Expropriation and Abandonment: What to Do When Your Land Is Threatened?

Imagine: you are the owner of a house in Decazeville, in the Aveyron, which you bought twenty years ago. One day, you receive a letter from the town hall informing you that your land is located in a deferred development zone (ZAD). You have the right to ask the municipality to acquire your property; this is called abandonment (délaissement). But at what price? On what legal basis? This is exactly the question that the Cour de cassation decided in 1990. A question that any property owner might one day ask themselves, especially in towns like Decazeville or Espalion where development projects are frequent.

What does this decision answer? That the rules for calculating expropriation compensation (Article L. 13-2 of the Expropriation Code) do not apply to the abandonment provided for in Article L. 123-9 of the Town Planning Code, in its version resulting from the law of 1976. In other words, when you ask the municipality to buy back your property, the price is not set as in a classic expropriation. This is a technical distinction, but one that can have a considerable financial impact for property owners.

In this article, I will tell you the story of this case, explain the judges' reasoning, and above all give you practical advice to avoid nasty surprises. Because an error of judgment can cost you thousands of euros.

The facts: a story that happens every day

Mr. X, owner of a plot of land in Decazeville, is faced with a municipal development project. His plot is included in a ZAD, which means that the municipality has a right of pre-emption (priority purchase right) over the land. Rather than waiting for the municipality to exercise this right, Mr. X decides to take the initiative: he puts the municipality on notice to acquire his property, in accordance with Article L. 123-9 of the Town Planning Code. This is called abandonment.

The municipality agrees, but a disagreement arises over the amount of compensation. Mr. X believes that the price should be set according to the rules of expropriation, i.e. taking into account the market value at the date of the judgment, as provided for in Article L. 13-2 of the Expropriation Code. The municipality, for its part, considers that abandonment is a separate mechanism and that the rules of expropriation do not apply. The expropriation judge of Paris agrees with the municipality by order of 26 October 1978, setting a lower compensation than that claimed by Mr. X.

Mr. X appeals. The Court of Appeal upholds the judgment: abandonment does not give rise to classic expropriation compensation. The case then goes up to the Cour de cassation, which must decide a question of law: does Article L. 13-2 of the Expropriation Code apply to the abandonment of Article L. 123-9 of the Town Planning Code?

The reasoning of the court — dissected

The Cour de cassation answered no. Its reasoning is simple but precise: Article L. 123-9 of the Town Planning Code, in its wording resulting from the law of 31 December 1976, provides for its own rules for abandonment. It refers to Article 8 of the Order of 23 October 1958 (now Article L. 12-3 of the Expropriation Code), which concerns the fixing of the price in the event of abandonment, and not to Article L. 13-2 on expropriation compensation.

In clear terms, the legislator intended to distinguish two situations: expropriation, which is a forced procedure where the community takes your property, and abandonment, which is a voluntary procedure where you ask the community to buy your property. In the first case, compensation is calculated in a way more favourable to the owner (value at the date of judgment). In the second, the price is fixed at the date of the request for abandonment, which may be less advantageous if the market has risen in the meantime.

The Court therefore confirms the previous case law: no confusion between the two regimes. Note, however: this decision only concerns the version of the law applicable in 1976. The law has since evolved, but the principle remains current. What few people know is that this distinction is based on a simple logic: the person who takes the initiative (the owner who requests abandonment) cannot demand the same guarantees as the person who suffers it (the expropriated party).

What this means for you — concretely

If you are the owner of a plot of land located in a ZAD, and you are considering requesting abandonment, this decision has direct consequences on the amount you will receive. Concretely, the buyback price will be fixed at the date of your request, and not at the date of judgment. If real estate prices have risen in the meantime, you will lose money. For example, in Espalion, where the property market is dynamic, a plot estimated at €100,000 at the time of the request could be worth €120,000 two years later at the time of judgment. With the application of Article L. 13-2, you would have received €120,000; without it, you will only receive €100,000. The difference is €20,000.

For tenants, this decision has no direct impact, unless the landlord owner decides to abandon the property. In that case, the tenant may see their lease terminated prematurely. For potential buyers, be careful: if you buy a property in a ZAD, check whether an abandonment is in progress, as the price may be below market value.

undefined, I have come across cases where owners have requested abandonment without knowing this rule, and have been disappointed with the amount offered. My advice: before making a request for abandonment, consult a lawyer specialising in property law to assess the advisability of the step.

Four tips to avoid this type of dispute

• Check the zoning of your land: Consult the local town planning plan (PLU) of your municipality (Decazeville, Espalion, etc.) to see if your land is in a ZAD or a designated development zone (ZAC). A simple visit to the town hall can save you from surprises.
• Do not confuse abandonment and expropriation: If the municipality offers you a buyback, ask your lawyer to specify the legal basis. Abandonment is voluntary, expropriation is forced. The rules are not the same.
• Anticipate the valuation date: If you are considering abandonment, have your property valued by a real estate expert at the date of your request. This will allow you to know the base price, and avoid losing money if prices rise later.
• Negotiate an amicable agreement: Before starting court proceedings, try to negotiate a price with the municipality. An amicable agreement may include an indexation clause linked to market evolution, which partially protects you.

Further reading: related case law and developments

This decision is part of a consistent line of the Cour de cassation. Already, in a judgment of 7 March 1984 (no. 82-14.352), the Court had ruled that abandonment did not fall under the rules of expropriation. The 1990 decision confirms and clarifies this principle. Since then, the law has evolved: Article L. 123-9 of the Town Planning Code has been amended, but the distinction between abandonment and expropriation remains. The courts continue to apply it strictly.

A recent trend: some municipalities try to assimilate abandonment to expropriation to benefit from more favourable rules (particularly regarding deadlines). But case law resists. For the future, it is likely that the distinction will be maintained, unless the legislator intervenes.

What you absolutely must remember

FAQ:

1. Is abandonment always less advantageous than expropriation? Not necessarily. If prices fall between the request and the judgment, abandonment may be more favourable. But in a period of rising prices, the opposite is true.

2. Can I refuse abandonment after having requested it? No, once the request is made, the municipality can compel you to sell. Think carefully before acting.

3. What are the time limits for challenging the price? You have two months from the notification of the price by the municipality to refer the matter to the expropriation judge. After this period, the price is final.

4. Does this decision apply to ZACs? No, abandonment in a ZAC (Article L. 311-2 of the Town Planning Code) has its own rules. Consult a lawyer.

5. Can a tenant request abandonment? No, only the owner can do so. The tenant has no rights over the property.

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 →