Præemption

Préemption is a legal mechanism by which a designated authority or entity has priority rights to acquire a property or asset when its owner intends to sell, and before the sale can be completed to a third party. The right is exercised under predefined conditions and usually at the price and terms offered to the private buyer. The aim is to serve public policy goals such as orderly urban development, preservation of agricultural land, or the supply of housing.

In France, the best-known form is the droit de préemption urbain (DPU). It authorizes municipalities to preempt properties within a defined urban area when the owner announces an intended sale, in order to implement urban renewal or control land use. The owner must notify the sale to the competent authority, which then has a limited period to decide whether to exercise the right. If exercised, the sale takes place between the seller and the public authority under the same price and terms as offered to a private buyer; if not exercised, the sale proceeds to the purchaser chosen by the owner.

Other forms exist as well. The SAFER bodies can exercise a droit de préemption on agricultural land to preserve farmland, while other public authorities may hold preemption rights in specific contexts such as housing or local development. Exemptions and limitations apply, including certain transfers within families or between related entities, and not all sales fall under a preemption right.

The decision to preempt can be subject to administrative review, and owners may challenge implementation in administrative courts. Préemption remains a tool to influence land use, planning, and resource preservation within legal frameworks.