Legal Question in Real Estate Law in California

See if they are open to entering into a contract to pay for their share of the cost over a period of time.

Replacing an existing fence won't add that much value to their property - a $2,500 fence will realistically have a nominal impact on the value of their home. That being said, if you elect to replace the fence, very generally speaking you have a right to seek contribution absent an agreement between you and your neighbor to the contrary (check any CC&Rs;that may exist, as well as any easement agreements). As such, if he refuses to pay you can sue him, obtain a judgment and then record an abstract of judgment which will create a lien against all property he owns in the county in which it is recorded. It would be far more beneficial to you both if you can reach an agreement by which he agrees to repay you over time, rather than suing your neighbor.

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Your question is not unique at all, actually. In fact it is so common that there is a specific statute that addresses the issue. Neighbors are obligated by law to share the cost of boundary fences erected on the property line or what is believed to be the property line. If they refuse to cooperate in replacing the fence you have the choice to do it yourself and sue them for their half, sue them ahead of time for declaratory relief and get an order that they share the cost, or see if they will agree to share the demolition cost and then build a new fence to your own personal liking just on your side of the property line.