Sale of Luxury Real Estate in a Pre-emption Zone: What You Need to Know

Sale of Luxury Real Estate in a Pre-emption Zone: What You Need to Know

Selling luxury real estate can already be a complex process due to the numerous steps to be taken. However, if your property is located in a pre-emption zone , this transaction can become even more delicate. In fact, the pre-emption zone gives a priority right to a public authority (such as a municipality) over the acquisition of your property. This means that, under certain conditions, this community can buy your property before any other buyer, and this, under the conditions that you have defined in your sales project.

In the context of the sale of prestigious real estate, it is therefore essential to fully understand the implications of a sale in a pre-emption zone and to know how to navigate this process without compromising the transaction.

What is a Preemption Zone?

A pre-emption zone is a geographical area delimited by local authorities, in which they have a priority right to purchase real estate put up for sale. This generally applies in the context of town planning or development projects, such as the creation of public facilities, the protection of natural spaces, or even urban renovation.

The most common preemption zones are as follows:

• Urban pre-emption zones (DPU) : local authorities can intervene for projects of public interest.
• Pre-emption zones for sensitive natural areas (ENS) : generally linked to the protection of sensitive ecological zones.
• Scope of safeguarding operations : to preserve historical or architectural heritage.

Sale of a Luxury Property in a Pre-emption Zone: The Steps to Follow

If you own a luxury property located in a pre-emption zone, the sales procedure differs slightly from a traditional real estate sale. Here are the main steps to follow to avoid any surprises.

1. The Declaration of Intent to Dispose (DIA)

The first formality to complete when you decide to sell a property in a pre-emption zone is to file a Declaration of Intent to Dispose (DIA) . This document, addressed to the town hall or the competent authority, informs the public authorities of your intention to sell. It specifies the conditions of sale, such as:

• The sale price of the property,
• The characteristics of the property (surface area, location, etc.),
• The buyer's possible financing conditions.

The DIA is essential, because it allows the community to decide whether it wishes to exercise its right of pre-emption or not. It is only once this declaration has been made that you will know if the sale can take place with the private buyer you have chosen, or if the community replaces this buyer.

2. The Community’s Response Time

After receiving the DIA , the community has a legal period to decide on the purchase of the property. This period is generally two months from the date of receipt of the DIA. During this time, the sale is suspended and you cannot sign the final deed of sale.

Three answers are possible:

• Waiver of pre-emption : if the community does not wish to acquire the property, you are free to sell it to the buyer of your choice.
• Pre-emption : if the community decides to exercise its right of pre-emption, it will purchase the property under the conditions set out in the declaration.
• Price negotiation : in certain cases, the community may judge that the sale price is too high compared to its estimate. If an agreement on the price is not reached, an evaluation procedure by a third party authority (the expropriation judge) can be initiated.

3. If the Community Preempts the Good

In the event that the community decides to pre-empt your luxury property, several scenarios are possible:

• Pre-emption of the conditions of sale : The community accepts your price and the conditions of sale. In this case, the transaction is concluded as with a traditional buyer.
• Price negotiation : If the community considers that the price is overvalued, it can request a downward revision. If an agreement is not reached, the sale may be subject to the opinion of the expropriation judge, who will set the price based on objective estimates.

In the context of a luxury good, this phase can sometimes be delicate, because the values ​​estimated by the public authorities are often lower than those of the market. The unique characteristics of high-end properties (breathtaking views, prestigious services, rarity of the property) can be undervalued, hence the importance of negotiating well.

4. If the Community Does Not Preempt

If the community refuses to pre-empt the property, the sale can follow its normal course. You are then free to sell the property to the private buyer you had initially chosen.

However, the preemption procedure is not without impact . Additional delays due to the response of public authorities may frustrate certain buyers in a hurry or limit the dynamism of the sale.

What Impacts for a Luxury Good?

Owners of luxury real estate located in a pre-emption zone should prepare for possible delays in the sales process. Although the majority of DIAs result in a waiver of pre-emption, the simple fact of having to wait for the community's response can discourage some impatient buyers.

However, in the context of prestige goods , buyers are generally more patient and better informed about administrative procedures, which can alleviate these frustrations. In addition, communities are generally reluctant to pre-empt very high-value goods, as this would involve significant budgets.

Practical Tips for Selling a Luxury Property in a Preemption Zone

• Anticipate deadlines : Inform your potential buyers that the sale could be slightly delayed due to the right of pre-emption. Be transparent from the start to avoid frustration.
• Negotiate firmly : If the community seeks to lower the price, do not give in too quickly. Luxury goods have unique features that often justify their price.
• Call on experts : Using a real estate agent specializing in luxury properties can be a valuable asset. These experts are familiar with the particularities of sales in pre-emption zones and can help you defend the value of your property.

Conclusion: Prepare Well to Avoid Surprises

The sale of luxury real estate in a pre-emption zone requires a certain vigilance and a good understanding of the process. Although pre-emption is an important tool for communities, it should not be an insurmountable obstacle for owners of prestigious properties. With the right advice and anticipation of the steps, you can successfully sell your property, whether it is subject to pre-emption or not.

Finally, for owners of luxury properties located in these areas, do not hesitate to contact us to assist you in putting them up for sale on our portal. “Charming Properties” is a space dedicated to prestigious real estate advertisements, where buyers and sellers of exceptional properties meet.