The municipality is preempting my property: can I accept, withdraw or challenge the price?
If the municipality preempts at the price stated in the DIA, the sale is concluded at that price. If it offers a lower price, the seller may accept, withdraw the property from sale or stand by the price: the expropriation judge then sets the price (Article L. 213-4 of the French Urban Planning Code).
The preemption decision: form, deadline, reasons
The municipality, or the delegated holder, notifies its decision within two months of receiving the DIA. The preemption decision must state its reasons: it mentions the purpose for which the right is exercised, linked to a public-interest action or operation (Article L. 210-1 of the French Urban Planning Code).
If the holder accepts the price and terms set out in the declaration, the sale is concluded in its favour on those terms. Ownership is transferred on the later of the dates on which the payment and the notarial deed take place (Article L. 213-14 of the French Urban Planning Code).
Three options when faced with an offer to buy at a reduced price
The holder may also offer to buy at a price lower than the one stated in the DIA. The owner then has two months to react (Article R. 213-10 of the French Urban Planning Code); silence counts as a waiver of the transfer, in other words the property is withdrawn from sale.
The owner's options after a preemption offer at a lower price are as follows: accepting the price offered by the authority, in which case the sale is concluded at that price; withdrawing from the sale, in which case the property is taken off the market and the owner keeps it; standing by the price stated in the DIA, in which case the holder refers the matter to the expropriation court so that it sets the price (Article L. 213-4); or remaining silent for two months, which counts as a waiver of the transfer (Article R. 213-10).
| Seller's option | Effect |
|---|---|
| Accept the price offered by the authority | The sale goes through at that price |
| Withdraw from the sale | The property is taken off the market and the owner keeps it |
| Hold to the price stated in the DIA | The authority applies to the expropriation court to have the price fixed (Article L. 213-4) |
| Stay silent for two months | Counts as abandoning the disposal (Article R. 213-10) |
The owner's options after an offer to pre-empt at a lower price
Judicial price-setting by the expropriation judge
Failing an amicable agreement on the price, it is set by the court with jurisdiction over expropriation, according to the valuation rules applicable in that field (Article L. 213-4 of the French Urban Planning Code). The holder who refers the matter to the court must deposit a sum equal to 15% of the valuation of the property established by the departmental director of public finances; failing that deposit, it is deemed to have waived the preemption (Article L. 213-4-1).
Once the court decision has become final, the parties have two months to accept the price set or to withdraw from the transaction. Silence from the parties within that period counts as acceptance of the price, and ownership passes to the holder at the end of that period (Article L. 213-7).
Challenging the preemption and recovering your property
The lawfulness of the preemption decision can be challenged before the administrative court through an action for annulment, in principle within two months of its notification or publication. Both the seller and the ousted buyer have standing to do so, and an application for interim suspension can accompany the action in urgent cases (Article L. 521-1 of the French Code of Administrative Justice).
The holder must then pay the price, or deposit it with the court in the event of an obstacle to payment, within four months of the decision to buy at the requested price, of the agreement on the price or of the final court decision; failing that, the owner regains free disposal of the property (Article L. 213-14). Finally, if the authority decides to use or transfer the property for purposes other than those of the preemption within five years of the acquisition, it must first offer to sell it back to the former owner or, failing that, to the ousted buyer (Article L. 213-11).
Frequently asked questions
Can the municipality preempt at a price lower than the one in the preliminary agreement?
Yes, it can make an offer at a price lower than the one declared in the DIA. The seller is never forced to sell at that price: they can withdraw from the sale or stand by their price, in which case the expropriation judge sets the price (Article L. 213-4 of the French Urban Planning Code).
Who sets the price in the event of disagreement with the municipality?
The court with jurisdiction over expropriation, seised by the holder of the preemption right, sets the price according to the valuation rules applicable to expropriation (Article L. 213-4 of the French Urban Planning Code). Each party may then withdraw within two months of the final decision.
Can the ousted buyer challenge the preemption?
Yes. The ousted buyer, like the seller, can bring an action for annulment against the preemption decision before the administrative court, in principle within two months, and apply for interim suspension in urgent cases.
What happens to the property if the municipality does not carry out its project?
If the holder decides to use or transfer the property for purposes other than those that justified the preemption within five years of the acquisition, it must first offer to sell the property back to the former owner (Article L. 213-11 of the French Urban Planning Code).
Read next
- Code de l'urbanisme, article L213-4 (Légifrance)
- Code de l'urbanisme, article L213-4-1 (Légifrance)
- Code de l'urbanisme, article L213-7 (Légifrance)
- Code de l'urbanisme, article L213-11 (Légifrance)
- Code de l'urbanisme, article L213-14 (Légifrance)
- Code de l'urbanisme, article R213-10 (Légifrance)
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