When land is rezoned to a use that devalues it by 25%, what is the owner's right to compensation?

Study for the California Real Estate Broker Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare efficiently and effectively for your licensing exam!

When land is rezoned, the property owner does not have an automatic right to compensation just because the change may devalue the property. The principle governing this situation is based on the concept of police power, which allows governmental entities to regulate land use for the sake of the public good. This power can include zoning changes that may affect property values.

In California, property owners typically are not entitled to compensation for losses incurred due to legitimate zoning changes, as these are often justified by municipal planning and development goals aimed at community welfare. Therefore, if a property is rezoned and this results in a 25% devaluation, the owner generally has no recourse for compensation solely based on that devaluation.

The idea is that landowners accept certain risks associated with property ownership, including changes in zoning laws that can affect the value of their property. This means that unless there are specific circumstances that allow for compensation—such as a taking under eminent domain—the owner has no legal basis for claiming compensation simply due to the effect of rezoning on property value.

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