When you are planning to sell or buy a property in France, it is essential to understand the right of first refusal. This legal mechanism allows the municipality to purchase a property as a priority during a real estate transaction in certain defined areas. This article explains how this right works, the reasons that justify it, the deadlines to respect, and the possible remedies to secure your project.
How Does the Urban Right of First Refusal Work in France?
When you decide to sell a property located in a pre-emption zone, your notary must send a declaration of intent to sell (DIA) to the relevant local authority. This document officially informs the municipality of your sale project and the proposed price.
From receipt of this declaration, the municipality may decide to purchase your property instead of the originally intended buyer. This right is based on Articles L211-1 to L211-7 of the French Urban Planning Code, which precisely regulate the urban right of first refusal (DPU).
There are two forms of DPU. The simple DPU applies to most properties located in a pre-emption zone. The reinforced DPU extends to more situations: transfers of shares in real estate companies and co-ownership properties over ten years old, which are normally excluded from the simple DPU. This distinction allows local authorities to adapt their land strategy according to their development objectives.
What Are the Reasons for a French Municipality to Exercise Its Right of First Refusal?
A municipality may exercise its right of first refusal only if it justifies a clearly defined public interest project. The most common legal grounds include the creation of social housing, the development of public facilities, the protection of sensitive natural areas, or the preservation of local retail businesses. These cases of pre-emption are governed by the Urban Planning Code and may also be exercised by the State or other local authorities in certain specific situations.
Each pre-emption decision must be justified and must clearly state the objective pursued. Without sufficient public interest justification, the decision may be challenged before the administrative court.
Main Reasons for Pre-emption
Reason | Type of right concerned | Concrete example |
|---|---|---|
Creation of social housing | Reinforced DPU | Acquisition of a building for conversion into social rental housing |
Development of public facilities | Simple or reinforced DPU | Construction of a school, nursery, or public park |
Protection of natural areas | DPU or specific right | Preservation of a wooded area or ecological corridor |
Preservation of local retail businesses | Commercial right of first refusal | Maintaining a commercial unit in the town center |
What Is the Deadline for Pre-empting a Property in a Pre-emption Zone in France?
When your property is located in a pre-emption zone, the municipality has 2 months from receipt of the DIA to exercise or waive its right. During this period, the final deed of sale cannot be signed before the notary. You must therefore wait before completing your transaction.
If the municipality does not respond within this two-month period, its silence is deemed a waiver. This is known as the clearance of the right of first refusal, meaning that the sale can proceed normally. Your notary plays a central role in managing this deadline: they send the declaration to the municipality, monitor the exchanges, and inform you of the final decision to secure your real estate project.
How Can You Know Whether a French Property Is Subject to the Right of First Refusal?
To check whether your property is affected by the right of first refusal, several steps are available. The first is to consult your municipality’s local urban planning plan (PLU), available at the town hall or on the Urban Planning Geoportal. This document precisely maps the zones subject to the urban right of first refusal.
You can also contact your town hall’s planning department directly, which will confirm your property’s status and any implications for your sale project. Finally, your notary systematically checks this point when drafting the preliminary sale agreement, in accordance with the Urban Planning Code.
Checks to Carry Out Before Listing the Property
Consult the municipality’s PLU to identify pre-emption zones.
Contact the town hall’s planning department to confirm the property’s status.
Check the exact zone where the property is located, using the address or cadastral parcel.
Ask your notary for advice at the start of your sale project.
Can You Refuse or Avoid the Right of First Refusal?
As a selling owner, you cannot directly oppose the right of first refusal if the municipality decides to exercise it. However, you have legal remedies if you believe the decision is abusive or insufficiently justified. You may bring the matter before the administrative court within two months of notification, particularly in cases of misuse of power or when the public interest grounds are not clearly established.
In addition, if the municipality offers a different price from the one stated in your preliminary sale agreement, you have a choice: either abandon the sale or refer the matter to the expropriation judge to have the property price determined judicially. This procedure allows you to obtain fair compensation if the price proposed by the holder of the right is lower than the property’s actual market value.
Why Use an Optimhome Advisor for Your French Real Estate Project?
Selling or buying a property subject to a right of first refusal requires professional support to secure every stage of the transaction. Optimhome advisors, experts in their local market, guide you through all administrative and legal checks, including those related to rights of first refusal. Thanks to their in-depth knowledge of the area and command of legal deadlines, they help ensure a smooth and compliant transaction. Contact an Optimhome advisor now or value your property online to start your project with confidence.
Frequently Asked Questions About the Right of First Refusal in French Real Estate
How Long Does the Right of First Refusal Last After a Preliminary Sale Agreement?
The 2-month period starts from receipt of the declaration of intent to sell by the municipality, generally after the preliminary sale agreement has been signed. This legal deadline cannot be shortened by the seller, and the final sale can only be completed once this period has expired or after the municipality has expressly waived its right.
Does the Tenant Have a Right of First Refusal on Their Home in France?
Yes, the tenant has a right of first refusal when the owner gives them notice to sell the property they occupy. The tenant then has priority to purchase the property under the notified conditions. This right protects sitting tenants and gives them the opportunity to become owners of their home.
How Can You Speed Up or Cancel a Right of First Refusal?
It is not possible to speed up the legal 2-month period granted to the municipality. However, the seller or the excluded buyer may file an appeal for misuse of power before the administrative court within 2 months of notification.
Author :
Fabrice DOBROWOLSKI - Optimhome Network Development Director
Optimhome offers you personalized support for your real estate project. Benefit from all my advice, based on several years of experience, to ensure the success of your project.
