When you sell a property, you have a free choice of buyer. But did you know that the buyer could be supplanted by another player: the municipality, through the right of pre-emption?
What is the urban right of pre-emption?
The urban right of pre-emption is in fact the famous "DPU". It was introduced in the 1980s to enable local authorities to carry out certain development projects, by giving them priority to purchase property in areas defined in advance by the local urban development plan (PLU).This right enables a local authority to take the place of the prospective buyer (even after the preliminary contract has been signed). The mayor's office pre-empts and buys in place of the person who has signed the compromis de vente or promesse de vente. The municipality may have a simple urban right of pre-emption (DPU) or a reinforced urban right of pre-emption (DPUR) based on pre-defined zones.
This right enables it to acquire a property in priority to any other buyer. And at a price that may even be lower than that negotiated over a long period of time! Such pre-emption is possible if, and only if, the mayor's office acts in the public interest and justifies its decision accordingly.
How does it work?
Once the preliminary contract has been signed and all the formalities have been completed, the notary sends a declaration of intent to sell (DIA) to the town hall in the commune where the property is to be sold. This is a form containing the price and conditions of sale.
This document is sent by registered mail with acknowledgement of receipt to the commune. Once the DIA has been received, the town council has two months to decide whether or not to pre-empt the property. It should be noted that the absence of a response from the commune is a tacit renunciation of its right of pre-emption.
If the commune is interested, it proposes a price (in most cases, the price set by the seller). There are two possibilities at this point:
- you agree on the price and the transaction can go ahead: you sell your property to the commune;
- you do not agree on the price: the commune must refer the matter to the expropriation judge.
Rest assured, the exercise of a commune's right of pre-emption remains marginal, given the number of real estate transactions!
What if I'm offered a lower price?
what can I do?
If you are not satisfied with the proposed price, you have two months in which to :
- withdraw from the sale ;
- or refuse under these conditions and ask the expropriation judge to set the price.
Reference prices are those of recent transactions in the same sector and for the same type of property.
It may also happen that the municipality decides to pre-empt your property and ends up using it for a different purpose than the one mentioned in the pre-emption. In this case, it must offer to buy back the property from the former owner as a matter of priority. This is known as the right of retrocession.
Note that this intrusion into your freedom to sell is not confined to real estate. It has also been introduced in certain communes for the sale of businesses, craft businesses, etc.
Stéphanie Swiklinski