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The right of urban pre-emption
Preemption definition
The law offers the possibility to municipalities (or certain public institutions) to define, on their territory, an area in which they can buy real estate in preference to any other buyer. This is called the right of urban pre-emption.
The owner of a property located in this area must inform the municipality if he decides to sell his property. In practice, it is the notary, when he receives the sales agreement, who fills out and sends to the municipality a DIA (Declaration of Intent to Alienate). The DIA indicates the price and conditions of the sale.
The municipality has a period of 2 months, from its receipt, to indicate its willingness to pre-empt the property.
If the municipality renounces pre-emption or remains silent, the sale continues under the conditions provided for in the compromise.
If the municipality notifies the seller of its intention to pre-empt the conditions communicated to it in the DIA, the compromise ends and the sale is concluded between the municipality and the owner.
If the municipality notifies the seller of its intention to buy the property at a price lower than that communicated to it, the compromise also ends. The seller has a period of 2 months to accept or refuse the proposed price, or to renounce the sale. If he refuses the price proposed by the municipality, the municipality may refer the matter to the Judicial Court, which will set the conditions of the sale.
To know : The municipality that preempts a property must pay the price within 4 months from:
• either the decision to buy the property at the price indicated in the DIA or accepted by the seller,
• or the final decision of the judicial court, if it has been seized by the municipality.
The owner of a property located in this area must inform the municipality if he decides to sell his property. In practice, it is the notary, when he receives the sales agreement, who fills out and sends to the municipality a DIA (Declaration of Intent to Alienate). The DIA indicates the price and conditions of the sale.
The municipality has a period of 2 months, from its receipt, to indicate its willingness to pre-empt the property.
If the municipality renounces pre-emption or remains silent, the sale continues under the conditions provided for in the compromise.
If the municipality notifies the seller of its intention to pre-empt the conditions communicated to it in the DIA, the compromise ends and the sale is concluded between the municipality and the owner.
If the municipality notifies the seller of its intention to buy the property at a price lower than that communicated to it, the compromise also ends. The seller has a period of 2 months to accept or refuse the proposed price, or to renounce the sale. If he refuses the price proposed by the municipality, the municipality may refer the matter to the Judicial Court, which will set the conditions of the sale.
To know : The municipality that preempts a property must pay the price within 4 months from:
• either the decision to buy the property at the price indicated in the DIA or accepted by the seller,
• or the final decision of the judicial court, if it has been seized by the municipality.
Good to know
These additional requests will have the effect of suspending the two-month period required for the response of the holder of the right of pre-emption. It resumes from the receipt of the documents or the visit of the property or the refusal of the visit. The sale will be delayed by the same amount. If the remaining period is less than one month, the holder will have an additional one month to take his decision, which brings the period to three months.
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