HANDBOOK CONTENTS I The Power of Eminent Domain II The Eminent Domain Process III Just Compensation • What is "just compensation"? • Who is entitled to just compensation? • What is "fair market value"? • As of what date will my property be valued? • What happens if the property is rented - who gets the compensation? • What if only part of my property is taken? • What about improvements - is compensation paid for these? • Are business losses compensated? • Is there anything I need to do to protect my right to seek business losses? • Am I entitled to interest? • How much will this cost, and am I entitled to recover my expenses from the government? IV Retaining an Attorney
	THE CALIFORNIA EMINENT DOMAIN HANDBOOK Chapter III: Just Compensation What happens if the property is rented - who gets the compensation? When a property is leased or rented, both the owner and tenant may be entitled to compensation, depending on whether the lease contains an enforceable condemnation clause. If there is no condemnation clause, the property is generally valued as a whole and that value is then divided among the owner and the tenants according to their respective interests in the property. What many property owners do not realize is that if their property is leased at below market rents, and their lease does not contain a condemnation clause, the tenant may be entitled to receive a sizeable portion of any compensation paid for the real estate. It should be noted that the government can alternatively require that each party's interest be separately valued, rather than valuing the property as a whole and then dividing that whole. This is, however, rare.
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