Eviction compensation: the seller must pay the value of the property on the day of eviction

Imagine: you own a small house in Pont-l'Abbé, near Quimper. You sell it to a couple who dream of setting up their crêperie business there. Except that, a few months later, a third party appears and proves that they were the true owner. You are then ordered to pay eviction compensation to the buyer. But on what basis? The price you had set? The current value of the property? This is precisely the question the Court of Cassation decided in its judgment of 7 July 2010 (No. 09-12.055).

This decision is crucial for all sellers and buyers: it sets out the method of calculating eviction compensation due in the event of the sale of a property that did not actually belong to the seller. But what exactly does this change? And how can you protect yourself?

In this article, I will explain the judges' reasoning simply, the practical consequences for you, and give you concrete advice to avoid this type of dispute. Because, as I often tell my clients: prevention is better than cure — especially when the amounts involved can reach several tens of thousands of euros.

The facts: a story that happens every day

Mr and Mrs X, owners of a house in Quimper, decide to sell it to Mr Y, a young entrepreneur. The preliminary contract is signed, the notarial deed is executed. Everything seems in order. But a few months later, a certain Mr Z appears and claims ownership of the property. He demonstrates that the true owner was himself, as the sellers never had a valid title. The court then annuls the sale: Mr Y is evicted.

Mr Y, who had already undertaken works and intended to resell the property at a profit, claims eviction compensation. But how much? The sellers offer the initial sale price (€150,000). Mr Y demands the value of the property on the day of eviction, i.e. €220,000, because property prices have risen significantly in the meantime. The dispute is brought before the courts: first the tribunal de grande instance of Quimper, then the cour d'appel of Rennes, and finally the Court of Cassation.

The lower courts had ruled in favour of the sellers, holding that the compensation should correspond to the initial sale price. But the Court of Cassation quashes this decision: it recalls that Article 1633 of the Civil Code requires the seller to return to the evicted buyer 'the price' and 'everything he has profited from' — but that this price must be updated to the date of eviction. In other words, it is not the sale price that matters, but the value of the property at the time the buyer is deprived of it.

The reasoning of the court — broken down

To understand this decision, you first need to know Article 1633 of the Civil Code. This provision states that 'the seller is obliged to return to the evicted buyer the price, and everything he has profited from'. But what does 'the price' mean? The Court of Cassation answers clearly: it is the value of the property on the date of the eviction decision, not on the day of sale.

In other words, if the property has increased in value between the sale and the eviction, the seller must bear the increase. Conversely, if the property has lost value, the buyer can only claim the value on the day of eviction (which would be lower). This is a logical solution: the compensation aims to place the buyer in the position he would have been in if he had not been evicted. However, if he had kept the property, he would have benefited from its increase in value.

The Court further specifies that this value must be determined objectively, 'according to the average value per square metre in an equivalent sector on that date, regardless of what the buyers' plans may have been'. Thus, even if the buyer had a specific project (for example, building a rental property), this does not increase the compensation: only the market value of the property counts.

However, note: this rule applies when the buyer is evicted because the seller was not the owner. If the eviction results from a defect in alignment or an undisclosed party wall servitude, other rules may apply. What few people know is that Article 1633 is often excluded by contractual clauses limiting the warranty against eviction. But in the absence of a clause, this provision applies fully.

What this changes for you — concretely

This decision has direct consequences for sellers and buyers. Here is what you need to remember according to your profile:

• If you are selling a property: you must be absolutely certain that you are the legitimate owner. If a third party claims the property after the sale, you risk having to pay compensation calculated on the current value of the property, which may be much higher than the sale price. Example: you sell a flat in Quimper for €200,000 in 2020. If the eviction takes place in 2025 and the property is then worth €280,000, you will owe €280,000 to the buyer (excluding costs and works).
• If you are buying a property: in the event of eviction, you are entitled to compensation based on the value of the property on the day of eviction, not on the price you paid. This is an important protection, especially in a rising market. But note: you must act quickly, as the limitation period (time to bring a claim) is five years from the eviction.
• If you are a property professional (agent, notary, developer): this case law reminds you of the importance of checking the chain of title. A mistake can be costly. undefined, I have come across cases where a notary failed to check a prior gift, resulting in the annulment of a sale and an eviction compensation of €150,000.

In practice, the calculation of compensation is done by judicial or friendly expert appraisal. The judge often orders an expert appraisal to determine the market value of the property on the date of eviction. It takes into account the local market (in Pont-l'Abbé, for example, prices increased by 15% between 2015 and 2020). The buyer's personal projects (setting up a business there, living there) are not taken into account, unless they have already been carried out and objectively increase the value.

Four tips to avoid this type of dispute

• Have your title checked before selling. Before putting a property up for sale, ask a notary or a lawyer to verify that you are indeed the owner. A title search over 30 years may reveal hidden defects. This is an investment of a few hundred euros that could save you millions in damages.
• Insist on a notarial deed with a warranty against eviction. When buying, ensure that the deed of sale contains a warranty against eviction clause. If a problem arises, this clause will allow you to claim damages, often higher than the statutory compensation.
• Keep all surveys and documents. If you are selling, keep safely the technical surveys (asbestos, lead, etc.) and the cadastral plan. They can be used to prove that you sold in good faith and limit your liability.
• In case of a dispute, do not neglect the limitation period. The action for warranty against eviction must be brought within five years of the eviction. After this time, you lose all right to compensation. If you are evicted, consult a lawyer immediately.

Further reading: related case law and developments

The solution adopted by the Court of Cassation in 2010 is not isolated. It confirms earlier case law, particularly a judgment of 9 July 1996 (No. 94-16.523) which had already held that eviction compensation should be fixed on the date of eviction. However, some older decisions (Civ. 3e, 12 February 1970) seemed to adopt the date of sale. The 2010 decision puts an end to this uncertainty.

Since 2010, the Court of Cassation has had several opportunities to clarify its position. For example, in a judgment of 19 September 2018 (No. 17-19.847), it held that the evicted buyer could also claim the fruits (rents received by the seller between the sale and the eviction) on the basis of Article 1633. The trend is therefore favourable to buyers.

For the future, it is possible that case law may evolve further, particularly to take into account increases in value due to the buyer's works. But for now, the rule is clear: compensation is calculated on the objective market value, without taking into account personal projects.

Key points to remember

Practical FAQ:

• What is eviction compensation? It is the sum that the seller must pay to the buyer when the sale is annulled because the seller was not the owner. It aims to compensate for the loss of the property.
• On what basis is it calculated? On the value of the property on the day of eviction, determined by expert appraisal (average price per m² in the area).
• Can I claim more if I had a project? No. Personal projects (e.g., setting up a business there) are not taken into account, unless they have already increased the value of the property (works carried out).
• What are the time limits for bringing a claim? You must bring the action for warranty against eviction within 5 years of the eviction. After this time, you lose your rights.
• What should I do if I am a seller and a third party claims the property? Consult a lawyer immediately. You may try to negotiate a settlement with the buyer to avoid costly litigation.

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