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Pre-empted land resold: no lost added value for the seller

Cass. 3e civ., 6 October 2016: the seller of land pre-empted and later resold, who took the initiative of selling, cannot recover the lost added value.

grassy meadow behind an old wooden fence, small stone building at the far end of the land

In 1969 an owner declared her intention to sell her farmland plot; the State pre-empted it at a price she accepted, then the land changed hands down to private buyers. She argued that it was never used for the planned operation: could she recover the lost added value under the right to the peaceful enjoyment of her possessions? No, answered the Third Civil Chamber of the Cour de cassation (the French supreme court for civil matters) in a reported decision of 6 October 2016: the Planning Code (code de l’urbanisme) then applicable did not require retrocession of the land to be offered to her, no fault was established and the owner had herself taken the initiative of selling. For the valuer, the chronology and the legal basis of the claim come first.

The facts

In 1969 the owner of a farming plot in a deferred development zone (zone d’aménagement différé, an area subject to a public pre-emption right) sent the State a declaration of intent to sell (déclaration d’intention d’aliéner, the notice that triggers pre-emption). The State exercised its pre-emption right, acquiring the plot at a price the seller accepted. In 1982 the State transferred the plot to a development company, the Société d’aménagement du Biterrois et de son littoral (Sebli), which resold it in 1999 to the municipality of Agde; in 2003 the municipality resold it to private buyers (the consorts Y…).

In 2004 the former owner, arguing that the plot had not been used for the operation that justified its pre-emption, sued the State, Sebli and the municipality of Agde for retrocession (rétrocession, the return of the property to its former owner) and, in the alternative, for damages. After a first quashing (Cass. 3e civ., 14 December 2011, no. 08-18.711), the Nîmes Court of Appeal, on remittal, dismissed her claim for damages on 21 May 2015.

The former owner appealed. In her view, the operation, intended to curb property speculation, had never even begun, the land had passed to a private person after four transfers without retrocession being offered to her, and its value had been multiplied by thirty. She criticised the Court of Appeal for not examining whether those circumstances amounted to a disproportionate interference with her right to the peaceful enjoyment of her possessions, guaranteed by Article 1 of Protocol No. 1 to the European Convention on Human Rights.

The decision

The Cour de cassation dismissed the appeal (Cass. 3e civ., 6 October 2016, appeal no. 15-25.154, reported). It relied on three grounds of the Court of Appeal: a point of law correctly held, a sovereign assessment and a fact noted. That court had held, “on grounds not challenged, correctly, that no provision of the Planning Code then applicable required the holder of the pre-emption right and the successive purchasers to offer retrocession of the pre-empted property to the former owner” (translated from the French). It had found, within its sovereign assessment, “that no fault was established against the State, Sebli or the municipality of Agde”. Lastly, it had noted that the former owner “had taken the initiative of selling her land”, from which the Court inferred that “the loss of the added value generated by it after the exercise of the pre-emption right could not constitute an interference with the rights of the original owner protected by Article 1 of the First Additional Protocol to the Convention for the Protection of Human Rights and Fundamental Freedoms”.

Hence the Court of Appeal, “which was not required to carry out an enquiry or to answer submissions that its findings made ineffective, legally justified its decision in dismissing the claim for damages”.

The decision says nothing about the plot’s actual use or value: the outcome rests on those three grounds. It is also tied to the code “then applicable”: for a more recent pre-emption, the texts in force must be checked.

What this changes for valuation

The legal basis before the figure. A valuer consulted on lost added value after a pre-emption starts by reconstructing the facts: who took the initiative of the sale, whether the price was accepted or set by the court, which transfers followed, at what dates and prices, and which planning decisions changed the land’s intended use. Taken from the deeds, these facts let the lawyer assess the claim before any full valuation.

Pre-emption and surrender: two rulings to reconcile. On 18 April 2019, the Court found an excessive interference with the right to the peaceful enjoyment of possessions in a surrender case (délaissement, where the owner requires a public body to buy reserved land), another transfer sought by the owner. The municipality had acquired land on a reserved site, hence unbuildable; without maintaining its public-interest allocation, it then made it buildable and resold it for €5,320,000 to a private person (see surrendered land resold as building land). This more recent ruling shows that the owner’s initiative does not by itself rule out compensation under Protocol No. 1. The 2016 ruling remains tied to its own grounds: the initiative of selling (a declaration of intent to sell, a price accepted), no obligation to offer retrocession, no fault. For expropriated land held in a land reserve (réserve foncière), a ruling of 12 March 2026 compensates lost added value only if no public-interest reason justifies the failure to carry out the operation.

Neither annulled compulsory purchase nor statutory retrocession. If the compulsory purchase (expropriation) is annulled and the plots cannot be returned, the lost added value is owed, measured at the date the impossibility is recorded, under the ruling of 30 June 2016 on the annulled compulsory purchase. If the former owner holds the statutory right of retrocession under the Expropriation Code and it has become impossible, the added value runs from the summons to the recognition of the right (see retrocession made impossible). Nothing of the kind here: no annulment, no text requiring retrocession.

An added value breaks down. What follows is the valuer’s method, as the decision lays down no measurement rule. Elsewhere, the dates of an added value depend on the legal basis of the claim, as the two solutions above show; for surrender, the 2019 ruling left the measurement to the court on remittal. The report compares dated values, each under the land’s use, planning and market at its date, and updates any price received by an index it justifies. The thirtyfold increase claimed by the former owner, which the decision does not verify, may blend monetary erosion, land-market trends and, where relevant, a change in intended use; the report separates these effects.

What the valuer takes from it

  • Land pre-empted under the code then applicable, resold without fault or obligation to offer retrocession: no lost added value for a seller who took the initiative of selling.
  • The Court ruled without examining value; the report starts with the chronology of the transfers, prices and planning decisions.
  • Since the 2019 surrender ruling, the owner’s initiative alone does not rule out compensation; the facts of each case decide.
  • Elsewhere, an added value is quantified at the dates set by the legal basis of the claim; the report separates monetary erosion, the market and the change in intended use.

Further reading

The Compulsory purchase and pre-emption page describes the assignment, its timescale and its fee. The guide Pre-emption by a public body in France: setting a defensible price and the glossary entries droit de préemption, valeur vénale and date de valeur complement this article. The other two 2016 rulings are discussed separately: Annulled compulsory purchase: lost added value when return fails and Public-utility amicable sale: sub-tenant entitled to compensation. On the same theme: Reserved land surrendered then resold buildable: lost gain owed and Retrocession impossible: added value between two dates. The decision is available on Légifrance.

What next

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Erwan BARGAIN

Erwan BARGAIN

Property valuation expert registered with the RENNES Court of Appeal. Registered since 2019, REV and TRV certified by TEGOVA, trained in law and finance, nine years in a notarial office, more than 1,500 valuations.

Background and training

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