Expropriation Without Compensation: Irregular Construction Confers No Rights

Imagine this: you own a plot of land in Yutz, on the outskirts of Thionville. Twenty years ago, you built a garage without applying for a building permit. Today, the local authority is expropriating you to build a bypass road. You expect to receive compensation covering the value of the land and the garage. But then the judge tells you that you will get nothing for the garage. Why? Because the garage was built irregularly on non-buildable land. You say to yourself: 'But the authorities never said anything, and the time limit for demanding demolition has passed!' Is that enough to create a right? The answer is no, as the Court of Cassation has just ruled in a decision of 15 February 2024 (no. 22-16.460).

This decision is crucial for all property owners, landlords or real estate professionals. It reminds us that the right of ownership is not absolute: it is conditional on compliance with planning rules. In other words, an illegal building (without a permit or in breach of the local development plan) confers no legally protected right, even if the authorities have turned a blind eye for years. And this also applies to expropriation, where compensation is supposed to compensate for the loss of a property held in good faith.

So what happens if you are expropriated from a property you built irregularly? The answer boils down to one principle: no right, no compensation. The Court of Cassation states this unambiguously: 'Failing the owner being able to rely on a legally protected right on the day of the expropriation, the dispossession of a building erected irregularly and located on a non-buildable plot does not give rise to compensation, even if any demolition action is time-barred on the date of the expropriation.' In short, the planning irregularity kills the right to compensation, and the limitation period for the demolition action does not revive that right. Full analysis below.

The Facts: A Story That Happens Every Day

The case pits SORGEM (Société d'équipement et de gestion de la Moselle, a public developer) against Mrs E., owner of a plot in Thionville. On this land, classified as non-buildable by the Local Development Plan (PLU), Mrs E. had erected a building without a building permit. Years later, SORGEM is in charge of a development operation requiring the expropriation of the plot. The expropriation judge (Tribunal judiciaire of Metz) must set the compensation due to Mrs E.

Problem: the building is irregular. SORGEM argues that it owes nothing for the building because it is illegal. Mrs E. retorts that any demolition action is time-barred (over 10 years, the limitation period under Article L. 480-14 of the French Planning Code), and that she is therefore a good-faith owner. She claims compensation including the value of the building.

The Metz court initially sets alternative compensation: either the building is declared illegal by the court, or it is not. SORGEM appeals. The Court of Appeal of Nancy confirms the alternative approach. Dissatisfied, SORGEM appeals to the Court of Cassation. The Court of Cassation quashes the appeal judgment and refers the case back to the Court of Appeal of Metz. Its reasoning is relentless: the irregularity of the building precludes any compensation, regardless of whether the demolition action is time-barred.

The Court's Reasoning — Analysed

The Court of Cassation relies on the general principle of property law and Article 545 of the French Civil Code (no one may be compelled to transfer their property except for public utility purposes, and upon payment of fair and prior compensation). But it reminds us that compensation only compensates for the loss of a legally protected right. However, a building erected in violation of planning rules (lack of a permit, non-buildable land) does not constitute a protected right. In other words, the owner has no right to maintain that building against the authorities, who can always demand its demolition.

But what changes with the limitation period? Article L. 480-14 of the French Planning Code provides that the authorities' demolition action is time-barred 10 years from the completion of the works. After this period, the authorities can no longer demand demolition. Yet the Court of Cassation states that this limitation period does not turn an illegal building into a legal one. The original defect remains, and the owner cannot rely on an acquired right. In short, the limitation period extinguishes the action, but does not validate the illegality.

This reasoning is a confirmation of earlier case law (Cass. 3e civ., 17 March 2016, no. 15-12.198). The Court of Cassation had already held that the lack of a building permit renders the building irregular and precludes compensation, even if the authorities had not acted. Here, it adds that the limitation period for the demolition action changes nothing. This is therefore a firm position, which protects the general interest (planning) at the expense of the individual owner.

undefined, I have come across cases where owners in Thionville or Yutz bought land with unauthorised buildings, thinking that time would make them legal. This decision proves them wrong: time does not cure planning illegality. So you must be extremely vigilant when acquiring a property.

What This Changes for You — Practically

This decision has immediate practical consequences for several categories of people.

Landlord: If you rent out a property with an extension or improvement carried out without a permit, be aware that this property could be expropriated without compensation for the irregular part. For example, a 20 m² garage built without a permit in Yutz could be valued at €0 in an expropriation. You would only receive the value of the bare land. So check the compliance of all your buildings.

Buyer of a property: Before buying, ask for building permits and certificates of conformity. If you acquire a property with an unauthorised building, you run the risk that in the event of expropriation, you will not be compensated for that part. For example, in Thionville, a house with an unauthorised conservatory could see its compensation reduced by €30,000.

Co-owner: If your co-ownership includes common parts built irregularly (e.g., a bike shed without a permit), the expropriation compensation could be reduced, affecting the value of your units. It is wise to regularise the situation with the town hall before any procedure.

However, note: this decision only applies to expropriations. For private sales, the seller and buyer can freely agree on a price including the irregular building. But the buyer then takes the risk of a future expropriation without compensation.

Four Tips to Avoid This Type of Dispute

• Check planning compliance before buying: Ask the seller for all building permits, prior declarations and certificates of conformity. Check the Local Development Plan (PLU) of your commune to verify whether the land is buildable. An appointment at the planning department of Thionville or Yutz can save you trouble.
• Regularise existing buildings: If you have carried out works without a permit, apply for a retrospective building permit (regularisation) if the building complies with planning rules. If it does not, you may have to demolish it, but better to know before an expropriation.
• Rely on adverse possession (usucapion): In some cases, peaceful and continuous possession for 30 years can allow you to acquire ownership by prescription. But this does not work for illegal buildings: adverse possession cannot cure a planning illegality (Cass. 3e civ., 2016). Do not rely on time to regularise.
• Consult a lawyer specialising in property law: In case of an expropriation project or dispute, a lawyer can assess your rights and negotiate compensation. Maître Cécile Zakine practises throughout France, including Moselle. A quick consultation can save you thousands of euros.

Besoin d'un conseil personnalisé ? Contactez Maître Zakine — première consultation 30 min à 45€.

Further Analysis: Related Case Law and Developments

This decision is part of a consistent line of the Court of Cassation. Already in 2016 (no. 15-12.198), the Third Civil Chamber had held that 'the absence of a building permit renders the building irregular and precludes expropriation compensation'. More recently, a judgment of 12 January 2023 (no. 21-24.350) clarified that even a building declared compliant after a modified permit could be irregular if the initial permit itself was illegal. The trend is therefore towards strict application: no compensation for unauthorised buildings.

What few people know is that this strictness also extends to buildings erected on public land (Cass. 3e civ., 8 September 2021, no. 20-16.422). The owner of a building without title on public land cannot claim compensation in the event of expropriation. The logic is the same: absence of a legally protected right.

For the future, it is likely that the courts will continue to refuse any compensation for irregular buildings, even if the authorities have tolerated the situation for decades. Only a legislative change could change this, but nothing is on the horizon. In the meantime, caution is advised.

Summary and Next Steps

FAQ:

1. Can I be expropriated without compensation for a building without a permit? Yes, if the land is non-buildable or the building violates planning rules, you will not be entitled to any compensation for the building, even if the demolition action is time-barred.

2. What should I do if I am expropriated and my building is irregular? You can challenge the irregularity before the expropriation judge by demonstrating that the building is compliant or that you have an acquired right (e.g., a tacit permit). But without this, compensation will be limited to the bare land.

3. Doesn't the 10-year limitation period help me? No, the limitation period extinguishes the demolition action, but does not create a right of ownership over the building. The original defect remains.

4. Can I regularise my building afterwards? Yes, if it complies with current planning rules. Submit an application for a modified building permit or a prior declaration. If the town hall approves it, the building becomes regular and will be compensable in the event of a subsequent expropriation.

5. What is the time limit to act? In case of expropriation, you have 15 days to challenge the compensation before the judge. Consult a lawyer immediately.

Are you in a similar situation? A first 30-minute consultation with Maître Zakine (€45) can save you months of proceedings — and often much more. Book an appointment →