The urban right of pre-emption is a legal right granted to the local authority, enabling it to take the place of the buyer of a property and acquire it as a matter of priority.
The holder of the urban pre-emption right must be a local authority that has set up pre-emption sectors within its territory.
HOW URBAN PRE-EMPTION RIGHTS ARE EXERCISED
The notary responsible for the sale must inform the local authority of the details of the transaction. This is done by sending a D.I.A. (declaration of intent to sell).
This declaration will indicate, in particular, the sale price of the property and furnishings and the amount of the agency fees.
The notary should carry out this formality immediately after signing the preliminary contract (compromis de vente or promesse unilatérale de vente), as the final sale can only take place once the local authority has decided whether or not to exercise its right of pre-emption.
The local authority has 2 months to respond.
If it decides not to acquire the property within this period, the sale can be concluded with the original buyer.
If the municipality decides to exercise its right of pre-emption within the 2-month period, the seller is obliged to sell the property to the municipality. Otherwise, the seller could be faced with legal disputes and consequences. It is important to note that the local authority's exercise of its right of pre-emption is governed by law, and that it must comply with the deadlines and procedures laid down.
If the local authority does not respond within 2 months, this is tantamount to a tacit waiver of its right of pre-emption, meaning that the sale can go ahead with the initial buyer.
In all cases, the status of the buyer is irrelevant. This means that the municipality can exercise its right of pre-emption even if the sale goes to a family member (unlike other rights of pre-emption, such as that exercised by the SAFER, which exclude this possibility).
It should be noted that if the sale price is renegotiated between the parties, the right of pre-emption must again be respected, taking into account the new conditions of sale.
WHEN MUST URBAN PRE-EMPTION RIGHTS BE WAIVED?
This right of pre-emption applies only to U and AU zones in municipalities that are subject to a Local Urban Development Plan (PLU).
For the sale of land in these zones, where the local authority has introduced an Urban Right of Preemption (DPU), the land must be offered to the local authority.
For the sale of houses or flats, the situation will depend on whether the property is subject to a simple or reinforced DPU.
WHERE THERE IS A SIMPLE RIGHT OF PRE-EMPTION
If the local authority has introduced a simple DPU, certain sales will not have to be proposed to it. This is the case for sales of one or more lots located in a co-owned building, whether they are intended for main residential, professional or mixed use, provided that the co-ownership regulations were published more than 10 years ago.
Sales of built property will also not be subject to the DPU for a period of four years from completion.
IN THE PRESENCE OF A REINFORCED RIGHT OF PRE-EMPTION
In the case of a reinforced right of pre-emption, the municipality must systematically be informed of the sale of the property.
In short, if the municipality exercises its urban right of pre-emption, it becomes the purchaser of the property and the sale cannot be made to the original purchaser or to other prospective purchasers.
