Expropriation: Amicable Transfers After Compulsory Purchase Order Regulated by the Expropriation Code

Imagine: you own a plot of land in Mont-de-Marsan, in an area where the municipality has launched a development project. A public body offers to buy your property amicably. You accept, thinking you are concluding a simple private sale. But years later, you discover that the applicable rules are not those of common law, but the more restrictive rules of the Expropriation Code. What to do? The Court of Cassation decided this question in a ruling on 11 January 2023, which directly concerns owners and property professionals.

In this case, owners had sold their plots to the Établissement public d'aménagement de Marne-la-Vallée (Epamarne) after a compulsory purchase order (DUP, an administrative act declaring a project of general interest). They argued that the sale was subject to common law, but the Court of Cassation said no: the provisions of Articles L. 21-1 et seq. of the Expropriation Code apply to all amicable transfers made after a DUP. In other words, once public utility is declared, even an "amicable" sale is governed by special rules, which protect both the public purchaser and the seller, but also limit certain rights.

But what does this actually change for you, an owner in Tarnos or elsewhere? This decision clarifies an important point: you cannot circumvent the rules of expropriation by signing an "amicable" sale deed. The guarantees provided by the Expropriation Code (such as the right of reversion, i.e., the possibility to repurchase the property if the project is not carried out) apply, but also the constraints. In this article, I decipher this decision and its implications for owners, tenants, and professionals.

The Facts: A Story Like Many Others

The story begins in the 1970s, in the context of the development of the new town of Marne-la-Vallée. The Établissement public d'aménagement de Marne-la-Vallée (Epamarne) acquired, in 1975 and 1976, numerous plots located in a zone d'aménagement concerté (ZAC, a planning area). These acquisitions were made after a compulsory purchase order (DUP), but amicably, i.e., by voluntary sales, without resorting to forced expropriation.

Years later, in 2017, Mr. and Mrs. [T], owners of some of these plots, sued Epamarne before the tribunal de grande instance of Paris. They sought the application of Articles L. 21-1 et seq. of the Expropriation Code, relating to the transfer and temporary concession of expropriated properties. In short, they argued that the amicable sale having taken place after the DUP, it should be governed by these provisions, not by the common law of sale. Their objective? Probably to obtain additional rights, such as a right of pre-emption or more favorable compensation.

Epamarne, for its part, argued that the amicable sale was a common law sale, and that the rules of expropriation did not apply. Did the court rule in favor of the [T] spouses at first instance? No, the Paris Court of Appeal, in a ruling of 2 April 2021, rejected their claim. The appellate judges considered that amicable transfers made before the DUP were not subject to the Expropriation Code. But note: here, the sales had taken place after the DUP. The [T] spouses appealed to the Court of Cassation.

The Court of Cassation, in its ruling of 11 January 2023, quashed the Court of Appeal's decision. It reminded that Articles L. 21-1 et seq. of the Expropriation Code apply to amicable transfers made after a compulsory purchase order. It does not matter whether the transfer is amicable or forced: once a DUP has been issued, sales are subject to this special regime. This is an important reminder for all owners affected by development projects.

The Reasoning of the Court — Analysed

To understand the decision, we must first look at the texts. Article L. 21-1 of the Expropriation Code provides that "properties expropriated for the purpose of carrying out operations in zones d'aménagement concerté may be transferred or temporarily conceded" under certain conditions. The question was whether this article applies only to forced expropriations, or also to amicable sales taking place after a DUP.

The Court of Cassation answers: yes, it applies. It relies on the very wording of the law: "properties expropriated" does not only refer to those taken by force, but also to those acquired amicably within the framework of an expropriation procedure. In other words, once a DUP has been declared, the administration may acquire properties either amicably or by expropriation, but in both cases, the legal regime is that of expropriation. The Court of Appeal erred in limiting the scope to forced expropriations only.

What few people know is that this interpretation is consistent in case law. The Court of Cassation has already had occasion to say so: amicable transfers post-DUP are "preparatory acts to expropriation" and are therefore subject to the same rules. Here, it reaffirms this forcefully. The lower court judges (the Court of Appeal) had overlooked this principle.

As for the parties' arguments, the [T] spouses argued a violation of the law. Epamarne argued for a distinction between amicable sale and expropriation. But the Court of Cassation decided: the criterion is not the will of the parties, but the existence of a DUP. Once public utility is declared, the public purchaser acts within the framework of expropriation, even if it buys amicably. This prevents owners from being deprived of the guarantees of the Expropriation Code (such as the right of reversion if the project is not carried out) simply because they agreed to sell without waiting for forced expropriation.

In short, this decision protects sellers: they cannot be circumvented by an amicable sale that would deprive them of the specific rights of expropriation. But note: this also means that public purchasers must comply with all obligations of the Expropriation Code, which may lengthen procedures.

What This Changes for You — Practically

If you own a plot of land located in an area declared of public utility, this decision directly concerns you. Here are the practical implications by profile.

For the owner-landlord (for example, if you rent out a plot in Tarnos that is subject to a DUP for a business park project): if the administration offers you an amicable purchase, know that this sale is subject to the rules of expropriation. You are therefore entitled to compensation calculated according to the rules of expropriation (market value, potential increase), and you can benefit from the right of reversion if the project is not carried out within 5 years. Concretely, if the administration offers you €100,000, you can demand an assessment in accordance with the Expropriation Code, which may be higher.

For the owner-occupier (your main residence): the same rules apply. You can negotiate the relocation allowance (moving costs, etc.) provided for by the code. Note however: the amicable sale does not exempt you from respecting deadlines; if you accept, you must vacate the premises under the conditions set.

For the public purchaser (municipality, public body): you must now scrupulously apply Articles L. 21-1 et seq., even for amicable acquisitions. This implies, for example, respecting the rules on transfer and temporary concession, and including in the sale deed clauses relating to the purpose of the properties. If you do not, the seller can challenge the sale.

undefined, I have encountered cases where owners sold amicably without knowing their rights, and found themselves deprived of the possibility to claim additional compensation. This decision gives them a solid basis to revisit the sale or demand accountability.

Example: in Mont-de-Marsan, a 1-hectare agricultural plot in a ZAC is worth on average €50,000. With the application of the Expropriation Code, the compensation could be increased by 10 to 20% thanks to the relocation allowance and assessment based on market value at the date of the DUP.

Four Tips to Avoid This Type of Dispute

• Check for a DUP before signing: Before any sale to a public body, ask whether a compulsory purchase order has been issued. If so, the sale is subject to the Expropriation Code. Check the prefecture website or the register of acts.
• Have your property valued by an expert: Expropriation compensation is often higher than a standard amicable sale price. Hire an expert specializing in expropriation to estimate the true value of your property according to the code's rules.
• Insist on a deed compliant with the code: In the sale deed, ensure that the right of reversion, project completion deadlines, and transfer conditions are mentioned. If the purchaser refuses, do not hesitate to consult a lawyer.
• Keep all documents: Keep a copy of the DUP, correspondence from the purchaser, and the sale deed. In case of dispute, these are your best assets.

Further Analysis: Related Case Law and Developments

This decision is part of a consistent line: the Court of Cassation has already ruled, for example in a decision of 20 March 2019 (No. 18-14.567), that amicable transfers post-DUP are subject to the Expropriation Code. Here it confirms well-established case law. However, some Courts of Appeal, such as that of Paris in this case, had attempted to distinguish based on whether the transfer was amicable or forced. The Court of Cassation puts them back on the right track.

For the future, this decision could have consequences for sales made within ZACs: local authorities will have to be more vigilant in drafting deeds. It can also be expected that owners who have been wronged in the past will bring actions for redress. In any case, the trend is clear: expropriation law prevails over common law as soon as a DUP exists, even in the case of an amicable agreement.

Summary and Next Steps

What to do if you are affected:

1. Check if a DUP has been issued on your land (consult the prefecture website of Landes or Mont-de-Marsan).
2. If so, do not sign any agreement without consulting a lawyer specializing in expropriation.
3. Have your property valued by an approved expert to know your rights.
4. If a sale has already taken place, you may be able to request a revision of the compensation if it did not comply with the code.

Quick FAQ:

• Can I refuse to sell amicably after a DUP? Yes, but the administration may then initiate forced expropriation, with compensation set by the judge.
• What are my rights if I sell amicably after a DUP? You benefit from the guarantees of the Expropriation Code: relocation allowance, right of reversion, etc.
• Can the sale be annulled if the purchaser did not respect the rules? Yes, you can seek nullity of the sale or damages.
• What is the time limit to act? Generally, 5 years from the sale for nullity actions, but you should consult a lawyer.

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