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HomeEvidence CodeDiv. 7Ch. 1Art. 2§ 817 Lease Impact On Property Value

§ 817 Lease Impact On Property Value

Evidence Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 817 Lease Impact On Property Value

Key Takeaways

  • •When figuring out how much property is worth, you can look at rent and lease details from leases that were active around the time you're checking the value.
  • •If the government is taking property (eminent domain) and the lease was made after they filed a notice (lis pendens), you can't use that lease to figure out the property's value.
  • •You can use leases where rent is based on a percentage of sales or income from a business on the property, but only to figure out the reasonable rent value or the value of the lease itself.

Example

Imagine you own a small shop, and the city wants to buy your building to build a park. You have a lease with a tenant who pays rent based on their sales.

If the city already filed a notice that they want your building before you made the lease, you can't use that lease to say your building is worth more. But if the lease was made before the city's notice, you can use it to help figure out your building's value.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 817 Lease Impact On Property Value

(a) Subject to subdivision (b), when relevant to the determination of the value of property, a witness may take into account as a basis for an opinion the rent reserved and other terms and circumstances of any lease which included the property or property interest being valued or any part thereof which was in effect within a reasonable time before or after the date of valuation, except that in an eminent domain proceeding where the lease includes only the property or property interest being taken or a part thereof, such lease may not be taken into account in the determination of the value of property if it is entered into after the filing of the lis pendens. (b) A witness may take into account a lease providing for a rental fixed by a percentage or other measurable portion of gross sales or gross income from a business conducted on the leased property only for the purpose of arriving at an opinion as to the reasonable net rental value attributable to the property or property interest being valued as provided in Section 819 or determining the value of a leasehold interest. (Amended by Stats. 1978, Ch. 294.)

Last verified: January 22, 2026

Key Terms

rent reservedlis pendensreasonable net rental valueleasehold interest

Related Statutes

  • § 818 Lease Valuation Basis Rules
  • § 815 Property Valuation Sales Evidence
  • § 819 Property Valuation Basis
  • § 1410 Authentication Of Writings
  • § 1410.5 Graffiti Evidence Admissibility

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Evidence Code. Section 817.
View Official Source