Expropriation Compensation: The Price of a Reserved Plot Fixed as if It Were Free

Imagine: you have owned a plot of land in Saint-Junien for thirty years. One day, the town announces that it will expropriate part of your plot to create a public park. The land was already 'reserved' under the local plan (a servitude prohibiting construction pending expropriation). The administration offers you compensation calculated taking this reservation into account – in other words, a very low price, since the land could not accommodate anything. Is this legal?

This question is asked by many, in Brive-la-Gaillarde as elsewhere. Yet the answer has been clear since 1965: the value of the land must be fixed as if it had never been subject to this reservation. In other words, the owner must not suffer the depreciation due to the planning measure that has frozen their property for years.

In a famous ruling, the Court of Cassation decided: the price of a reserved plot is determined 'in relation to the benefiting authority, as if it had ceased to be subject to the reservation'. A simple rule, but its application can save thousands of euros for expropriated owners.

The facts: a story like many others

In the 1950s, the company 'Tanneries de France' owned a plot of land in Strasbourg. The city, as part of its local plan, had listed this land as a 'reservation' for public facilities. In 1963, the municipality initiated expropriation proceedings to acquire the land. However, a dispute arose over the amount of compensation.

'Tanneries de France' considered the land to be worth 150,000 (old) francs given its location and area (about 2,000 m²). The city, on the other hand, offered 80,000 francs, arguing that since the land was reserved, its market value was much lower: no one could have bought it to build, because planning reservations prohibit any non-conforming construction.

The case came before the Colmar Court of Appeal (expropriation chamber). In July 1963, the judges ruled in favour of the city: they fixed the compensation at 90,000 francs, taking the reservation into account. The company 'Tanneries de France' appealed to the Court of Cassation. Its argument: the planning reservation should not reduce the compensation, otherwise the authority would benefit from its own measure to pay less.

The Court of Cassation, in its ruling of 12 March 1965, quashed the Colmar decision. It recalled that, under Article 28 of Decree No. 58-1463 of 31 December 1958 (which then governed local plans), 'the price of a reserved plot is fixed in relation to the benefiting authority as if it had ceased to be subject to the reservation'. In other words, the land must be valued as if it were free from any reservation servitude, even though in reality it is not. The case was referred to another court to be retried on this basis.

The reasoning of the court — dissected

The heart of the dispute is a question of fair compensation. When the State or a local authority expropriates, it must pay 'just and prior' compensation (Article 17 of the Declaration of the Rights of Man and of the Citizen). But how do you calculate the value of land that the administration itself has 'frozen' through a planning reservation?

The Court of Cassation answers strictly: the reservation must not work against the owner. The legal basis is Article 28 of the Decree of 31 December 1958 (now codified in Articles L. 211-1 et seq. of the Town Planning Code). This text provides that the price of a reserved plot is fixed 'as if it had ceased to be subject to the reservation'. Why? Because the reservation is a unilateral decision by the administration that has frozen the property for years. If it were taken into account, the expropriating authority would pay less due to its own decision, which would be contrary to the principle of equality before public burdens.

In practice, judges must value the land according to its market value (market price) at the date of expropriation, disregarding the reservation. They consider transactions of free, comparable land in the same area. If the land was developable before the reservation, it is treated as developable. If it was agricultural, the 'free' agricultural value is used.

This 1965 ruling is a confirmation of earlier case law. It is not a reversal: the Court applies the text. But it has immense practical significance: it prevents authorities from systematically underestimating compensation by relying on planning reservations. Since then, this rule has been constant.

What this means for you — practically

If you are the owner of land subject to a reservation (e.g., for a future road, green space, public facility), know that expropriation compensation must not be calculated at a discount. You are entitled to the value of the free land.

Let's take a concrete example in Brive-la-Gaillarde. A 500 m² plot, developable but reserved for a future school. Its free market value is estimated at €200/m², i.e., €100,000. If the administration offered €60/m² due to the reservation (€30,000), you can demand €100,000. The difference is €70,000. With legal and expert fees (often €5,000 to €10,000), the net gain remains considerable.

For buyers: if you purchase land that is already reserved, check that the seller has not been compensated for the depreciation. Sometimes the authority pays a reservation indemnity (for loss). The buyer may benefit from it.

For local authorities: this case law requires you to base offers on the free market price, otherwise the expropriation judge (JEX) may fix a higher amount, with additional costs.

If you are in this situation, you should: have your land valued by a property expert (or a chartered surveyor) who knows free market prices, gather deeds of sale of comparable land in the area, and contest the initial offer by registered letter before referring the matter to the judge.

Four tips to avoid this type of dispute

• Check the reservation as soon as the Local Plan (PLU) is published. Consult your commune's PLU (available at the town hall or online). If your land is in an AU (to be developed) zone with a reservation servitude, note the date of registration. The older it is, the higher the compensation may be (loss of enjoyment).
• Never sign the compensation offer without expert advice. Owners often accept the first proposal, thinking they cannot negotiate. However, an independent counter-expertise can multiply the compensation by two or three. The cost (€1,500 to €3,000) is often recovered from the gain.
• Keep all documents proving the free value of the land. If neighbouring unreserved land has sold for a high price, gather notarial deeds (via the land registry). The judge relies on recent transactions.
• Hire a lawyer specialising in expropriation law before the judicial phase. The expropriation judge fixes compensation after adversarial proceedings. Without a lawyer, you risk losing rights. In Saint-Junien as elsewhere, a lawyer can also negotiate an amicable agreement with the authority before trial.

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

Further analysis: related case law and developments

The rule established in 1965 has been reiterated and refined by subsequent decisions. For example, the Court of Cassation held that compensation must take into account the 'use value' of the land at the date of expropriation, but always disregarding the reservation (Civ. 3e, 17 February 1999, No. 97-70.056).

Another important decision is that of the Conseil d'État (27 July 2005, No. 266573) which extended this rule to reservation servitudes instituted by Schémas de Cohérence Territoriale (SCOTs). Now, all planning documents are concerned.

The trend is therefore constant: protecting the owner against depreciation caused by the public authority. No reversal is expected, as the principle is constitutional (Constitutional Council decision No. 2016-739 DC of 8 December 2016).

What you absolutely need to remember

FAQ:

1. What is the main rule? The expropriation compensation for a reserved plot is calculated as if it were free from any reservation, based on its market value at the date of expropriation.

2. Can I refuse the authority's offer? Yes. You have 1 month to accept or refuse the notified offer. In case of refusal, the expropriation judge will fix the compensation. You can also request a stay of proceedings if the reservation is removed.

3. What are the time limits? The expropriation procedure lasts on average 12 to 18 months. The amicable phase (offer, negotiation) takes 4 to 6 months. The judicial phase (referral to the judge) can add 6 to 12 months.

4. How much does a lawyer cost? Fees vary: a fixed fee of €2,000 to €5,000 for a simple procedure, or 10% of the compensation obtained above the initial offer (success fee). Some lawyers offer an initial consultation for €45.

5. What if the expropriation concerns only part of my land? You can request total expropriation (Art. L. 13-10 of the Expropriation Code) if the remaining part is depreciated by more than 10%.

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