Simply put, when the government wants to take your property by eminent domain you can generally expect to take some or all of the following steps:

1. An initial contact is made by a government agency expressing interest in the property and/or a scheduling date for appraisal and environmental assessment of the property.
2. An appraisal of the property, including improvements, by an agency retained appraiser.
3. An offer to purchase the property is made to the owner, along with a summary of the appraisal upon which the offer to purchase is based.
4. A notice of public hearing to adopt “resolution of necessity” to acquire the property by eminent domain.
5. A public hearing is held to adopt the “resolution of necessity” to acquire the property.
6. The eminent domain case is filed in court and served on the property owner.
7. A deposit by the agency of the probable amount of just compensation is paid into the court along with a request by the agency for early possession of the property.
8. Discovery, including producing documents and taking depositions, takes place in domain action and both the property owner and the government hire appraisers to determine “fair market value” of the property.
9. The property owner and the government exchange their respective appraisers’ reports.
10. The final settlement offers and demands are exchanged about 20 days before trial.
11. If a settlement cannot be reached, trial of the eminent domain actions takes place in the presence of a jury who must determine the “fair market value” of the property.
12. Then the jury reaches a verdict and the judgment is entered.
13. The government pays judgment within 30 days following the entry of judgment and title to the property is transferred to the government by the court.

It should be noted that early on in the process, owner/occupants and/or tenants should be contacted by a government relocation agent. This agent provides assistance to residents and business owners to relocate their residence or business.

California Government Code section 7267.2 requires government agencies to obtain an appraisal and then make an offer to the owner of record of the real property to be acquired before the agency can begin court proceedings. Generally speaking, the offer must be in an amount no less than the appraisal approved by the agency.

As required by Government Code section 7267.2, once the government makes the offer to purchase a property the agency must then provide the owner with a “summary”. Generally, all that is required is a brief summary of the appraisal that the offer is based upon.  The summary is required to identify the sales upon which the appraisal is based and must include a general description of the property that is being valued. 
                                               
If the property to be acquired is an owner occupied residential property of four units or less, the agency must also allow the owner of the property to review the initial appraisal.

Once litigation has begun, the parties will likely exchange appraisal reports about 90 days before trial.  By exchanging appraisal reports, both parties are given the opportunity to evaluate prior to trial and can try to reach a settlement that is satisfactory to both sides.

The owner of the property is not obligated to accept the condemning agency’s offer.  The property owner may offer a counter-offer instead or may request a higher value for his/her property after the eminent domain action is filed in court.

It is not uncommon for property owners, business owners and tenants to receive higher compensation than the amount of the condemning agency’s offer by requesting a claim for greater compensation.

A formal resolution to acquire property must be made before any court proceeding can take place.  This formal resolution is known as a “resolution of necessity.”  The resolution of necessity must be adopted at a public hearing and the condemning agency is required to give the property owner an opportunity to speak at that hearing.

Failing to raise certain arguments at the hearing on the resolution of necessity could prevent those arguments from being raised later on.  Eminent domain counsel should be retained immediately when notice of the resolution of necessity hearing is given in order to protect the owner’s rights.

A “resolution of necessity” is the government agency’s formal decision to acquire property by eminent domain.  This resolution must be adopted before the condemning agency can begin an eminent domain action in court. 

California Code of Civil Procedure section 1245.230 states that before an order to adopt a resolution of necessity is granted, the government agency must first find that:
the project for which the property is to be acquired is necessary; 2)  that the property is necessary for the public project; 3) that the project offers the greatest public benefit with least private detriment; and 4) that an offer to purchase the property has been made.

California Code of Civil Procedure section 1255.410 authorizes the condemning agency to request that the court grant possession of the property before judgment has been rendered in the eminent domain proceeding.  The court can only do so if the condemning agency has deposited  (into the County or State Treasury) the dollar amount which it determines as the probable compensation to be paid for the property.  The court normally will grant the condemning agency’s request for early possession.  At that time the property owner is usually given 90 days notice before being required to vacate the property.  

The property owner or tenant may apply to the court to withdraw the portion of the deposit which has been determined to be the probable amount of compensation.  You can withdraw the amount of the deposit without losing your claim for greater compensation. It should be noted that withdrawing the deposit does waive your right to challenge the government’s right to take the property in the first place.

If you think that the deposit of probable compensation is too low, you are allowed to apply to the court for an increase in the amount of the deposit.  Remember that the court will only grant a request for an increase if you can show that the deposit is too low.  It is then your responsibility to litigate the amount of compensation either before or at trial.

Winning a claim for greater compensation in the eminent domain action can result in the owner being given a higher compensation that previously offered.  However, experienced eminent domain counsel should be consulted to discuss your specific case.