from a licensed, disinterested California real estate appraiser, unless the cotenants have agreed on the value or a valuation method, or the court finds the appraisal's cost outweighs its evidentiary value, and sets notice, objection, and hearing procedures before the value is finally fixed.
Full Text of § 874.316
(b) If all cotenants have agreed to the value of the property or to another method of valuation, the court shall adopt that value or the value produced by the agreed method of valuation.
(c) If the court determines that the evidentiary value of an appraisal is outweighed by the cost of the appraisal, the court, after an evidentiary hearing, shall determine the fair market value of the property and send notice to the parties of the value.
(d) If the court orders an appraisal, the court shall appoint a disinterested real estate appraiser licensed in the State of California to determine the fair market value of the property assuming sole ownership of the fee simple estate. On completion of the appraisal, the appraiser shall file a sworn or verified appraisal with the court.
(e) If an appraisal is conducted pursuant to subdivision (d), not later than 10 days after the appraisal is filed, the court shall send notice to each party with a known address, stating all of the following:
(1) The appraised fair market value of the property.
(2) That the appraisal is available at the court clerk's office.
(3) That a party may file with the court an objection to the appraisal not later than 30 days after the notice is sent, stating the grounds for the objection.
(f) If an appraisal is filed with the court pursuant to subdivision (d), the court shall conduct a hearing to determine the fair market value of the property not sooner than 30 days after a copy of the notice of the appraisal is sent to each party under subdivision (e), whether or not an objection to the appraisal is filed under paragraph (3) of subdivision (e). In addition to the court-ordered appraisal, the court may consider any other evidence of value offered by a party.
(g) After a hearing under subdivision (f), but before considering the merits of the partition action, the court shall determine the fair market value of the property and send notice to the parties of the value.
Plain-English Summary
Before anything else happens on the merits, this chapter requires the court to pin down what the property is worth. Subdivision (a) makes an appraisal the default method. Two exceptions apply: subdivision (b) lets the court adopt a value or valuation method the cotenants already agreed to, and subdivision (c), after an evidentiary hearing, lets the court set the value directly if an appraisal's cost would outweigh what it adds evidentially.
When an appraisal is ordered, the court appoints a disinterested, California-licensed real estate appraiser to value the property assuming sole ownership of the fee simple estate — meaning the appraisal isn't discounted for the fact that only a fractional interest is changing hands. The appraiser files a sworn or verified appraisal with the court.
Notice and a chance to object follow. Within ten days of the appraisal being filed, the court sends notice to every party with a known address, stating the appraised value, that the appraisal is available at the clerk's office, and that a party has thirty days from that notice to file an objection stating its grounds. A hearing to determine fair market value follows, held no sooner than thirty days after the notice went out, whether or not anyone objected, and the court can weigh other evidence of value alongside the appraisal.
Only after that hearing, and before the court turns to the merits of the partition itself, does the court fix the fair market value and notify the parties. That sequencing matters: everything that follows in this chapter, including the buyout right in § 874.317 and the sale procedures in § 874.320, depends on this value being set first.
Frequently Asked Questions
Is an appraisal always required before this chapter's procedures move forward?
Not always. The court can skip it if all the cotenants agreed on the value or a valuation method, or if the court finds an appraisal's cost would outweigh its evidentiary value.
Who performs the court-ordered appraisal?
A disinterested, California-licensed real estate appraiser the court appoints, who values the property assuming sole ownership of the fee simple estate.
How long do parties have to object to the appraisal?
Not later than thirty days after the court sends notice of the appraised value.
When does the court finally fix the property's fair market value?
At a hearing held no sooner than thirty days after the appraisal notice was sent, whether or not anyone objected, and before the court considers the merits of the partition action.
Amendment History
Amended by Stats 2022 ch 82 (AB 2245),s 7, eff. 1/1/2023. Added by Stats 2021 ch 119 (AB 633),s 2, eff. 1/1/2022.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
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