Expropriation Cases

Expropriation is the acquisition of privately owned real estate by the state or public legal entities, in cases where the public interest requires it, on the condition that payment is made in advance. For the owner, the process often begins with a notification and moves forward within short deadlines. For this reason, having an expropriation lawyer evaluate the process from the very first notification is important, both to review the legality of the procedure and to ensure that the compensation reflects the property's true value.

Two separate branches of the judiciary come into play in expropriation disputes: objections against the expropriation procedure itself are heard in the administrative court, while disputes concerning the compensation are heard in the judicial courts, before the civil court of first instance. Knowing which claim must be brought before which court, and within what time limit, is the first requirement for preventing a loss of rights.

How does the expropriation process work?

Under Expropriation Law No. 2942, the process broadly consists of the following stages:

1. Public interest decision: The administration decides that the expropriation serves the public interest, and this decision is approved by the competent authority.
2. Valuation: A valuation commission formed within the administration determines the estimated value of the property.
3. Purchase procedure (settlement negotiations): The administration notifies the owner by official letter that it wishes to purchase the property through negotiation; if the owner applies within fifteen days of receiving the letter, negotiations are held with the settlement commission (Expropriation Law Art. 8). If an agreement on the price is reached, minutes are drawn up and the transfer is registered at the land registry; in that case, a lawsuit over the price cannot be filed afterward.
4. Price determination and registration lawsuit: If no agreement is reached, the administration files a lawsuit before the civil court of first instance in the place where the property is located (Expropriation Law Art. 10).

Before accepting the price offered during settlement negotiations, it is helpful to have the nature of the property and comparable values independently examined. The minutes signed during the negotiation may later eliminate the possibility of objection.

Price determination and registration lawsuit

This lawsuit is filed by the administration, not the owner; the owner is in the position of defendant. The court holds a hearing within the time limits set out in the law and invites the parties to settle. If no settlement is reached, an on-site inspection is carried out and the value of the property is determined through a panel of expert witnesses. Since the former statutory provision on the interest to be applied in cases of late determination of the price was annulled by the Constitutional Court, current judicial practice on this matter should be followed in the specific context of each case.

After the price determined by the court has been deposited in a bank in the name of the right holder, the court rules that the property be registered in the name of the administration. The owner must submit objections to the expert report on time and with reasoned grounds; deficiencies in the determination of the price can often be corrected at this stage.

What factors determine the price?

Article 11 of the Expropriation Law lists the factors to be taken into account in the valuation. These include the type and category of the property, its surface area, all characteristics and elements that may affect its value, its tax declaration if any, valuations made by official authorities, the net income of the property in the case of land, and comparable sales without any special purpose in the case of building plots. The distinction between a building plot and a field, the zoning status, and the structures and trees on the property directly affect the outcome. Value increases that would result from the zoning and service project requiring the expropriation are not taken into account.

Documents the owner should prepare

For the price to be determined correctly, it is important that the owner gather the information and documents in their possession at an early stage. The following documents in particular are frequently used in the process:

• Current title deed record and any encumbrance information
• Zoning status certificate and plan notes
• Property tax declarations for the property
• Comparable information on recent sales in the area
• Photographs showing the structures, trees and facilities on the property
• If the property has been leased, lease agreements and income records

For agricultural land, the crop type and yield information, and for building plots, the construction conditions in the zoning plan, directly affect the expert's assessment. Providing this data in full helps ensure that the report reflects the actual situation.

Annulment action against the expropriation procedure

If the owner believes that the expropriation procedure is unlawful (for example, if there is a deficiency in the public interest decision or in the procedure), they may file an annulment action before the administrative courts. According to Article 14 of the Expropriation Law, this action must be filed within thirty days from the notification made to the owner by the court in the price determination lawsuit (for those who cannot be notified, from the newspaper announcement). The same article also allows for a correction action before the judicial courts for material errors in the identification of the expropriated property. Because these time limits are short, an assessment should be made as soon as the notification is received.

Partial expropriation and the remaining portion

When only a part of the property is expropriated, the value of the remaining portion may decrease or it may become unusable. In this case, the law provides that the decrease in the value of the remaining portion must also be taken into account; if the value of the remaining portion increases, this increase may be deducted within certain limits (Expropriation Law Art. 12). If the remaining part is not suitable for use, the expropriation of that part as well becomes mandatory upon the owner's written application, submitted no later than thirty days from the notification of the expropriation decision.

Expropriation without compensation (de facto seizure)

When the administration builds a road, park or facility on privately owned property without carrying out a proper expropriation, or allocates the property to public service through a zoning plan and then takes no action for a long time, this is called de facto seizure (expropriation without formal procedure). In this situation, the owner may file a lawsuit before the judicial courts seeking the prevention of the seizure or payment of the property's value. These cases are subject to a special regime under Provisional Article 6 of the Expropriation Law; since the date of the seizure and the factual situation may change the applicable rules, each file should be examined carefully on its own facts.

Right of repurchase

If, within five years from the finalization of the expropriation price, the administration carries out no work or construction in line with the purpose of the expropriation and leaves the property as it is, the former owner or their heirs may take back the property by returning the amount they received, together with statutory interest accruing from the day they received it. This right lapses if it is not exercised within one year from the end of the five-year period (Expropriation Law Art. 23).

Support from our office

Every file is unique; since the nature of the property, its zoning status and the procedure followed by the administration may lead to different outcomes, the specific situation must be assessed separately. Our office supports property owners with preparation for settlement negotiations, review of expert reports, annulment actions, and the pursuit of de facto seizure cases. For other real estate disputes, you can visit our real estate law page.